Jun 3, 2021 - Economy

Chamath Palihapitiya's latest SPAC attack targets biotech

Illustration of a money clip full of checks

Illustration: Eniola Odetunde/Axios

Social Capital Suvretta, a new biotech SPAC platform led by Chamath Palihapitiya, filed for four IPOs, each with a $200 million target.

Why it matters: Chamath isn't backing down in the face of recent criticism, or even heeding his own warning that the current SPAC market needs more oversight.

Details: Each of the four Social Capital Suvretta SPACs has a specific industry focus: Neurology (I), oncology (II), "organ space subsector (III)" and immunology (IV).

  • All of them are warrantless with Morgan Stanley as lead underwriter, which is a departure from the six tech-focused Social Capital Hedosophia SPACs, each of which had warrants and used Credit Suisse.

The bottom line: "In biotech, there have been 43 SPACs to price or announce an intent to merge, according to the Endpoints News tally. That’s resulted in a combined raise of $14.75 billion, more than double that of traditional IPOs." EndPoints News writes.

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