The Costs Of Biopharmaceutical Firms Going Public In The U.S.

The purpose of this paper is to examine the process and costs associated with biopharmaceutical firms undertaking an initial public offering. It discusses the direct and opportunity costs associated with this process. It shows the historical mispricing of firms and costs associated with biopharmaceutical firms going public over the past several years. Private biopharmaceutical firms need to be aware of the process and costs of going public in order to determine if these costs are acceptable, compare these costs (and benefits) with those of other sources of funding, and better manage the IPO process.