DATA PAGE Investors bullish in Q1

Stacy Lawrence

Despite a bullish stock market in Q1, private investors and com- value ($20 million versus $17 million in Q1 2005). Another reflec- panies were increasingly skittish. Although the number of initial tion of investor caution was a big increase in funds raised through public offerings (IPOs) and venture capital (VC) deals remained debt and private investment in public equity (PIPE) deals. Overall, steady, their average values declined. A typical IPO garnered about total financing grew by about 13% quarter-over-quarter and 137% one-third less in Q1 than one year earlier; VC rounds also fell in year-over-year.

Biotech stock market performance Global biotech initial public offerings A bullish first quarter accounted for about half of the ~12% growth seen The average value of an IPO eroded to $32 million from $50 million last over the last five quarters. year at the same time.

Swiss Exchange Nasdaq Biotech Nasdaq Dow Jones BioCentury Biotech 100 700 397 207 168 150 0 838 600 0 323 140 500 101 53 283 0 130 400 284 42 North America 7 8 Europe 120 300 Asia-Pacific

Index 110 200

Amount raised ($ millions) Amount raised 100 100 0 http://www.nature.com/naturebiotechnology 90 1Q05 2Q05 3Q05 4Q05 1Q06 Financial quarter 80 Number of IPOs North America 7 1 6 4 8 Europe 5 6 3 9 5 3/7/054/7/055/7/056/7/05 8/7/059/7/05 2/7/063/7/06 1/7/052/7/05 7/7/05 10/7/0511/7/0512/7/051/7/06 Asia-Pacific 0 1 2 0 0 Source: Multex, BioCentury Source: BioCentury Global biotech industry financing Global biotech venture capital investment A $5 billion debt offering by represented almost one-third of total More venture capital rounds were awarded and total investment held biotech financing in the first quarter. relatively steady in Q1.

Partnering Debt and other financing Follow-on financing PIPEs Venture capital IPOs 1,176 1,800 31,111 326 308 945 35 3 1,600 800 347 Nature Publishing Group Group Nature Publishing 15 370 2,151, 1,109, 1,451, 525, 1,192, 604 6 1Q05 1,400 390 26 9 3 North America 1,200 2Q05 4,093, 1,482, 498, 545, 1,434, 343 Europe 200 1,000 Asia-Pacific © 3Q05 3,279, 2,570, 1,373, 825, 1,318, 333 800 600 4Q05 7,745, 2,804, 1,432, 591, 1,536, 551

Financial quarter 400

Amount raised ($ millions) Amount raised 200 1Q06 6,436, 5,263, 1,759, 1,451, 1,301, 424 0 0 5,000 10,000 15,000 20,000 1Q05 2Q05 3Q05 4Q05 1Q06 Amount raised ($ millions) Financial quarter Source: BioCentury, Burrill & Company Source: BioCentury

Notable Q1 biotech deals IPOs Company (lead underwriters) Amount raised ($ millions) Percent change in stock price since offer1 Date launched Altus Pharmaceuticals (Merrill Lynch, Morgan Stanley) $1,050 44% 26-Jan Alexza Pharmaceuticals (Piper Jaffray, Pacific Growth Equities) $506 22% 8-Mar AGI Therapeutics (Davy Stockbrokers) $504 N/A 27-Feb (Banc of America) $365 –15% 10-Feb Iomai (UBS Investment Bank, SG Cowen) $350 –17% 1-Feb Venture capital Company (Lead investors) Amount invested ($ millions) Round number Date closed Cadence Pharmaceuticals (Frazier Healthcare Ventures) $79 1 22-Feb Microbia (Sigma Capital) $75 5 27-Feb Novacea (Apax Partners) $60 3 4-Jan Nabriva Therapeutics Forschungs (Nomura Phase4 Ventures) $51 1 31-Jan (HBM BioVentures) $43 4 6-Mar Merger and acquisitions Target Acquirer Value ($ millions)2 Date announced ANDRx Watson Pharmaceuticals $1,900 13-Mar Pliva $1,600 17-Mar American Medical Instruments Angiotech Pharmaceuticals $785 1-Feb Betapharm Dr. Reddy’s Laboratories $572 16-Feb The Healthfield Group Gentiva Health Services $454 5-Jan Licensing /collaboration Researcher Investor Value ($ millions) Deal description Pharmaceuticals $800 Collaboration, discovery and development Nastech Pharmaceutical Procter & Gamble $587 Collaboration, discovery and development Idenix Pharmaceuticals Novartis $525 License SGX Pharmaceuticals Novartis $515 Collaboration, discovery and development Zentiva Sanofi-Aventis $515 25% equity investment Infinity Pharmaceuticals Novartis $400 Collaboration, discovery and development $385 Collaboration, discovery and development NicOx $385 Collaboration, discovery and development NicOx Merck $351 Collaboration, discovery and development 1As of April 3. 2As of deal announcement data. Source: BioCentury, ReCap.com

486 VOLUME 24 NUMBER 5 MAY 2006 NATURE BIOTECHNOLOGY