The biotech market is thriving right now, and for plenty of good reasons: countless companies have been enjoying successful IPOs this year, with MorphoSys AG ADR (NASDAQ:MOR) being the latest to join them. The company’s market debut reaped in hundreds of millions of dollars, giving it a healthy dose of capital to invest in its operations as it moves forward, and the biotech scene is already alight with rumors about the aspiring business’ future.
Here’s the need-to-know information surrounding MorphoSys’ debut, and the critical facts about its daily operations and industry that you’ll want to know before throwing your money behind it.
A massive IPO haul
The good news for MorphoSys is that it won’t be wanting for money to expand its operations anytime soon; the company’s IPO reaped in a total of at least $239 million, according to early reports. The German biotech company’s blockbuster debut will also no doubt draw in even more investors as news of its successful IPO circulates around the market, meaning you should expect MorphoSys to be a hot name on investor’s lips in the near-future. The IPO, which reaped in at least $50 million more than the company’s executives expected early on, illustrates just how thriving the biotech scene is right now.
Like most biotech companies who are hoping to scoop up the interest of investors around the globe, MorphoSys has been posting net losses since its inception, according to filings the company made with the SEC. The biopharmaceutical company is involved in the development of some complex drugs and treatment solutions, meaning its team members will need ample time to work the kinks out of the products they hope to bring to market, but the successful completion of clinical testing trials for some of MorphoSys’ more aspiring products could prove to be incredibly lucrative for the company in the long-term. Thus, tech investors looking for a short-term steal may not be allured by MorphoSys, but more biotech-orientated investors used to biding their time in the pursuit of outrageous profits will fit right in with MorphoSys’ shareholders.
With an accumulated deficit nearing 100 million euros, however, MorphoSys may find it necessary in the short-term to produce more reassuring results that can help shareholders sleep more soundly at night. In those regards, MorphoSys probably won’t be too challenged when it comes to producing positive news. The company only recently announced it would be seeking the accelerated approval of one of its antibody-based products, which could hit the market sooner than expected. If MorphoSys comes through and passes its clinical trials with the FDA with flying colors, expect the company’s share prices to make an unexpected leap skywards in the near-future.
With the FDA seemingly intent on working hand in hand with MorphoSys until its viable products are on the shelves on the market, investors have plenty of reason to believe the company’s long-term arc is bending toward success. But are there skeletons lurking in the closet that potential shareholders should know about before throwing their money in the pot?
Commercialization troubles lie ahead
While MorphoSys has seen some impressive progress thus far in the carrying out of the clinical trials the company needs to pass before it can bring any biotech drug products to the market, there are reasons to believe that it will face the traditional hurdles on the road towards commercialization that other biotech companies have. As the company’s prospectus makes it clear in its risk section, after all, it’s not exempt from the finnicky nature of the biotech market. Consumers often make peculiar choices when it comes to their drug purchases, meaning whatever final verdict is handed down from the FDA will prove instrumental towards MorphoSys’ eventual success or failure. Outside of traditional industry worries, however, MorphoSys largely has a clean record that should encourage confidence in investors interested in it.
The fate of biotech companies is more often than not controlled by how well they’re faring in clinical trials, after all, and the news from MorphoSys is good on that front. The company could have a product out to combat large B cell Lymphoma sooner, rather than later, and that’s one of the hottest diseases in the biotech market for researchers to scrutinize. The company has 28 disease treatment solutions in clinical development presently, according to its website, which is a healthy figure that should assure investors it has a diversified roster, and has other product candidates it could be bringing to the FDA for testing soon, too. Don’t let MorphoSys slip under your radar undetected. The aspiring biotech company with a specialty in antibodies has some serious potential on the market, and its clinical trials thus far have proven that the company isn’t offering investors smoke and mirrors. Provided MorphoSys’ clinical trials continue to fare well, expect the company’s blockbuster debut to be only the start of its success.