Biotech IPOs: Rewards Worth The Risk
This article was originally published in Start Up
An analysis by START-UP reveals that newly public companies are raising more money (on average) than comparable companies who remained private, even if total dollars for the pool of public firms is dwarfed by the total amount raised by their private brethren.
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Sangamo licensed Biogen zinc finger protein transcription factor candidates in an alliance worth over $2bn. Exercising an option it gained in 2017, Takeda bought celiac disease-focused PvP Biologics for up to $330m in earn-outs. A strong showing of IPOs prompted biopharma financing to increase from last month.
Derived from Strategic Transactions, Informa’s premium source for tracking life sciences deal activity, the Dealmaking column is a survey of recent health care transactions listed by relevant industry segment – In Vitro Diagnostics, Medical Devices, and Pharmaceuticals – and then categorized by type – Acquisition, Alliance, or Financing. This month’s column covers deals announced February 2020.
Device financing during 2019’s final quarter totaled $1.6bn, a substantial decrease from Q3’s $4.05bn. Merger and acquisition activity, almost doubled from the previous quarter reaching $6.1bn; Stryker’s 4.7bn takeover of Wright Medical was the only billion-dollar transaction. Financings by diagnostics/research players totaled $1.3bn (the lowest quarter of the year) and eight companies were acquired, five of which together were valued at $981m.