Aldagen drops second IPO as Sagent mounts $80M offering
Faced with a bleak outlook for classic biotech IPOs, stem cell therapeutic developer Aldagen has opted to drop its second attempt to go public. The developer had planned to raise about $80 million from its offering, but "market conditions" scuttled the IPO.
Those same market conditions have forced a string of biotech companies to slash their share price before finding willing buyers. One of those companies was another Durham, NC-based biotech, Tranzyme, which cuts its price from a range of $11 to $13 to just $4. Aldagen had raised about $60 million from its venture backers and first tried to float an IPO in 2008, when the economy was blighted by a severe recession. Aldagen has several stem cell therapies in the clinic for cardiovascular conditions.
Despite the rough treatment developers have seen so far this year on Wall Street, Sagent Pharmaceuticals believes its approach to marketing injectable drugs can win over investors. Founded five years ago, Sagent plans to sell 5 million shares at $14 to $16 a share with an eye toward raising up to $80 million.