The proverbial biotech IPO window has been open for some time now, but it appears to have grown to the size of an airplane hangar door, allowing almost any biotech to go public at astonishingly high valuations.
Ultragenyx Pharmaceutical (NASDAQ:RARE) doubled on the day of its IPO and has continued to rise since. As you can probably guess from the ticker, Ultragenyx is developing drugs for orphan indications.
Dicerna Pharmaceuticals (NASDAQ:DRNA) tripled after its IPO. The biotech, which is also focused on rare diseases, pulled back a little since its first day of trading, but Dicerna still trades well above where it priced its IPO.
In the video below, Fool contributor Brian Orelli and health-care bureau chief Max Macaluso discuss the progression of biotech investors from large-cap biotechs to small-cap biotechs and, eventually, as they seek more risk, to companies that have just gone public.
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Brian Orelli, Max Macaluso, and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.