Analyst Points At 3 Upcoming Biotech Lock-Up Expirations

Lock-ups on three biotech companies will expire later this quarter and an analyst warned that their shares could then lag the market. Cantor Fitzgerald's Mara Goldstein said that following lockup expirations, companies in the sector on average underperform the Nasdaq Biotechnology Index by about 25 percent in the ensuing 30 days. Xenon Pharmaceuticals Inc.'s XENE lockup on nearly 62 percent of its shares outstanding expires May 3. The company went public in November and its shares have since gained about 62 percent. Juno Therapeutics Inc. JUNO will see a lockup on 85 percent of its shares outstanding expire June 16. The company's shares have gained about 84 percent since its initial public offering in December. Cellectis SA's CLLS lockup on 36 percent of its shares outstanding expires June 22. Its shares are off about 18 percent since its March 24 IPO. Goldstein said that 92 biotech or specialty drug companies with relatively recent lockup expirations gained an average of 3 percent in the subsequent 30 days, versus an average gain of 4 percent during the same periods for the Nasdaq Biotechnology Index. In a more general roundup of recent biotech performance, Goldstein said small-cap oncology companies have gained an average of 11 percent and seen the strongest stock performance among the group during the quarter to date. Gains in the subsector during the past two weeks have been lead by Curis Inc. CRIS, Exelixis Inc.EXEL, Heat Biologics Inc. HTBX and Synta Pharmaceuticals Corp. SNTA, according to Goldstein.