At 26 years old, Karen Jury stood before a class of elementary students as her right arm tingled before falling completely numb. That led to a conversation with her doctor. Years of migraine headaches and a recurring sensation of shock waves throughout her body, simply from the turn of her head, resulted in a scheduled spinal tap and an MRI. She received a diagnosis of Arnold-Chiari malformation, a structural defect in the base of the skull and cerebellum.
Jaime Sanders was just a child, barely 8 years old, when a debilitating condition kept her inside from recess and home from school. “I would get these intense headaches focused on the left side like a sledgehammer was banging on my head,” she said.
While the efficacy of three central nervous system (CNS) drugs awaiting regulatory approvals is not vastly different from currently marketed products, their formulations and methods of delivery, combined with what payers will support, make them formidable players in the multiple sclerosis (MS) and migraine markets.
The pending Abbvie Inc. merger with Allergan plc, expected to close in the first quarter, brought good tidings to another “A” company on Monday, allowing Astrazeneca plc to regain global rights to its late-stage Crohn’s disease and ulcerative colitis (UC) drug, brazikumab.
The pending Abbvie Inc. merger with Allergan plc, expected to close in the first quarter, brought good tidings to another “A” company on Monday, allowing Astrazeneca plc to regain global rights to its late-stage Crohn’s disease and ulcerative colitis (UC) drug, brazikumab, an anti-IL-23 therapy that was out-licensed to Allergan in a $1.27 billion deal in 2016.
The final scorecard for med-tech IPOs in 2019 shows that Lake Forest, Calif.-based Inmode Ltd. performed the best since its August debut, while San Diego-based Guardion Health Sciences Inc. lost the most stock value during the year.
Last year’s robust deal-making environment, high-value M&As, increasing financings and a supportive public market has set the stage for continued med-tech enthusiasm among investors and partners in 2020.
Whether the dealmaking momentum of 2019 will continue into 2020 is at the mercy of several uncertainties, not the least of which is the outcome of a U.S. presidential election and continued debates over drug pricing and other legislative issues affecting the industry.
Med-tech companies brought in more money than each of the last two years in every type of financing, aside from private placements, with about 11% of the funds flowing into digital health companies. In total, the industry raised $40.67 billion, an increase of 98% over 2018, which logged $20.6 billion and was more in line with the $19.4 billion raised in 2017.
Despite a rough ride on the capital markets for much of the year, particularly in the second and third quarters, this did not prevent the biopharmaceutical sector from attracting a significant amount of capital. According to BioWorld, when the curtain closed on 2019, approximately $57.6 billion had been generated by global public and private companies.