The biggest biotech news out of Washington in recent months was the Jumpstart Our Business Startups (JOBS) Act, which passed Congress overwhelmingly and was signed into law by President Obama in April. For those not familiar, the JOBS Act creates a new category of issuers, called “emerging growth companies” (EGCs), which is defined as newly public companies with than $1 billion in annual revenues and a public float below $700 million.
EGCs are given a five-year transition in to the public market via an IPO On-Ramp and are provided exemptions from certain burdensome regulations. EGCs also benefit from relaxed “gun-jumping” restrictions and are allowed to file a confidential draft registration statement with the SEC before starting the IPO process. The JOBS Act also reforms SEC Regulation A to give private companies early-stage access to capital via direct public offerings and expands the potential investor base through reforms to SEC Regulation D and the SEC private shareholder limit.
If you are interested in learning more, BIO is hosting an educational webinar series in September and October on key provisions contained in the new law. These webinars are scheduled for September 18 and October 3. For more information on the webinars, please email Charles Crain at firstname.lastname@example.org.
Of the three most recent companies to file for an IPO, all stated in their S-1s that they plan to take advantage of provisions from the JOBS Act.
The companies who have IPO-ed thus far in 2012 are listed below:
- Hyperion Therapeutics (HPTX)
- Durata Therapeutics (DRTX)
- Tesaro Inc. (TSRO)
- Supernus Pharmaceuticals Inc. (SUPN)
- Merrimack Pharmaceuticals (MACK)
- Ceres Inc. (CERE)
- ChemoCentryx (CCXI)
- Cempra Pharmaceuticals (CEMP)
- Versastem (VSTM)
While this piece of news might prove promising for some, industry insiders understand the squeeze on potential investors. One of the biggest constraints on the industry’s ecosystem is the bandwidth of individual, active investors. The bandwidth issue is as or more important of a constraint on the number of biotechs that get funded than the amount of capital itself. Hear more on this topic from Bruce Booth, Partner, Atlas Ventures, Forbes and LifeSciVC blogger, here.
With the challenging investment environment in mind, BIO will host the eleventh annual BIO Investor Forum, October 9-10, in San Francisco, CA. The BIO Investor Forum is a must attend event for public and private market investors, research analysts, investment bankers, and industry executives focused on investment and business development opportunities in the life sciences.
Investors attend to hear from and meet with executives at the top life sciences growth companies, evaluate fresh investment opportunities, benefit from candid panel discussions with leading clinical experts and investigators with insights on pipeline research and clinical practice and get a “big picture” overview of the industry.
Companies attend to meet one-on-one with new and current investors, analysts and partnering companies, get the pulse on the latest life sciences investment trends, showcase their company story in presentations to qualified investors and network with peers, investors and potential partners.
Highlights from the 2011 Investor Forum include:
- 35 companies participated in the “Discovery Track which featured a select group of entrepreneurs who chose to first introducer their startup companies to the national investment community at the BIO Investor Forum.
- Close to 900 one-on-one meetings scheduled – 88% between biotech companies and investors.
- Over 3,300 meeting requests were sent by companies and investors alike. Approximately 200 investors participated in the one-on-one meetings.
- 118 presenting companies, of which 98% were C-suite level executives. International companies presented from Japan, Austria, Switzerland, Singapore and Australia.
To learn more about the 2012 BIO Investor Forum, including registration and program information, please visit here.