Kodiak Reminds Perceptive Advisors of the Risks of IPOs

The hedge fund headed by Joseph Edelman more than doubled its stake in the biopharmaceutical company.

Illustration by II

Illustration by II

This was no doubt a bittersweet deal for Joseph Edelman’s Perceptive Advisors.

When Kodiak Sciences was gearing up to go public earlier this month, the developmental-stage biopharmaceutical company planned to offer 9 million shares for between $13 and $15 per share.

But when it finally began trading on October 4, the IPO was priced at just $10 per share.

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