The number of venture-backed life science companies going public neared a peak set in 2000 during the 2nd quarter, raising $2.2 billion and doubling the volume and value of IPOs from the 1st quarter, according to the National Venture Capital Assn. and Thomson Reuters.
There were also 83 venture-backed acquisitions during the quarter, down 59% compared with Q2 2012, according to the groups’ Exit Poll report.
"We have been predicting an IPO pickup in the 2nd half of 2013 and it appears as if this momentum has begun, driven by the strong biotechnology offerings," NVCA president Mark Heesen said in prepared remarks. "We are hopeful that this positive trend will not be impacted by negative externalities in the 2nd half of the year, as has been the case over the last several years. While on the surface, the low acquisitions volume thus far in 2013 could appear problematic, our market intelligence is telling us that there is a great deal of inbound interest for venture-backed targets, suggesting that these companies are holding out for better pricing from strategic buyers. With an improving IPO market, this situation will only improve for our companies."
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There were 21 venture-backed IPOs during the 2nd quarter, according to the report, up 90% compared with Q2 2012. Thirteen of the 21 IPOs were for life science companies, including 11 biotech offerings. That’s the strongest showing since the 3rd quarter of 2000, according to the report.
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Analysts’ ups and downs
- Allergan (NYSE:AGN): Canaccord Genuity lowers price target from $111 to $98, reiterates "hold" rating; Deutsche Bank downgrades from "buy" to "hold" rating, lowers price target from $113 to $98; Goldman Sachs downgrades from "buy" to "neutral" rating, maintains $110 price target; SunTrust Banks downgrades from “buy” to “neutral” rating; Wells Fargo downgrades to "market perform" rating.
- AthenaHealth (NSDQ:ATHN): Piper Jaffray reiterates "overweight" rating, $104 price target.
- Avita Medical (ASX:AVH): Zacks initiates with “buy” rating, $4 price target.
- Becton Dickinson & Co. (NYSE:BDX): ISI Group initiates coverage with "buy" rating, $106.50 price target.
- Boston Scientific (NYSE:BSX): CL King reaffirms "strong-buy" rating, $11.00 price target; Lazard Capital sets $13 price target.
- C.R. Bard (NYSE:BCR): CL King downgrades from “buy” to “neutral” rating.
- Cardinal Health (NYSE:CAH): William Blair upgrades from “market perform” to “outperform” rating.
- Consort Medical (LON:CSRT): Arden Partners upgrades to “add” rating.
- Cooper Cos. (NYSE:COO): J.P. Morgan reiterates "overweight" rating, raises price target from $125 to $130; Zacks reaffirms "neutral" rating, $128 price target.
- Covidien (NYSE:COV): BMO Capital Markets reiterates "outperform" rating, lowers price target from $72 to $64; Goldman Sachs issues new $64 price target, "neutral" rating; Leerink Swann reiterates "outperform" rating, $65 price target.
- Dexcom Inc. (NSDQ:DXCM): Canaccord Genuity reiterates "buy" rating, raises price target from $19 to $25; Leerink Swann reiterates "market perform" rating, raises price target to $22 from $17.
- Edwards Lifesciences (NYSE:EW): Leerink Swann maintains "outperform" rating, reiterates $85 price target.
- Endo Health Solutions (NSDQ:ENDP): Oppenheimer initiates coverage with “market perform” rating.
- Globus Medical (NYSE:GMED): Oppenheimer reiterates "outperform" rating, raises price target from $18 to $19.
- Hansen Medical (NSDQ:HNSN): Cowen & Co. initiates coverage with “outperform” rating.
- Hologic (NSDQ:HOLX): Zacks Investment Research reaffirms long-term "neutral" rating.
- Insulet (NSDQ:PODD): Canaccord Genuity reiterates "buy" rating, raises price target from $28 to $37; Feltl & Co. downgrades from "buy" to "hold" rating, $33 price target; Leerink Swann reiterates "outperform" rating, raises price target to $35 from $30; Oppenheimer increases price target from $28 to $35, maintains "outperform" rating.
- Intuitive Surgical (NSDQ:ISRG): Canaccord Genuity reiterates "buy" rating, $527 price target; First Analysis assumes coverage with “equal weight” rating.
- iRobot (NSDQ:IRBT): Benchmark raises price target from $40 to $45, reiterates "buy" rating.
- Mako Surgical (NSDQ:MAKO): First Analysis initiates coverage with “overweight” rating.
- Mazor Robotics (PINK:MZRTF): First Analysis initiates coverage with “overweight” rating.
- McKesson (NYSE:MCK): J.P. Morgan reiterates "overweight" rating.
- Medtronic (NYSE:MDT): JP Morgan reiterates “neutral” rating, $52 price target; Leerink Swann reiterates "market perform" rating, $54 price target.
- NuVasive Inc. (NSDQ:NUVA): Canaccord Genuity reiterates "buy" rating, raises price target from $24.50 to $29.
- NxStage Medical (NSDQ:NXTM): Lazard Capital raises price target from $15 to $16, "buy" rating.
- ResMed (NYSE:RMD): Deutsche Bank reiterates "hold" rating, raises price target from $45 to $46.
- Smith & Nephew (FTSE:SN, NYSE:SNN): Galvan Research reiterates "buy" rating, £8.00 ($12.34) price target; JP Morgan reiterates "neutral" rating.
- Spectranetics (NSDQ:SPNC): Stifel Nicolaus initiates coverage with “buy” rating, $24 price target.
- Stryker (NYSE:SYK): TheStreet restates “buy” rating.
- Thoratec (NSDQ:THOR): TheStreet lowers from "buy" to "hold" rating.
- Wright Medical (NSDQ:WMGI): Leerink Swann reiterates "outperform" rating, $19 price target.
