During the year (or more) before your company goes public, you’ll be in a constant state of activity, from building relationships with investors, bankers, and sell-side analysts, to engaging in test-the-waters meetings. However, once your S-1 flips public, the U.S. Securities and Exchange Commission (SEC) requires that you wait 15 days before your road show begins. That doesn’t mean you should sit back and relax, though. Use this checklist to maintain your company’s momentum and progress during this time.
The Westwicke Blog is designed to deliver information and insights into the ever-changing world of healthcare communications.
Financial markets are notoriously difficult to predict. However, armed with decades of Wall Street experience, our investor relations professionals know what can create a strong IPO market — and what can close that window of opportunity.
As we enter the new year, there are several factors to consider for companies that may be considering an IPO. Based on our experience, here are our predictions for the life sciences IPO market in 2020.
As the rock ‘n’ roll generation begins settling into their senior years, the “Baby Boomer factor” is wielding its heavy influence on healthcare as it has on other industries. Healthcare spending has grown substantially over the past few decades, and demand will likely remain strong as the number of Americans aged 65 and older will more than double by 2060. At the same time, technologies such as artificial intelligence, blockchain, software-as-a-medical-device and other advances are transforming the healthcare industry and threatening the status quo through rich networks of connection, collaboration, and interdependence.
Comprised of former buy- and sell-side professionals, Westwicke’s managing directors can attest to how notoriously difficult financial markets are to predict. One area where there is at least some degree of certainty is the heightened challenge of executing a financing in the midst of an election year, where initial public offering (IPO) activity and appetite for risk tend to diminish, particularly in a politically-charged vertical such as healthcare.
Scan the pages of the news and you’ll likely see stories of failed IPOs. Despite fast growth, some companies that go public are plagued by poor preparation and questionable business models. But completing an initial public offering (IPO) is a significant decision for your healthcare company and will transform the way you do business. As the largest healthcare-focused investor & public relations firm in the U.S., our team has handled countless healthcare IPOs. As a result, we’ve witnessed wins and successes as well as IPO mistakes companies make in their quest to go public. If you’re running a company that’s growing fast, avoid these big mistakes as you look to go public.
Drawing investor attention can pose a challenge, even for companies with groundbreaking, new science. In a space teeming with competition, it’s vital that emerging biophama companies developing innovative therapies also establish strong messaging to reach and intrigue potential investors.
At a “banker bake-off,” you have the opportunity to compare investment banks and learn how they position themselves. One bank may talk about its relationships with the buy-side accounts, while another will highlight its track record for successfully getting private companies public.
After hearing that information, how do you make your final decision? Here are five primary areas to focus on to help you select the right banking team.
Congratulations! You have spent the past 12 months — or possibly longer — building relationships with the Street, including investors, bankers, and sell-side analysts. You refined your presentation deck; drafted the S-1 after spending hours in a room with your attorneys, accountants, and management team; and brought your website and its content up to the caliber of a company that expects to be public soon. You engaged with the buy side during test-the-waters (TTW) meetings and, finally, your confidentially filed S-1 has flipped public.
However, U.S. Securities and Exchange (SEC) regulations require that you wait 15 days before the road show begins — so what do you do now?
In April 2018, the Hong Kong Exchange announced a change to its listing rules to allow (among other things) biotechnology companies with no revenue to list on the bourse. The move came as Hong Kong sought to establish itself as a financing hub for pre-revenue companies, in the face of fierce competition from the Chinese mainland and Singapore, exchanges from which had been aggressively wooing companies with fast-growing earnings.
In conjunction with your company’s initial public offering (IPO), your two-week road show will take you across the country and put you in front of hundreds of potential investors. To prepare you for the trip, your bankers will make sure you know the ins and outs of your “story.” However, to make your meetings successful, you’ll want to be aware of a few more tips for success. Here are 10 things you should keep in mind during those IPO road show meetings.