viernes, 16 de noviembre de 2018

Centrexion Therapeutics postpones $75 million IPO - Nasdaq.com

Centrexion Therapeutics postpones $75 million IPO - Nasdaq.com

The Readout

Damian Garde



Spare a thought for the chile-pepper IPO


Exactly seven days ago we mentioned a company called Centrexion, which planned to go public this week. If the IPO was success, “it'll help embolden other IPO hopefuls,” we wrote. But “if, like its recent predecessors, the company takes a valuation haircut and then struggles on Day One, biotech's narrative going into the winter is unlikely to improve.”

Well anyway Centrexion postponed its IPO altogether yesterday, and needless to say that’s not great for sentiment. The company, developing pain therapies inspired by the active ingredient in spicy peppers, was not a fringe startup riding market coattails. Its CEO used to run Pfizer. Its investors were blue-chip VCs, and its underwriters were major banks.

Centrexion’s whiff, coupled with the lagging performance of biotech across the board, doesn’t bode well for companies waiting in the wings with IPO ambitions of their own.

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