IPO market freezes out two more health care startups
Poor market conditions have dashed the IPO hopes of two more health care companies — clinical data provider Epocrates and cardiovascular drug developer Aegerion Pharmaecuticals. This makes 38 companies across all sectors that have had to pull their public filings this year, reports VentureWire. Out of those that have made it through the gate, only three have been in lifescience.
Based in San Mateo, Calif., Epocrates filed for its $75 million IPO back in April. The cancellation won’t have any major impact on the company, which is already profitable, and excecutives say they will reconsider going public when conditions improve. The company provides mobile and web-based tools for physicians to use in clinical settings. It has raised about $46 million to date over three rounds, the most recent amounting to $6.4 million in 2002. Its investors include Goldman Sachs, InterWest Partners, Draper Fisher Jurvetson, Three Arch Partners, Bay City Capital and New Leaf Venture Partners.
This is the second IPO withdrawal for Aegerion, headquartered in Bridgewater, N.J. It initially filed in March last year but pulled its plans due to low share prices. It refiled in November, but the market has remained too unfavorable. Like Epocrates, it’s not hurting for money, with enough venture backing to push its leading drug candidates through clinical trials. In September, it raised $9 million in convertible bridge funding that will sustain it through 2009 — bringing its total venture financing to $60 million. Its investors include Advent International, Alta Partners, Index Ventures, Mitsubishi, MVM Life Science Partners, Red Abbey Venture Partners and Hercules Technology Growth Capital.
Next Story: DotBlu snags $2M for gaming social network
Previous Story: BlueLithium founder Gurbaksh Chahal keeps his millions “Secret” for once
About the Author, Camille Ricketts
Camille is the lead writer for GreenBeat. She came to VentureBeat from Google where she worked on its traditional platforms team, particularly in TV. Before that, she was a reporter for the Wall Street Journal in New York and London. Follow her on Twitter at @camillericketts, and follow VentureBeat on Twitter at @venturebeat.
With GreenBeat 2009, VentureBeat's all-star conference on all things Smart Grid, coming up in November, Camille will be expanding coverage of this exciting space. Stay up to date by following @greenbeat2009 on Twitter or by becoming a fan of the event on Facebook here.