The biopharma sector's blue chip companies unfortunately got into the Halloween spirit, with the BioWorld Biopharmaceutical index posting a 7 percent swoon in value in October. That performance could be enough to scare investors into remaining on the sidelines for the rest of the year. They may be thinking that the great run biopharmaceutical companies have had this year may have finally run out of steam. In addition, the general markets offer attractive alternatives right now.
The biopharma sector's blue chip companies unfortunately got into the Halloween spirit, with the BioWorld Biopharmaceutical index posting a 7 percent swoon in value in October. That performance could be enough to scare investors into remaining on the sidelines for the rest of the year. They may be thinking that the great run biopharmaceutical companies have had this year may have finally run out of steam. In addition, the general markets offer attractive alternatives right now.
The challenge of antimicrobial resistance (AMR) is one we need to urgently solve. In the U.S., the CDC estimates at least 2 million people become infected with bacteria that are resistant to currently available antibiotic therapies annually and approximately 23,000 people will die each year as a direct result of those infections. The threat of AMR has certainly been recognized worldwide and has become a top priority for global policy and public health.
The volume of biopharmaceutical deals have steadily declined each quarter this year, with only 200 recorded in the third quarter, a 23 percent fall over the second-quarter deal total and a 28 percent drop over the first-quarter number. However, in terms of value, third-quarter deals represented a total value of $21.7 billion, in line with the first quarter, and double that generated in the second quarter. (See Biopharma Deals: 2017, page 2.)
SAN FRANCISCO - The biopharma sector is on pace for a record year in terms of raising capital after experiencing a slower period of fundraising in 2016. While the majority of the traditional sources of capital are contributing to the total raised to date, there also has been a significant increase in the availability of funds from alternative sources such as crowdfunding and charitable foundations. That is good news for companies looking to navigate the so-called "valley of death," those early stage firms who are below the radar for venture capital funding until their technologies have proved their worth. A panel at the BIO Investor Forum examined the rationale and investment philosophies of those sources of capital.
SAN FRANCISCO – There has been a great deal of excitement surrounding the potential use of bispecific antibodies as cancer therapies stemming from the December 2014 accelerated approval of Amgen Inc.'s Blincyto (blinatumomab) to treat patients with relapsed or refractory Philadelphia chromosome-negative precursor B-cell acute lymphoblastic leukemia (B-cell ALL). Unfortunately, its expected influence in drug development has, as yet, failed to materialize. Why that has been the case was one of the questions posed to company executives in the space during a panel at the BIO Investor Forum last week.
The volume of biopharmaceutical deals have steadily declined each quarter this year, with only 200 recorded in the third quarter, a 23 percent fall over the second-quarter deal total and a 28 percent drop over the first-quarter number. However, in terms of value, third-quarter deals represented a total value of $21.7 billion, in line with the first quarter, and double that generated in the second quarter. (See Biopharma Deals: 2017, page 2.)
The amount of cash generated by global public and private biopharmaceutical companies was up significantly in the third quarter compared to the second quarter.
The amount of cash generated by global public and private biopharmaceutical companies was up significantly in the third quarter compared to the second quarter. The almost $16 billion haul was 45 percent higher than the $11 billion raised during the second quarter and almost 25 percent higher than the total generated in the same period last year. Thanks to their higher company valuations, public companies were able to conduct public offerings with confidence, and the amount of private capital raised ballooned to more than $3.23 billion – a 61 percent increase over the $2 billion generated in the second quarter of this year.
Biopharmaceutical companies continue to enjoy a banner year, and the sector as a whole remains a favorite with investors, a fact confirmed by Jefferies analyst Michael Yee, who wrote that "the biotech sector [is] seeing an increase in money flow and better performance vs. the broader market and other health care sectors."
