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Quarterly Update: The Healthcare Part III

Every time we think we’re out, they pull us back in!

In case it’s unclear – and unless you’ve read Ipreo’s Quarterly US Update: Quarter Ended September 30, 2015 and multiple posts on this very blog, it may well be – we’re using that famous quote from The Godfather Part III to reference the inexplicable hold the Healthcare sector has on the Ipreo Blog. Which is, of course, not a hold Healthcare has on this blog at all, but one Healthcare has, and has had for the better part of the last five years, on the new issuance market.


We’ve written about Healthcare a lot, not because we have a horse in the race, but because it’s been impossible to write about the race without mentioning the horse that is winning it. And Healthcare keeps winning it. Last year was a record year all around, and everyone remembers the splash Alibaba made, but Healthcare’s 102 IPOs was a large part of 2015’s big numbers too.

And it wasn’t just last year. Healthcare led all sectors in total IPOs in 2013, 2014, and is on pace to do so in 2015. Thanks to last year’s 100+, the healthcare sector has also seen the most debuts and the highest total proceeds since 2010. And three quarters into 2015, the trend continues.

Unfortunately, not even Healthcare could save this last quarter, not in the face of the typical summer slowdown and the startling market volatility we saw in late August. The quarter’s IPO deal count fell to 31 for $5.7B in proceeds, well below the prior-year period’s 55 deals for $40.6B which was bolstered by Alibaba’s historic offering.

The three largest debuts came from Blue Buffalo Pet Products, Inc. ($778.1M), SunEdison Emerging Markets Yield, Inc. (675.0M), and Performance Food Group Co. ($275.5M). While Healthcare dominated the deal count debuting 16 new issuances, representing over half of all new debuts in the quarter, and
raising a total of $2.2B in the quarter for 39.5% of total proceeds in the quarter, like everywhere else, the sector suffered in comparison to the second quarter, during which it fielded 25 IPOs for 20.1% of total proceeds.

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