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Healthcare Companies Dominate IPO Underwriting

The initial public offering market is increasingly becoming a haven for healthcare industry financing. According to a review of IPO underwriting volume conducted by S&P Capital IQ’s Global Markets Intelligence research group, the proportion of healthcare companies relative to annual IPO deal count is running at record levels.

Specifically, of 105 IPOs priced to date this year, 44, or 41.9%, comes from the healthcare sector. That compares to a 40.1% market share healthcare companies enjoyed among all IPOs priced in the United States during 2014 based upon 114 healthcare IPOs completed last year when 284 new issues were priced.

Also, prior to 2013’s results, when 24.4% of the number of IPOs priced in the US came from the healthcare sector, the last time the proportion of healthcare companies comprised more than 20% of IPOs was in 2004 when 19, or 22.4% of IPOs priced in the US that year, came from the healthcare sector.

Among healthcare new issues priced this year include a $600 million issue by Inovalon Holdings Inc., which provides cloud-based analytics to the healthcare industry, a $315 million IPO by clinical stage biopharmaceutical Axovant Sciences Ltd. and a $222.5 million issue completed by Press Ganey Holdings, Inc. Among healthcare companies recently filing IPOs include a proposed $161 million issue by biotechnology firm NantKwest, Inc. and a scheduled $115 million IPO by Global Blood Therapeutics, Inc.

U.S. IPOs - Healthcare

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