The IPO Buzz: Dance of the Drug Sector’s IPOs

The drug sector produced 44 of this year’s 144 IPOs, according to the U.S. Securities and Exchange filings. Worth noting: The sector’s IPO aftermarket performance has outdone all the major stock market indexes, as well as the overall 2014 IPO market.
As of Friday’s close on July 11, 2014, the 44 pharmaceutical IPOs were UP 22.8 percent on average from their initial offering prices. The Dow Jones Industrial Average was UP 2.21 percent for the year, the S&P 500 Index was UP 6.45 percent and the Nasdaq Composite Index was UP 5.72 percent. The 144 IPOs priced in 2014 were UP on average 15.66 percent.
Walking on Sunshine
This brings us to this week’s calendar of 11 deals. Interestingly enough, IPO experts are looking at two non-pharmaceutical offerings as “IPOs of Interest.” One of these companies – TerraForm Power (TERP – proposed) – is in the solar energy business, a theme that should be easy to remember for fans of the 1980s band, Katrina and the Waves. The other company – Trupanion (TRUP – proposed) – offers pet health insurance.
TerraForm Power is a Beltsville, Maryland-based dividend growth-oriented company formed to own and operate solar power plants acquired from SunEdison and unaffiliated third parties. The company plans to pay a regular quarterly cash dividend of 22.57 cents per share. That equals 90.28 cents per share on an annualized basis to yield 4.51 percent at the mid-point of its $19- to $21-per-share price range.
(For more information, please click here: TerraForm Power)
Trupanion is a Seattle-based company providing a medical insurance plan for cats and dogs throughout the United States, Canada and Puerto Rico. 
(For more information, please click here: Trupanion) 
Tech, Drugs and Video Ads
All told, this week’s calendar of 11 deals is expected to raise about $970 million. The calendar includes three other IPOs that could catch some people’s interest: Globant S.A. (GLOB – proposed); Pfenex (PFNX – proposed) (a pharmaceutical) and TubeMogul (TUBE – proposed).
Globant S.A. was founded in 2003 in Buenos Aires, where its principal operating subsidiary is located. The company, based in Luxembourg, provides mobile, web, cloud and data technology services to clients in North America and Europe, including these household names: Google, Coca-Cola, Disney and LinkedIn.  
(For more information, please click here: Globant S.A. )
Pfenex is a San Diego-based clinical-stage biotechnology company engaged in the development of difficult to manufacture and high-value proteins, initially focused on biosimilar therapeutics, known as biosimilars. The company’s product pipeline includes a treatment for age-related macular degeneration and a treatment for multiple sclerosis. After the offering, the Dow Chemical Company will own about 34 percent of the outstanding shares and Signet Healthcare Partners will own about 23 percent of the outstanding shares.
(For more information, please click here: Pfenex)
TubeMogul is an Emeryville, California-based company providing enterprise software solutions for digital branding. The company helps clients manage their digital video ad campaigns. TubeMogul offers two platforms: Platform Direct, which allows advertisers to continuously run campaigns through a self-serve model and the other, Platform Services, which allows advertisers to specify campaign objectives.
(For more information, please click here: TubeMogul)
Looking into the week of July 21, 2014, the calendar has four deals – all pharmaceuticals – aiming to raise about $250 million. But more names could pop onto the calendar by the time that Monday, July 21, rolls around.
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.