STAT+: An inside look at PIPEs, the financing trend that has biotech abuzz
For developmental-stage biotechs, PIPEs have become an increasingly common method to raise new capital, eclipsing traditional follow-on stock offerings.
Biotech is awash in PIPEs.
The numbers behind these privately negotiated purchases of public-company stock are astounding. By my count, there have been 30 PIPE transactions involving public biotechs and institutional investors (mostly hedge funds) that have raised $4 billion in the first two months of the year.
Just this week, five biotechs have brought in a combined $950 million via PIPEs, including Denali Therapeutics raising $500 million, the largest such financing this year. Crinetics Pharmaceuticals raised $350 million.
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