Biotech IPO Case Study

Early-stage IPO with a novel discovery platform

  

IR Challenge/Opportunity

Company C had a novel discovery platform, premiere scientists, and a strong management team. Stern IR was retained initially to ensure they would have a successful IPO during a time when later-stage stories were favored over preclinical platform companies as IPO candidates.

• Strategy
  • Identify a strong syndicate of risk-averse banks for the IPO, including a bulge-bracket lead bookrunner and 3-4 supporting banks
  • Educate underwriter analysts on the science and technology to secure their coverage post-IPO
  • Broaden visibility and create demand among investors in advance of the IPO
  • Target high-profile investor conference opportunities to raise visibility among institutional investors
• Tactics
  • Comprehensive introductions to financial community in truncated period in advance of IPO window
  • Targeted blue-chip investors and known IPO-buyers for the financing
  • Hosted an analyst teach-in for syndicate banks' analysts to educate them on the story and address any issues about the technology prior to the IPO
  • Solicited speaking invitations at high-profile investor conferences to raise visibility pre-IPO
• Results
  • Completed IPO in a challenging market, securing Fidelity as lead investor
  • Efforts resulted in stock price strength even though the current market environment generally did not favor early stage companis
  • Company continues an active IR program, presenting at an average of 20 conferences per year and maintaining an attractive market cap
  • Stock currently trades at an over 200% premium to the IPO price