Call the Plumber: PIPE Logic is Leaky
Executive Summary
Extraordinary times for capital markets have made cheap public biotechs attractive to venture investors. These private investments in public equity (PIPEs) are seen by some as a lifeline to a troubled and undervalued sector, and many VCs are considering significant public investments. But few deals are likely to get done as venture funds set a high bar for investment, regardless of fire-sale prices. Recipients of large PIPE deals may indeed provide venture-like returns for private investors, but an analysis of these financings shows why they are the exceptions that prove the rule.
You may also be interested in...
Financings Of The Fortnight: Hybrigenics, Neurocrine, Xoma, Zogenix, Seaside
Creative, non-dilutive financings highlighted the fundraising activity over the past two weeks.
Financings Of The Fortnight: PIPEing Hot Returns?
Novelos Therapeutics and Purdue Pharma's private placement agreement is among notable biotech financings from the past few weeks.
Deals Of The Week: LeoPharma/Peplin; Bayer/Algeta; Roche/PTC Therapeutics
Each week, "The Pink Sheet" presents commentary on some of the week's most interesting business deals, contributed by the editors of the IN VIVO blog. Visit the blog at 1http://invivoblog.blogspot.com/.