0:29 ET Two biotech IPOs price poorly: ACAD, CRTX : A couple of biotech IPOs price well below range today. Acadia Pharma (ACAD 7.00), and Critical Therapeutics (CRTX 7.00) both price at $7, well below their initial ranges of $12-$14 and $11-$13. The cos had subsequently reduced their ranges to $7-$8... Acadia focuses on small molecule drugs for the treatment of central nervous system disorders. It has five drug programs in clinical and preclinical development. The co has 3 clinical programs for treatment-induced dysfunction in Parkinson's disease currently in Phase II clinical trials... CRTX focuses on products designed to treat asthma and critical care diseases through the regulation of the body's inflammatory response. Its most advanced product is Zyflo, a tablet formulation of zileuton, which the FDA approved in 1996 for the prevention and chronic treatment of asthma. The co licensed from Abbott Labs exclusive worldwide rights to Zyflo. The co is in the process of changing manufacturing sites for Zyflo, and subject to FDA approval of these sites, it expects to begin selling Zyflo in the first half of 2005.... As with most small cap biotechs, the cos have little financials to speak of. The pricing on these deals are good examples of investors' distaste for biotech IPOs these days mainly because there have been so many this year, roughly one-third of IPOs in 2004. Also, two more are coming out tomorrow: ANLY and INHX, which does not bode well for them... ACAD and CRTX deal sizes are 5 mln (BofA and Piper are co-leads) and 6 mln (SG Cowen is the lead) and begin trading this morning... A thought to keep in mind is to keep these battered biotech IPOs in the back of your mind for biotech rallies later this year as many traders will forget these names.
people want their money safe in times of instability and biotech aint stable
What are you talking about? You must be a bad investor......I have made a million on BIIB in the past year a and a half a mill on ELN since December??? What stocks are you trading? A good friend recomended this stock to me and Im just finding the right possition to get in. I only trade in airlines and biotech and Im looking out my office window right now to nothing but beach and I have never touched a tech stock.