While biotech’s fortunes have soured on Wall Street this week, the sector’s biggest IPO of the year went off without a hitch Thursday, suggesting investors haven’t lost their appetite for high-risk, high-reward science.
Allogene Therapeutics (ALLO), a company focused on cancer, raised more than $300 million in its market debut, securing a valuation of roughly $2.5 billion. And the company got a warm reception in early trading, rising more than 30 percent by mid-morning.
That’s welcome news for NGM Pharmaceuticals and Orchard Therapeutics, a pair of private biotech companies with billion-dollar valuations and plans to go public this year.
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