Jun 3, 2021 - Economy & Business
Chamath Palihapitiya's latest SPAC attack targets biotech
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.