• Early-Stage Biotech IPO

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, to create a more stable shareholder base specifically looking to add investors with longer term horizons.

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 the financial community in a truncated period in advance of the 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 market environment generally did not favor early-stage companies.
  • The company committed to maintaining an active IR program, presenting at an average of around 20 conferences per year, meeting with investors on a regular basis.
  • Despite many IPOs trading down afterwards, the company’s stock traded at a large premium to the IPO price for years.