The week’s five health sector IPOs have produced lackluster returns; together they are down 1% on average from their IPO prices. Amedica (NASDAQ:AMDA), which creates improved spine, hip and joint replacements, dropped 6% today after pricing at the largest discount of the year (48% below the midpoint). Treating the pain of bad bones could prove to be more profitable than replacing them, as Flexion Therapeutics (NASDAQ:FLXN), an injectable therapeutics company, leads the health care pack with a 13% gain.
Installed Building Products (NYSE:IBP) has been the week's overall best performer so far, finishing up 16% today. The company's IPO marks the third housing-related IPO of the year after those of Continental Building Products (NYSE:CBPX) and The New Home Company (NYSE:NWHM), both of which priced at a discount only to then achieve double-digit returns. On average, the three companies priced 25% below their proposed midpoints, but are now trading 18% on average above their IPO prices.
|IPO pricings (week of February 10, 2014)|
|Company (Ticker)||Business||Deal Size ($mm)||IPO Price vs. Midpoint||Return as of 2/13|
|Installed Building Products (IBP)||Insulation installer||$82||-27%||16%|
|Flexion Therapeutics (FLXN)||Osteoarthritis pain therapy||$65||0%||13%|
|Talmer Bancorp (NASDAQ:TLMR)||WL Ross-backed regional bank||$202||-4%||8%|
|Concert Pharmaceuticals (NASDAQ:CNCE)||Deuterium enhanced treatments||$84||8%||1%|
|NephroGenex (NASDAQ:NRX)||Diabetic nephropathy treatments||$37||-8%||-1%|
|Amedica (AMDA)||Silicon nitride medical devices||$20||-48%||-6%|
|Eagle Pharmaceuticals (NASDAQ:EGRX)||Injectable forms of generic drugs||$50||-15%||-12%|