News

Growth Capital Executive Moves

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H.C. Wainwright Strengthens Biotech and Cap Markets Teams with Hires of MLV Executives

H.C. Wainwright & Co. announced the addition of two senior professionals to further enhance its expertise in biotechnology equity research and capital markets. George B. Zavoico, Ph.D. joins HCW in equity research as Managing Director, Senior Biotechnology Analyst.  Prior to joining HCW, Dr. Zavoico was a Managing Director, Life Sciences Research Analyst at MLV & Co. and previously had been a Senior Life Sciences Research Analyst at Cantor Fitzgerald & Co.  Prior to becoming a sell-side analyst in 2003, Dr. Zavoico had a distinguished career in the pharmaceutical and biotechnology industry in consulting, competitive intelligence, regulatory affairs and medical and technical writing.  He has significant experience in basic scientific research and drug discovery in both academia and industry. John A. Ray III joins HCW as Director of Institutional Sales & Trading.  Mr. Ray will lead HCW's efforts in building its at-the-market (ATM) offering business.  Prior to joining HCW, Mr. Ray was also at MLV & Co., where he specialized in ATM issuance and trading in the biotech, resources and technology industries.  Previously, Mr. Ray was a senior institutional trader at WM Smith & Co., Hudson Securities, Knight Securities and Herzog, Heine & Geduld.

Markets

Life Science Issuers Crowd the Best and Worst Performing Deals of Year

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The volatile biotech sector dominates the year’s top 40 best and worst performing growth equity private placement (EPP) deals, as investors prove the adage that a good hit will take you far – as well as its converse, that a miss can be devastating. Outside of life sciences companies, internet media and alternative energy companies rewarded investors while conventional energy and mining companies proved treacherous. Registered and unregistered EPPs by biotech, healthcare and pharmaceutical development companies comprise 46% of the best and worst performing deals by emerging growth companies in 2013, according to data compiled by Sagient Research and analyzed by Growth Capital Investor. (For the complete list of best and worst deals, see pages 12-13 of the current issue of Growth Capital Investor.)

Life science issuers closed 44 out of 80 combined best performing registered and unregistered private placements as of December 15. They also closed 30 of the 80 worst performing deals to date in 2013.

Markets
Biotech

Focus on IPOs Dents Life Science EPP Dollar Volume

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In a year shaping up to be known as “life science bulls gone wild,” a fervor that has fueled a gusher of initial public offerings and rising stock prices, publicly traded growth companies in the industry will end 2013 with fewer equity private placement dollars despite brisk deal making. Biotech and pharmaceutical companies raised $2.7 billion in 120 growth EPP transactions for an average of $22.5 million per deal through early December in 2013, according to PlacementTracker, a service of Sagient Research. That’s a substantial decrease from the $4.1 billion that the issuers raised in 134 placements for an average of $30.6 million in all of 2012. (Growth EPPs are offerings of a least $1 million of stock or equity-linked debt that feature fixed purchase, conversion and warrant exercise price terms. The data includes only growth companies that have market capitalizations from $10 million to $1 billion and a share price of at least $1 at closing.)

Follow-on offerings also have outpaced private placements: Biotech and pharmaceutical issuers have raised nearly $2 billion in 33 transactions this year versus $887 million in 16 deals in 2012, according to PlacementTracker. Yet biotech and pharmaceutical issuers continued to increase their use of at-the-market offerings in 2013, giving them more flexibility to raise cash in the coming months.

Markets
OTCQX

OTCQX Graduates Record Number of Companies to Exchanges

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OTC Markets reported that eight companies have graduated from the market’s QX listing level to U.S. exchanges this year, up sharply over the last three years. The latest up-list came last week, when Energy Fuels (UUUU) joined the NYSE MKT. The $104 million market cap uranium producer ended its first week of exchange trading up 1.8% on above average volume of 30,700 shares. Energy Fuels follows earlier up-listers Altisource Asset Management (AAMC), American Eagle Energy (AMZG), B2Gold (BTG), Empire Resources (ERS), LiqTech International (LIQT), Organovo Holdings (ONVO) and Tiptree Financial (TIPT).  That makes 2013 the best year for up-listings since the OTC created the upper tier in 2007.