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Biotech Investors Flock to Follow-On Offerings as IPOs Slow

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Drugmakers are raising money at levels not seen in at least a decade, with many of the same biotechnology firms that led last year’s surge in initial public offerings now doing follow-on stock sales to capitalize on the industry’s boom while they can.

In the first quarter, biotech and pharmaceutical companies used 93 share sales to reap $18.7 billion, three times more than in 2014 and the biggest total in at least 10 years, according to data compiled by Bloomberg. Such follow-on sales let already public companies fund new investments or let insiders cash out.