Tips for taking the path toward an IPO
Freelancer Barbara Nasto reports from the Finance track:
During the Tuesday morning session “On Becoming a Public Company,” Annette Grimaldi, head of life sciences investment banking for New York-based Jeffries and Co., described the ideal biotech IPO candidate. Desirable characteristics included a late-stage novel product that addresses an unmet clinical need, a large market for that novel product to which the company retains all rights, cash in the bank and clearly defined interim milestone goals. Grimaldi also mentioned that such a company does not exist. Her advice for biotechs considering an IPO? "Have a clear sense of self and have the story down before you enter the market. Be able to define what you are and what you want to be when you grow up. Also consider how to create value for the investors.”
The session included other interesting perspectives from operational and legal and execs with first-hand IPO experience. Regarding timing, “You have to do it [hold the IPO] when you don't have to do it," according to Affymax CEO Arlene Morris. Laura Berezin, an attorney with Cooley Godward, advises companies to start socializing early, and getting free advice from lawyers and bankers. In addition, “Have a complete management team. Though you may be tempted to cut corners on this, it’s important to be staffed up well ahead of the IPO." Finally, Michael Lytton, a general partner with Oxford Bioscience Partners, stressed the importance of retaining some of your commercial rights even after your company has been sold.
