The IPO Buzz: Big Dose of Health-Care Deals

This week’s IPO calendar comes to life with 11 deals expecting to raise $3.15 billion. The health-care sector represents eight of the 11 IPOs on tap – a trend that’s a blast from the past. But that’s not the only retro item on this week’s radar.

Washington, D.C., is in the headlines again with the shutdown of the federal government over the weekend after a congressional stalemate on such thorny issues as immigration reform and children’s health insurance. The last time this happened was October 2013, when the U.S. government’s wheels stopped turning from Oct. 1-17. What happened to the IPO market then? Nothing.

The U.S. Securities and Exchange Commission’s filings tell the story:

Flashback to October 2013

  • The week of Oct. 1: Seven IPOs were priced.
  • The week of Oct. 7: Seven IPOs were priced.
  • The week of Oct. 14: Five IPOs were priced.
  • For all of October 2013: 31 IPOs were priced.
  • For the year 2013: 218 IPOs were priced.

Check out the performance of the U.S. stock market, measured by the Nasdaq Composite Index at the close:

  • Oct. 1, 2013:  3,817.98
  • Oct. 17, 2013: 3,863.15, up 1.18 percent from Oct. 1
  • Dec. 31, 2013: 4,176.59, up 9.39 percent from Oct. 1
  • On Friday, Jan. 19, 2018: 7,336.38, up 92.2 percent from Oct. 1, 2013.

Biggest Week since Mid-2015

This week’s calendar of 11 IPOs is the largest since the week of June 22, 2015, when 13 deals – including five from the health-care sector – were in the offing.

Let’s take a look at this week’s eight health-care IPOs:

Adial Pharmaceuticals (ADIL – proposed) is a clinical-stage biopharmaceutical company developing genetically targeted treatments for alcohol-use disorder.

ARMO BioSciences (ARMO – proposed) is a late-stage immuno-oncology company developing a pipeline of novel proprietary product candidates to activate cancer patients’ immune systems to recognize and eradicate tumors.

Entera Bio Ltd. (ENTX – proposed) is a clinical-stage biopharmaceutical company focused on developing and commercializing orally delivered large molecule therapeutics for orphan diseases and other significant unmet medical needs.

Eyenovia (EYEN – proposed) is a clinical-stage biopharmaceutical company developing a pipeline of ophthalmology products using its patented piezo-print technology to deliver micro-therapeutics topically to the eye.

Menlo Therapeutics (MNLO – proposed) is a late‑stage biopharmaceutical company developing and commercializing serlopitant to treat itching associated with atopic dermatitis and psoriasis. It’s also testing this drug to treat chronic cough that persists for more than eight weeks.

ProLung (LUNG – proposed) is a medical technology company developing a predictive non-invasive risk test for early-stage lung cancer – referred to as the “ProLung Test.”

resTORbio (TORC – proposed) is a clinical-stage biopharmaceutical company focused on the development and commercialization of novel therapeutics to treat diseases related to aging.

Solid Biosciences (SLDB – proposed) is a life-sciences company intent on finding a cure for Duchenne muscular dystrophy, or DMD, a genetic muscle-wasting disease mostly affecting boys; its leading product candidate is a gene-transfer candidate.

Power, Payments and Gambling

Gates Industrial (GTES – proposed) is a manufacturer of highly engineered power transmission and fluid power solutions. The company offers a portfolio of products to diverse replacement- channel customers and original equipment manufacturers; most of its revenue comes from replacement channels.

PagSeguro Digital (PAGS – proposed) provides financial technology services in Brazil by offering multiple digital payment solutions, in-person payments via point-of-sale devices, free digital accounts and prepaid cards.

PlayAGS(AGS – proposed) supplies the gaming industry with products and services, including electronic gaming machines, slot machines, video bingo machines and other electronic gaming devices. It also provides server-based systems and back-office systems used by casinos and other gaming locations.

 (For more information about these companies and others on the IPO calendar, please check the profiles found on’s website.)

Next Week

For the week of Jan. 29, 2018, there are four deals on tap aiming to raise $2.1 billion.

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 opinions.