Ironwood IPO: Not quite a knockout
Hotly touted Massachusetts biotech Ironwood Pharmaceuticals succeeded in going public on the NASDAQ this week but failed to rake in the amount of cash that industry pundits had predicted. The IPO raised $188 million at a price of $11.25 per share. Not too shabby, but considerably less than the $267 million analysts had envisioned.
Ironwood, which has a Phase III drug (Linoclotide) for irritable bowel syndrome — a large and unsatisfied market — appears to have fallen victim to the weakness in the financial markets triggered by concerns about potential European debt defaults and American unemployment data.
Still, $188 million is nothing to grumble about and if the economic naysayers are correct, it may turn out to be a very prudent step.
The good news: the biotech IPO window is open in the US.
The bad news: it may be closing.