Start-Up Quarterly Statistics, Q1 2009
This article was originally published in Start Up
Executive Summary
Highlights from the Q1 2009 review of start-up dealmaking: Fundraising in the biopharma, medical device, and in vitro diagnostics industries totaled $692 million--a 31% drop from Q1 2008 but a 25% increase from last quarter--with most of the money, $544 million, coming from the biopharma sector. There were no significant acquisitions of biopharma or in vitro diagnostic start-up companies in the first quarter of the year, but device giant Medtronic paid a total of $550 million for two start-ups. Cancer was the most popular therapeutic area for start-up alliances this quarter.
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Start-Up Quarterly Statistics, Q2 2009
Highlights from the Q2 2009 review of start-up dealmaking: Fundraising in the biopharma, medical device, and in vitro diagnostics industries totaled $864 million--a 25% increase from Q1 2009--with most of the money, 54% or $465 million, coming out of the device industry, which saw only $127 million the previous quarter. There was one acquisition--PPD paid $14.5 million in cash for Magen BioSciences. In the most significant alliance, valued at up to $527 million, GSK got rights to three compounds from Concert Pharmaceuticals, including two in the preclinical stage, which was the most popular phase of development on Q2 alliances.
Start-Up Quarterly Statistics, Q2 2009
Highlights from the Q2 2009 review of start-up dealmaking: Fundraising in the biopharma, medical device, and in vitro diagnostics industries totaled $864 million--a 25% increase from Q1 2009--with most of the money, 54% or $465 million, coming out of the device industry, which saw only $127 million the previous quarter. There was one acquisition--PPD paid $14.5 million in cash for Magen BioSciences. In the most significant alliance, valued at up to $527 million, GSK got rights to three compounds from Concert Pharmaceuticals, including two in the preclinical stage, which was the most popular phase of development on Q2 alliances.
Call the Plumber: PIPE Logic is Leaky
Extraordinary times for capital markets have made cheap public biotechs attractive to venture investors. These private investments in public equity (PIPEs) are seen by some as a lifeline to a troubled and undervalued sector, and many VCs are considering significant public investments. But few deals are likely to get done as venture funds set a high bar for investment, regardless of fire-sale prices. Recipients of large PIPE deals may indeed provide venture-like returns for private investors, but an analysis of these financings shows why they are the exceptions that prove the rule.