Industry experts expect a continued uptick in deals valued between $2bn-$10bn this year as buyers look to add critical mass in areas like oncology, rare disease and cell and gene therapy. Divestitures to free up capital and narrow focus should continue too.
The US Nasdaq exchange has become the only option for ambitious UK and European biotechs.
In the latest instalment of our VC playbook series, In Vivo sits down with Roel Bulthuis, managing partner at INKEF Capital, to discuss the group’s approach to health care investing in Europe, the importance of funding a team not just a project and how life sciences venture capital is evolving with the emergence of health tech.
UK-centric investment firm Syncona’s model of “founding, building and funding” early-stage biotech companies – with a commitment to the longer term – hopes to help make Great Britain a cell and gene therapy powerhouse.
Latest From Deals
Device financing totaled $1.4bn during the first quarter of 2020. Merger and acquisition activity reached $714.5m, with only two transactions hitting the six-figure mark. Financings by diagnostics/research players totaled $985m and just six companies were acquired, four of which together were valued at $11.6bn, most coming from Thermo Fisher Scientific’s $11.5bn buy of fellow public life sciences company Qiagen NV.
COVID-19 has introduced new challenges (and more attorneys) into the biopharma deal-making environment, but experts say the fundamentals for deal activity point toward a rebound. Companies that adapt quickly to changes – in communication, due diligence and deal structure – will make successful connections in a time of social distancing.
Repare Therapeutics and Bristol Myers Squibb announced a multi-target discovery collaboration potentially worth over $3bn. Alexion Pharmaceuticals entered into a definitive agreement to acquire fellow public biotech Portola Pharmaceuticals $1.44bn. An increase in both follow-on public offerings and PIPE financings boosted biopharma financing significantly from last month.
During Q1, biopharmas brought in an aggregate $13.8bn in financing. M&A value reached $6.9bn, the majority from Gilead Sciences $4.9bn purchase of immuno-oncology firm Forty Seven. Alliances fetched $35bn in potential deal value, dominated by many Big Pharma tie-ups led by a $4bn discovery and development collaboration between AstraZeneca and Silence Therapeutics for siRNA therapeutics.
This month’s column covers deals announced between 1-23 April 2020.
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