Royalty Pharma, which is listed on the Nasdaq Tuesday, fixed to the upper end of $28 per share to raise $2.175 billion in its offering.
The biopharmaceutical royalty ipo of the company is the most expensive so far this year, beating out Warner Music’s $ 2 billion offering earlier this month, and the second most expensive for a pharmaceutical company. ZoomInfo, Shift4 Payments, Vroom and Azek are among other companies to recently go public, despite the sars coronavirus pandemic, the impact on the market. After a brutal first half of 2020, the date on which the travel and vacation industry was practically stopped, Airbnb may try its much-anticipated IPO later this year, because the market and the economy focus on recovery.
The shares of the Royalty Pharma made its debut at $44 on the market, and increased 1% on the day. The price of the shares has grown another 9% to close at $48.61 on Wednesday.
Royalty Pharma invests in companies with promising drug candidates to help drugmakers get their products on the market, from which it collects royalties.
Cramer pointed out that the Royalty has an interest in nearly a dozen of billion of dollars of drugs, including Vertex Pharmaceuticals for the treatment of cystic fibrosis, Biogen therapy of multiple sclerosis, AbbVie’s products in oncology and Gilead Sciences for HIV prophylaxis.
The host has also said the company is in a “golden age of medical research,” the echo of the words of Royal Pharma’s chief executive Pablo Legoretta.
“Put it all together and Royalty Pharma seems to be that the best way to play the biotechnology, with the same kind of increase that comes from speculate on these small players, but less of a risk because the portfolio is diversified across the industry,” Cramer said.