Significant Sell-Off Could Occur For Akebia Therapeutics At Lockup Expiration
- ~13.5 million shares of Akebia Therapeutics are scheduled to become available for public sale on September 15, the end of the 180-day lockup period that began with the March IPO.
- Akebia has fared inconsistently on the market since its debut in March; we are also concerned about its long-term prospects, given that it is far from commercializing any products.
- Recent research shows price declines of between (-2%) and (-5.5%) in the time period surrounding a company's lockup expiration -- particularly if it has strong VC backing, as Akebia does.
- The upcoming lockup period expiration could see significant sell-offs, however, given the substantial venture backing that Akebia has relied on.