Calculating ChemoCentryx

The experience of ChemoCentryx Inc. provides more evidence that preclinical-stage Verastem Inc.'s bumped up IPO and $202.3 million valuation isn't a measuring stick for biotechs looking to go public. Indeed, investors took a pound of flesh from the Phase III autoimmune and cancer company, which raised $45 million through the sale of 4.5 million shares at $10 - well below its proposed range of $14-$16.

Last week's offering valued ChemoCentryx at $352.5 million despite the company's anchor partnership with GlaxoSmithKline plc and a quartet of clinical-stage molecules. At $15, ChemoCentryx would have raised $60 million and been valued at $510.3 million...