|
|
 |
|
Viewing report
|
|
|
|
Biotech Investment and Business Trends: Surviving the Long Road to Market
Decision Resources, Inc, May 2011
The biotech industry continues to face a harsh financing environment, including a tepid initial public offering market and lukewarm venture capital activity. Therefore, biotechs are relying heavily on pharmaceutical companies to provide funding to support costly development programs. Big Pharma’s restructuring and downsizing of internal R&D will provide biotech with dealmaking opportunities, and biotechs could benefit by taking advantage of Big Pharma’s evolving interests in emerging markets and rare diseases. Biotechs will also need to develop alternative, creative means of funding operations.
Questions answered in this report:
- The initial public offering (IPO) window opened a bit wider in 2009 for the biotech industry. What types of therapeutic life science companies were able to go public in 2010? How much capital did they raise? What problems did companies attempting IPO face?
- Venture capital (VC) investment in biotech companies increased modestly in 2010 over 2009. What types of biotech companies are attracting VC investment? Which technologies are attracting the most VC investment?
- Although no megamergers occurred in 2010, merger and acquisition (M&A) activity for biotechs in 2010 was higher than in the previous two years. What are the current trends in pharma-biotech and biotech-biotech M&As? What factors drove M&A activity in 2010? How has the structure of biotech M&As evolved in recent years?
- Corporate partnerships continued to be the most reliable source of funding for the biotech industry in 2010. What types of companies interest the pharmaceutical industry? What innovative technologies were the subject of dealmaking in 2010?
- Raising sufficient capital to support early-stage development programs is becoming increasingly difficult. What alternative financing and development strategies are available to biotech companies? What sources of funding does the U.S. government offer the industry?
- Changes in the pharmaceutical industry have a significant impact on the biotech industry. How will Big Pharma’s restructuring affect biotech companies? What types of opportunities are emerging from Big Pharma’s interest in rare diseases? Can biotech companies benefit from Big Pharma’s interest in emerging markets?
Scope of the report:
- Investment landscape: Economic recovery, NASDAQ Biotechnology Index performance, patent cliffs, Big Pharma restructuring, recent notable biotech achievements.
- Public equity financing: The biotech IPO window, focus of IPO companies, lowered price expectations.
- Private equity financing: VC and private investment, focus of companies raising VC, investments in innovation.
- Corporate partnerships: Trends in corporate partnerships, deal structures, area of focus for high-value alliances, deals that pay off; partnering for innovation.
- Mergers and acquisitions: Trends in current high-value M&As, contingent value rights (CVRs), strategic pharma-biotech and biotech-biotech M&As, factors driving M&As.
- Expert Commentary: “Focus on Diabetes: Dealmaking Trends Among Leading Players,” authored by Ben Duncan, senior analyst for Decision Resources’ commercial research product suite Pharmaview. Mr. Duncan focuses primarily on drug development and company strategy relating to metabolic diseases, including type 2 diabetes, obesity, growth-hormone-related disorders, osteoporosis, and the lysosomal storage disorders.
- Outlook for biotech investment and trends: Expectations for public and private equity financing and corporate partnering, Big Pharma restructuring, rare diseases, emerging markets, alternative financing strategies, government funding of biotech.
|
|
|
|
