"The primary market is more challenging than other financing options, but strong and creative companies can still aim for an IPO," JPMorgan Chase co-manager of global healthcare investment banking Robert Huffines told "Globes". Huffines is in Israel as a keynote speaker at the Israel Life Sciences Industry (ILSI) 2010 Biomed Conference in Tel Aviv.
Huffines, however, cautions about investors' reactions to offerings, saying, "Negotiations on the price is a lot harder."
The number of Nasdaq IPOs in April has already exceeded the number for 2009 as a whole. Medical devices holding company D Medical Industries Ltd. (TASE:DMDC) is in the process of an offering on Nasdaq, but the euro crisis may upset these plans.
Huffines believes that, even now, despite market volatility, the capital market is flexible. He also believes, however, that M&As in the life sciences will be more frequent than IPOs. "Financing and M&A activity is strong," he says.
Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) has acquired Germany's Ratiopharm. Do you think that generic rivals will respond by making their own acquisitions to narrow the gap in market share?
Huffines: "I think so. In general, there is strong interest in generics, especially in emerging markets, because of generics important role in the drug market. Interest is also shown by innovative pharmaceutical companies."
This is not Huffines first visit to Israel. During the present visit, he will also meet executives of Israeli life sciences companies, although he declined to disclose their names. "I look forward to my visits to Israel because Israel is known as an area of innovation. I'll be pleased to meet people and companies at the conference," he said.
Published by Globes [online], Israel business news - www.globes-online.com - on June 14, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010