Talk about timing. On the very day we post the IPO advice of Athenahealth CEO Jonathan Bush, Jr.—in an article that happens to mention the current tough economic climate for IPOs—Athenahealth (NASDAQ:ATHN) announces it is shelving its plans for a secondary public offering. And, you guessed it, the company is citing the current tough economic climate.
Athenahealth announced its SPO, under which the company and selling shareholders that included Oak Investment Partners and Cardinal Partners planned to offer just over 3 million common shares, back in early January. But on the heels of recent decisions by both BG Medicine and Elixir Pharmaceuticals to postpone their IPOs, it is hardly a surprise to see the economic foul weather extending into the secondary market.
Be sure to check out Bush’s IPO pearls of wisdom—you’ll see what I mean when I say I guess he won’t be getting out of his lockup early, and he won’t be taking any cool jet rides with investment bankers and their “really nice scotch” anytime soon. In late afternoon trading, though, Athenahealth’s stock was on a nice little ride of its own, up $1.67, or just over 5 percent, at $33.07.
Author: Robert Buderi
Bob is Xconomy's founder and chairman. He is one of the country's foremost journalists covering business and technology. As a noted author and magazine editor, he is a sought-after commentator on innovation and global competitiveness. Before taking his most recent position as a research fellow in MIT's Center for International Studies, Bob served as Editor in Chief of MIT's Technology Review, then a 10-times-a-year publication with a circulation of 315,000. Bob led the magazine to numerous editorial and design awards and oversaw its expansion into three foreign editions, electronic newsletters, and highly successful conferences. As BusinessWeek's technology editor, he shared in the 1992 National Magazine Award for The Quality Imperative.
Bob is the author of four books about technology and innovation. Naval Innovation for the 21st Century (2013) is a post-Cold War account of the Office of Naval Research. Guanxi (2006) focuses on Microsoft's Beijing research lab as a metaphor for global competitiveness. Engines of Tomorrow (2000) describes the evolution of corporate research. The Invention That Changed the World (1996) covered a secret lab at MIT during WWII. Bob served on the Council on Competitiveness-sponsored National Innovation Initiative and is an advisor to the Draper Prize Nominating Committee. He has been a regular guest of CNBC's Strategy Session and has spoken about innovation at many venues, including the Business Council, Amazon, eBay, Google, IBM, and Microsoft.
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