Biotechnology State of the Industry R E P O R T 2 • 0 • 0
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BIOWORLD® BIOTECHNOLOGY STATE OF THE INDUSTRY REPORT 2•0•0•6 THE BIOWORLD® STATE OF THE INDUSTRY REPORT 2006 is published by Thomson BioWorld®, 3525 Piedmont Road, Building Six, Suite 400, Atlanta, GA 30305 USA. Opinions expressed are not necessarily those of this publication. Mention of prod- ucts or services does not constitute endorsement. Thomson BioWorld® is a division of Thomson Healthcare. Copyright © 2006 Thomson BioWorld®. All Rights Reserved. No part of this publication may be reproduced without the written consent of Thomson BioWorld®. (GST Registration Number R128870672) Managing Editor: Brady Huggett. Senior Production Editor: Kay Torrance. Database Editor: Jim Shrine. Staff Writers: Karen Pihl-Carey, Jennifer Boggs. Science Editor: Anette Breindl. National Editor: Randall Osborne. Washington Editor: Aaron Lorenzo. Vice President/Group Publisher: Donald R. Johnston. Marketing Manager: Chris Walker. Account Representatives: Bob Sobel, Steve Roberts. Customer Service: (800) 688-2421 or (404) 262-5476. NO PART OF THIS PUBLICATION MAY BE REPRODUCED WITHOUT THE WRITTEN CONSENT OF THOMSON BIOWORLD®. To obtain photocopying rights or subscribe, please call (800) 688-2421. Table Of Contents I. Analysis Biotech Continues Growth In Quieter, Calmer Environment ................................................................................9 The Year In Review....................................................................................................................................................................1 1 The View From Wall Street ..................................................................................................................................................17 The View From Washington................................................................................................................................................22 The View From The Lab Bench..........................................................................................................................................25 II. Financial Data Discerning Market, Caution Drove Trends In Financing ......................................................................................33 Money Raised By Biotechnology Companies ............................................................................................................36 Initial Public Offerings..........................................................................................................................................................37 Follow-On Offerings ............................................................................................................................................................42 After-Market Performance (Initial Public Offerings)................................................................................................49 After-Market Performance (Follow-On Offerings) ....................................................................................................50 Initial Public Offerings: 2002-2005 (Gross Proceeds By Month) ......................................................................53 Follow-On Offerings: 2002-2005 (Gross Proceeds By Month)............................................................................54 Gross Proceeds Of Biotech Public Stock Offerings: By Quarter 1995-2005..................................................55 Miscellaneous Financings Of Public Biotech Companies......................................................................................56 Venture Capital And Other Financings Of Private Biotechnology Firms ........................................................91 Milestones And Equity Investments From Corporate Partners ........................................................................121 Grants And Awards To Biotech Companies ..............................................................................................................134 III. Corporate Deals Major Playor Novartis Pays Big For Products, Platforms......................................................................................165 Biotechnology Mergers And Acquisitions..................................................................................................................169 Biotech-Big Pharma Collaborations: New Agreements ........................................................................................190 Biotech-Big Pharma Collaborations: Modified And Terminated Agreements ..........................................242 Manufacturing, Marketing And Distribution Agreements With Pharma Companies ............................250 Biotech-Biotech Deals: Collaborations, Agreements And Equity Participation ........................................260 Biotech-Biotech Collaborations: Modified And Terminated Agreements ..................................................300 Manufacturing, Marketing And Distribution Agreements Between Biotechnology Companies......302 Biotech Miscellaneous Collaborations........................................................................................................................309 Biotech-University/Nonprofit Institutions Collaborations ................................................................................312 Biotech-Agribusiness Collaborations..........................................................................................................................350 IV. Biotech Product Development Who’s To Blame For Fewer Approvals: FDA Or Biotech?......................................................................................359 Biotechnology Products Approved By FDA In 2005 ............................................................................................363 Biotechnology Products On The Market....................................................................................................................367 FDA Actions On Pending Applications In 2005 ......................................................................................................384 Licensing Applications Filed And Pending At FDA In 2005 ..............................................................................387 Products Not Recommended For Approval By FDA Advisory Panels In 2005..........................................393 Overseas Approvals And Actions In 2005................................................................................................................394 V. Report Card For Wall Street Methodology Used To Evaluate Underwriters’ Performance............................................................................405 Top 10 Underwriters: Full Credit To Lead Underwriters; Ranked By Gross Proceeds ............................406 Other Underwriters: Full Credit To Lead Underwriters; Ranked By Gross Proceeds..............................407 Top 10 Underwriters: Full Credit To All Underwriters; Ranked By Gross Proceeds ................................408 Other Underwriters: Full Credit To All Underwriters; Ranked By Gross Proceeds ..................................409 Top 9 Underwriters: IPOs (Full Credit To Lead Underwriters, Ranked By Gross Proceeds) ..................41 1 Other Underwriters: IPOs (Full Credit To Lead Underwriters, Ranked By Gross Proceeds ..................412 Top 10 Underwriters: IPOs (Full Credit To All Underwriters; Ranked By Gross Proceeds) ....................413 Other Underwriters: IPOs (Full Credit To All Underwriters; Ranked By Gross Proceeds)......................414 Top 9 Underwriters: IPO (Full Credit To Lead Underwriters; Ranked By After-Market Performance)......415 Other Underwriters: IPO (Full Credit To Lead Underwriters; Ranked By After-Market Performance)......416 Top 10 Underwriters: IPO (Full Credit To All Underwriters; Ranked By After-Market Performance) ......417 Other Underwriters: IPO (Full Credit To All Underwriters; Ranked By After-Market Performance)........418 VI. Stock Performance 2005 Stock Report: An Alphabetical Listing Of Public Biotech Companies................................................421 2005 British Stock Report ................................................................................................................................................427 2005 Canadian Stock Report..........................................................................................................................................428 2005 Price Performance: Biotechnology Stocks Ranked By Percent Change For Year..........................429 Tracking The Overall Performance Of The 279 Stocks In BioWorld’s Universe ......................................433 BioWorld Stock Indicator Vs. Nasdaq Biotech Index ............................................................................................435 BIOWORLD® ANALYSIS Biotech Continues Growth In Quieter, Calmer Environment By Brady Huggett Managing Editor In many ways, 2005 looked a lot like 2004. Total money raised last year nearly equaled the year prior, when the industry raised $20.8 billion. There were 33 initial public offerings around the world in 2005, just slightly off from the 37 that completed in 2004. The markets were steady both years – BioWorld’s stock tracker showed the aver- age biotech firm’s shares in 2005 lost just 2 percent, compared to the 2.5 percent gained in 2004. Those signs point to a leveling off for the sector, suggesting that gone are the days of an opening and then abruptly slamming IPO window, gone are collective plummeting and zooming of stock prices, based on a single firm’s news.