Timing is everything

|By:, SA News Editor

Three late bull market biotech IPOs are shining examples of the truism of sector rotation and the value of diving through the funding window before it closes.

Ultragenyx Pharmaceutical (RARE -6.4%) debuted on January 31 on robust volume of 4.4M shares. Trading opened at almost 2x the IPO price of $21 ending the day at $42.25. Prices peaked at $69.77 on March 13. Shares trade hands today at $40. The firm still sports a market cap of $1.2B despite no revenues and two products in Phase 2 clinicals.

Dicerna Pharmaceuticals (DRNA -1.5%) debuted on January 30 on 4M shares. Trading opened at > 2x the IPO price of $15 ending the day at $46 never to return. Today shares exchange hands at $16, a tidy 65% drop from the peak. The company has no revenues and only one product in Phase 1 clinicals.

Uniqure N.V. (QURE -1%) debuted on February 5 on 4.7M shares. Prices struggled to stay above the IPO price of $17 and eventually succumbed to selling pressure ending the day at $14.61. Prices peaked at $18.75 on February 26. Shares trade hands today at $8.80 representing a 53% haircut from the peak. The company has no product revenues but plans to launch its gene therapy product, Glybera, in selected European countries in H1 2014.

Biotech ETFs: IBB, XBI, BIB, BBH, FBT, PBE, BIS