A total of 946 med-tech deals so far in 2021 are valued at $537.42 million, which pales in comparison to each of the last three years, although the volume is way ahead, indicating robust activity but a high number of deals with undisclosed terms.
Contrary to the broader markets, BioWorld’s Cancer Index is down by 22% this year, losing more than 7% throughout the month of July, despite oncology driving several high-money deals and accounting for 38%, the lion’s share, of financings. Both the Nasdaq Biotech Index and the Dow Jones Industrial Average are tracking similarly for the year, and are up by 13.2% and 15.2%, respectively, as of Aug. 10.
While the 441 med-tech financings completed so far this year are nearly as much as this point last year (446), the amount of money raised, at $33.43 billion, is 17% below the amount raised through early August of 2020 ($40.14 billion). Just two months ago, the volume of financings was 10% higher than last year, indicating a recent slowdown in activity. Nevertheless, 2021 appears to be on track to beat the $40.7 billion raised in 2019, and it is already ahead of the full year amounts for 2017 and 2018.
For the first time this year, the amount of money raised by the biopharma industry has dropped below the amount collected during the same timeframe last year, even though the number of transactions has climbed by nearly 10%.
The world has been running an ultramarathon since the COVID-19 pandemic began, but despite the ups and downs of cases and deaths, the wins and losses of clinical efforts, every day is another step forward toward herd immunity and the finish line.
Although 14 of the 17 stocks that make up BioWorld’s Neurological Disease Index (NDI) dropped in value over the last month, the index is still ahead by about 9% this year, with a huge surge by Prothena Corp. plc leading the way.
For the first time this year, BioWorld’s Biopharmaceutical Index is showing signs of life with an increase of 5.6%, boosted primarily by Alzheimer’s disease efforts from Biogen Inc. and Eli Lilly and Co. Biogen’s stock (NASDAQ:BIIB) is up about 36.4% this year and has been front and center due to its controversial FDA approval for Aduhelm (aducanumab) in June. Lilly’s stock (NYSE:LLY) has climbed by more than 44%, and it was granted breakthrough therapy designation a month ago for its Alzheimer’s candidate donanemab.
While 2020 was clearly a busier year for grants and nonprofit deals with biopharma companies, pandemic efforts continue to drive the activity in these two areas. Through mid-July, there have been 204 grants valued at $1.75 billion, and 516 bio/nonprofit deals worth more than $8 billion, up from $4.66 billion only a month ago.
Stock market exuberance, particularly in favor of an innovative industry working to pull the world out of the deadly COVID-19 pandemic, led to drug developers shares surging 30% in 2020. But if one thing is certain, it is this: Markets usually pull back and that is partially why BioWorld’s Drug Developers Index is showing only a 2.06% gain so far this year, in contrast to both the Nasdaq Biotechnology Index and the Dow Jones Industrial Average, which are up 6.28% and 10.96%, respectively.
While overall clinical trial activity appears to be slowing, June was the busiest month for the year, and, in fact, all of last year, with a total of 436 items of news related to phase I, phase II and phase III research.
