DATA PAGE Enthusiasm cools in Q2

Stacy Lawrence

Although private financing and overall funding remain relatively by a little more than 10%, and the NASDAQ Biotechnology Index stable, investor interest in biotech is a shadow of a year ago, when has receded by almost 15%. Public offerings and follow-on financing the initial public offering (IPO) market had just come off the best have dwindled from the high early last year, even with a robust IPO two quarters of this window. The BioCentury 100 Index has fallen market in Europe.

Biotech stock market performance Global biotech initial public offerings Biotech indices from BioCentury and Nasdaq have declined by >10% With six public offerings, European IPO fundraising totals outstripped since Q2 2004. those in the US for the first time during this IPO window.

120 662 800 39 115 18 397 110 700 207 298 0 105 600 92 Biocentury biotech 125 264 North America 100 500 53 Dow Jones 79 277 Europe 95 400 16 Nasdaq 7 Asia-Pacific Index 300 90 Nasdaq Biotechnology ($ millions) Amount raised 85 200 Swiss Exchange 80 100 75 0 2Q04 3Q04 4Q04 5Q04 6Q04 70 http://www.nature.com/naturebiotechnology Financial quarter Number of IPOs North America 14 6 6 7 1 Europe 2 3 5 5 6 4/2/2004 6/2/2004 8/2/2004 2/2/2005 2/2/2005 2/2/2005

10/2/2004 12/2/2004 Asia-Pacific 2 2 1 0 1 Source: Multex, BioCentury Source: BioCentury Global biotech venture capital investment Notable second quarter biotech deals Company (lead underwriter) Amount raised Percent Date As they have for the past five quarters, venture capital totals held relatively ($ millions) change in launched stock price steady in the second quarter. since offer1 IPOs Arpida (Deutsche Bank) $81 -8% 4-May 962 817 996 866 302 450 287 ProStrakan Group (Morgan $73 3% 10-Jun 1,400 346 0 856 3 15 Stanley) 2 1,200 220 XenoPort (Morgan Stanley) $53 2% 2-Jun North America 0 TopoTarget (N/A) $37 3% 9-Jun 1,000 Europe Devgen (KBC Securities) $37 5% 7-Jun 2005 Nature Publishing Group Group 2005 Nature Publishing Asia-Pacific Company (lead investor) Amount invested Round Date closed

© 800 ($ millions) number

($ millions) 600 Venture Verus Pharmaceuticals (Domain $78 1 9-Jun

Amount raised capital Associates, Prospect Venture Partners) 400 Somaxon Pharmaceuticals $65 3 6-Jun 200 (MPM Capital) Oxagen (MPM Capital) $60 2 23-May 0 Gemin X Biotechnologies $50 4 19-May 2Q04 3Q04 4Q04 1Q05 2Q05 (H.I.G. Ventures) Financial quarter Osiris Therapeutics (Friedli $50 N/A 8-Jun Source: BioCentury Corporate Finance) Azur Pharma (N/A) $49 N/A 8-Jun Elbion (3i, Burrill & Company, $45 1 24-May Global biotech industry financing Deutsche Venture Capital) With partnering revenue up, overall funding during Q2 exceeded the total Target Acquirer Value Date amount in the same quarter last year. ($ millions) announced Vicuron $1,900 15-Jun Mergers and Transkaryotic Therapies Shire $1,600 21-Apr acquisitions Pharmaceuticals 2Q04 22,262, 1,874, 1,264, 409, 540, 718 Bone Care Genzyme $719 4-May Partnering Corixa GlaxoSmithKline $300 2-May 3Q04 3,017, 949, 1,076, 430, 792, 515 Debt and other finance Peninsula Pharmaceuticals Johnson & Johnson $245 19-Apr Venture capital Researcher Investor Value Deal type 4Q04 3,644, 4,472, 1,213, 578, 792, 515 ($ millions) PIPEs Licensing / Karlin Technology Medtronic $800 Asset pur- 1Q05 2,151, 4,472, 1,213, 578, 792, 515 Follow-on financings collaboration chase Financial quarter IPO financings Anadys Pharmaceuticals Novartis $570 Co-develop- ment, license 2Q05 4,093, 1,330, 1,297, 462, 340, 336 $490 License 0 5,000 10,000 15,000 IDEC $408 Asset pur- chase Amount raised ($ millions) Arakis, Vectura Novartis $375 Collaboration BioMarin Pharmaceuticals Serono $257 Collaboration Source: BioCentury, Burrill & Company 1Prices as of July 1, 2005. Source: BioCentury, Hoover’s, Recombinant Capital, Burrill & Company, company websites

914 VOLUME 23 NUMBER 8 AUGUST 2005 NATURE BIOTECHNOLOGY