Biotech's New Breed of IPOs
This article was originally published in Start Up
Executive Summary
In assessing the sixteen biotechs making their public debuts over the past six months, investors clearly favor companies specializing in development, not discovery. What's more, investors especially prefer those development firms with late-stage products, lots of cash, and possibly even a sizable out-licensing deal.
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Pfizer/Angiosyn: Building Biotechs for Device-style Early M&A
Pfizer's acquisition of privately-held Angiosyn is basically a milestones-and-royalty-based licensing deal for the biotech's preclinical non-VEGF targeting AMD candidate. Angiosyn was designed for early M&A, much like most medical device firms of the past ten years, and this risk-sharing agreement with Pfizer may imply a new, leaner model for biotech company building.
Pfizer/Angiosyn: Building Biotechs for Device-style Early M&A
Pfizer's acquisition of privately-held Angiosyn is basically a milestones-and-royalty-based licensing deal for the biotech's preclinical non-VEGF targeting AMD candidate. Angiosyn was designed for early M&A, much like most medical device firms of the past ten years, and this risk-sharing agreement with Pfizer may imply a new, leaner model for biotech company building.
Oragenics: Starting Public
Oragenics opted for an IPO when VC backing failed to materialize, landing enough cash to advance its varied programs. Managing a public start-up in the Sarbanes-Oxley era has been a challenge for the Florida biotech, whose lead product is a genetically modified bacteria aimed at eliminating dental cavities.