The leading biopharmaceutical companies had no difficulty getting into the spirit of Halloween by posting some particularly scary performances on the stock market in October. The BioWorld Biopharmaceutical index fell a dramatic 10 percent, and it now sits underwater by 22 percent year to date with little chance of getting back to even before the end of 2016.
SAN FRANCISCO – After a number of bumps along the road, confidence has returned and expectations are once again high that the gene therapy and other advanced therapies sector can finally make good on its promise to transform 21st century medicine. That enthusiasm has translated into strong IPO debuts for gene therapy companies and the FDA granting breakthrough status for multiple drug candidates in the space.
SAN FRANCISCO – All those involved in the biopharma industry are always worried about something – it's in our nature. Even when the times are good we tend to fret about whether they will last. Well, bring out the anxiety pills: The 2016 U.S. presidential election is just around the corner, bringing with it a host of uncertainties about the pricing of medicines, which has reverberated into lower biotech valuations in the stock market.
If lawmakers, industry and payers need any more motivation to reform the complex drug supply chain in the U.S., they have only to look at some of the potentially game-changing technologies coming down the pike.
Partnership and licensing deal volume (199) and their potential values, totaling more than $19 billion, in the third quarter were about the same as those recorded in the second quarter, providing further evidence that the biopharma sector has not lost its appetite for dealmaking and those transactions are maintaining their torrid pace to eclipse the number and volume totals racked up last year.
Financings in the biopharma sector were decidedly better in the third quarter compared to their dismal showing during the second quarter. The total generated from public and private transactions were well over double the amount that was raised in the second quarter. In the period, investor confidence returned, fueling a broad market rally after its tumble following Brexit and that helped the biotech sector. The strong showing has helped bring the year-to-date financings to $25 billion.
Financings in the biopharma sector were decidedly better in the third quarter compared to their dismal showing during the second quarter. The total generated from public and private transactions were well over double the amount that was raised in the second quarter. In the period, investor confidence returned, fueling a broad market rally after its tumble following Brexit and that helped the biotech sector. The strong showing has helped bring the year-to-date financings to $25 billion.)
Biotech IPOs were sluggish in the third quarter, with only seven companies successfully completing their offerings on U.S. exchanges, raising a collective $396 million in the process, according to BioWorld analysis. That was 42 percent below the 12 biotech IPOs, raising $1.35 billion in the third quarter last year and 36 percent off the 11 companies completing their offerings in the second quarter this year, raising $564 million. Although it looks as though investors are not supporting new biotech issues as once they were, there was, however, a notable improvement in the IPO market in general with tech companies finding considerable support.
Biotech IPOs were sluggish in the third quarter, with only seven companies successfully completing their offerings on U.S. exchanges, raising a collective $396 million in the process, according to BioWorld analysis.
The biopharma sector is heading into the final quarter with plenty of work to do to salvage some respectability from what has so far proved to be a turbulent and challenging year. With one more trading day before the books close on the third quarter, we took a quick look at where the industry stands prior to our deeper analysis on its business and financial performance in next week's issue.
