The IPO Buzz: A Royal Money Machine

The big question in today’s financial market is: “Will IPO magic come to this week’s calendar?” Let’s take a look at last Sunday, June 7, and today.

On June 7, there were two deals on the IPO Calendar waiting to hit the runway. Fast forward to Monday morning, June 8, when the U.S. Securities and Exchange Commission’s filing window opened, and the IPO Calendar caught fire. By week’s end, nine IPOs got priced. They raised nearly $2.6 billion and scored an average opening-day gain of 40.6 percent. That’s not bad traffic from a start that was almost a standstill. This week looks much the same.

On June 14, the IPO Calendar has just one deal, but it has already attracted investors’ interest. The $1.86 billion IPO was accelerated to be priced Monday night. It was originally scheduled for pricing on Tuesday night. That’s a strong signal that the IPO is in demand.

Royalty Pharma (RPRX proposed) is scheduled to offer 70 million shares at $25 to $28 each on Monday night, June 15th, for trading Tuesday morning, June 16th. Of the 70 million shares in the IPO, 10 million are being offered by selling shareholders. This is a NASDAQ listing.

Royalty Pharma plc, based in New York City, describes itself as “the largest buyer of biopharmaceutical royalties and a leading funder of innovation across the biopharmaceutical industry,” the prospectus says. The company notes: “Since our founding in 1996, we have been pioneers in the royalty market, collaborating with innovators from academic institutions, research hospitals and not-for-profits through small and mid-cap biotechnology companies to leading global pharmaceutical companies.” Royalty Pharma funds innovation in two different ways: 1.) by co-financing late-stage clinical trials and new product launches in exchange for future royalties, and 2.) by acquiring existing royalties from the original innovators.

Its portfolio consists of royalties on more than 45 marketed therapies and three development-stage product candidates in areas such as rare diseases, cancer (oncology), cystic fibrosis, neurology, HIV, cardiology and diabetes. These drugs and product candidates are from such major names as AbbVie, Biogen, Johnson & Johnson, Gilead, Merck, Novartis and Pfizer, according to the prospectus.

(For more information on this company, please check the IPO profile on IPOScoop’s website.)

Fourth Week of June

This brings us to the week of June 22nd and the IPO Calendar is blank so far. But some names could climb onto next week’s IPO Calendar – and more could line up for this week’s launch pad – when the SEC’s filing window opens again for business on Monday, June 15th.

Stay tuned.

Disclosure: Neither the author nor anyone else on the staff has a position in any stocks mentioned, nor do we trade or invest in IPOs. The author and staff do not issue advice, recommendations or opinion.