Compared to the gusher of financings flooding into public companies, private companies have had to work hard to attract venture capital. But unlike previous years there may be signs that this situation is changing rapidly judging by the amount of venture capital (VC) that has been raised year-to-date.
One of the opportunities for biotechnology companies seeing their shares soar is that they can find a welcoming market for their follow-on financings. No surprise then that since the beginning of the year these transactions have been in high gear and more than $2.7 billion has been raised already.
Although it has been predicted that this will be a lean year for the approval and launch of blockbuster drugs this picture could all change if any of the anti-programmed death-1 (PD-1) antibodies under development make it to market.
Last week we learned which 10 deals – five biopharma licensing and five M&A deals negotiated in 2013 – made the cut as candidates for the Breakthrough Alliance Awards. It was a tough choice with Thomson Reuters deals analysts examining hundreds of eligible transactions in order to arrive at the final contenders. Now industry has a chance to weigh in and record their votes that will determine the “deal of the year” in each category.
According to a new report from EP Vantage, despite a surge in R&D productivity during the past couple of years, the situation might see a dramatic change this year. The rush of drugs that have hit the market and rapidly gone on to achieve blockbuster status has certainly driven investor confidence and share price valuations.
Last week we learned which 10 deals – five biopharma licensing and five M&A deals negotiated in 2013 – made the cut as candidates for the Breakthrough Alliance Awards.
While most investors had their eyes glued all-day to the FDA’s website awaiting a scheduled decision on Chelsea Therapeutics International Ltd.’s droxidopa (Northera) it surprised everyone by giving the green light to Novato, Calif.-based Biomarin Pharmaceutical Inc.’s Vimizim (elosulfase alfa), two weeks ahead of its PDUFA date of Feb 28.
Expect to see the ink flowing freely again this year as companies sign their names to partnership agreements and M&A deals. This momentum will follow on from an active fourth quarter of 2013 when the pharmaceutical and life sciences (PLS) merger and acquisition (M&A) volume and value increased, finishing the year for deal activity on a high note, according to Pharmaceutical and Life Sciences Deals Insights Quarterly, an analysis of M&A trends and outlook for the PLS sector issued by PwC last week.
Los Angeles-based Puma Biotechnology Inc. is on a roll. Fresh off receiving a favorable decision from the European Patent Office last week, which upheld the claims related to its licensed European patent that were being opposed by Boehringer Ingelheim International GmbH, the company leveraged its soaring share price by raising $120 million from an underwritten public offering – selling 979,592 shares of its common stock at $122.50 each.
Plenty has been written about how biopharmaceutical companies have been examining their business operations in the wake of sweeping government health care reform. While the emphasis has naturally been on improving the efficiency of drug research and development, equally as important will be the management of the corporate real estate function.
