FINANCE ROUNDUP: Will VC Be Last Man Standing If Biotech Bubble Bursts?
This article was originally published in Scrip
The bad news about the rapid rise in biotechnology company valuations? It will end eventually. The good news? While initial public offerings may no longer be an option for some pre-commercial companies to fund drug development, several venture capital investors recently raised new funds to back biotech startups and support follow-on financing rounds.
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Private Company Edition: Gossamer, Ascentage and Alector continued the trend of large venture capital rounds, recently raising $230m, $150m and $133m, respectively. Led by former Receptos executives, Gossamer has multiple clinical trials planned, but continues to keep details of its drug candidates under wraps.
Medicxi's new $300m venture fund will benefit from the expertise of former GSK R&D leader Moncef Slaoui, while ex-CEO Witty will inform portfolio strategy at Hatteras. Also, Kaleido hires past Cubist CEO and brings VC funding to $65m, while Gilead sells $3bn in debt to fund Kite deal.
Lilly will save $500m annually starting in 2018 after $1.2bn in layoff-related costs to reinvest in new products. Also, Cytori halves its headcount; VC OrbiMed closed a $551m Asia fund; and Insmed capitalizes on positive data.