The Cross-Border Biotech Blog

Biotechnology, Health and Business in Canada, the United States and Worldwide

Biotech’s Murky IPO Window Increases M&A Attractiveness

A recent press release from Burrill & Company points out that only 1 of 8 U.S. biotech IPOs in 2010 is currently trading above its IPO price. IMRIS was the last Canadian biotech IPO, completed in November 2007 at $6.00, and it is currently trading at $5.50 after dipping under $2 in late 2008. Facing these difficult public markets and limited treasuries, it is not surprising to see Canadian VCs opting to sell companies in their portfolios, including the recent sales of two companies with revenues. Toronto’s Visualsonics was sold to U.S.-based SonoSite for about 2.4 times Visualsonics’ trailing 12-month sales of $30 M. Montreal’s Resonant Medical was sold to Swedish company Elekta for about 3 times expected 2010/2011 revenue of $10 M.

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