data page 2009: Turning the corner

Walter Yang

Despite the shaky start to 2009, the biotech sector regained its financial Although initial public offerings showed signs of resuscitation (at least footing. Biotech indices were up, as were offerings and partnership mon- 13 more companies are now in the queue), follow-on financings came in ies. Excluding collaborations, the sector raised a total of $24.3 billion. above $6 billion—the second-best year over the past decade. Stock market performance Global biotech industry financing Although biotech indices were up ~16% last year, they underperformed The boost in partnership promises to US biotechs and follow-on financings other major indices. pushed industry funding to $61.3 billion, up 82% from 2008. 1,500 Swiss Market S&P 500 2009 36.9 10.0 5.1 2.2 6.0 0.9 1,400 NASDAQ Biotech Dow Jones 2008 20.0 3.2 5.3 3.1 1.9 0.1 1,300 NASDAQ BioCentury 100 2007 22.4 11.7 6.8 4.7 4.4 3.0 1,200 Partnering 2006 19.8 11.9 5.6 4.7 5.6 2.0

1,100 Year Debt and other

Index 17.3 6.1 5.4 2.7 4.8 1.9 1,000 2005 Venture capital PIPEs 900 2004 10.9 8.8 5.3 2.9 3.3 2.6 Follow-ons 800 2003 8.9 9.1 4.0 2.2 3.9 0.5 IPOs 700 010203040506070 Amount raised ($ billions) 1/09 2/09 3/09 4/09 5/09 6/09 7/09 8/09 9/09 12/08 Month ending 10/09 11/09 12/09 Partnership figures are for deals involving a US company. Source: BCIQ: BioCentury Online Intelligence, Burrill & Co. PIPEs, private investments in public equity; IPOs, initial public offerings Global biotech venture capital (VC) investment Venture money fell slightly last year, as private companies raised Global biotech initial public offerings (IPOs) $5.1 billion versus $5.3 billion in 2008. The North American IPO market showed signs of life, with four companies 107 raising $705 million versus only one raising $6 million in 2008. 8,000 1,436 Asia-Pacific 58 5,241 3,500 585 7,000 69 78 55 53 Asia-Pacific 1,206 Europe 230 1,055 1,213 1,451 1,145 1,130 1,309 6,000 3,871 4,315 3,000 474 40 4,045 4,070 3,947 Europe Americas 1,852 98 5,000 797 2,500 15 869 3,151 Americas 4,000 930 1,063 2,000 913 3,000 65 © 2010 Nature America, Inc. All rights reserved. All rights Inc. America, Nature © 2010 1,500 158 2,000 43 1,000 705 1,000 19 483 12 115 VC amount raised ($ millions) 0 500 2003 2004 2005 2006 2007 2008 2009 6 Amount raised ($ millions) Year 0 2003 2004 2005 2006 2007 2008 2009 2003 2004 2005 2006 2007 2008 2009 Year Americas 184 190 182 204 223 212 196 2003 2004 2005 2006 2007 2008 2009 Europe 77 82 95 81 105 101 87 Americas Asia-Pacific 5 6 9 8 9 6 4 8 35 18 26 23 1 4 Europe 1 12 24 21 21 3 3 Asia-Pacific Table indicates number of VC investments and includes rounds where the amount 5 6 3 3 7 2 3 raised was not disclosed. Source: BCIQ: BioCentury Online Intelligence Table indicates number of IPOs. Source: BCIQ: BioCentury Online Intelligence Notable 2009 deals IPOs Mergers and acquisitions Percent Target Acquirer Value ($ millions) Date announced Amount change in Roche $46,800 12-Mar raised stock price Date Sepracor Dainippon Sumitomo $2,600 3-Sep Company (lead underwriters) ($ millions) since offer completed Medarex Bristol-Myers Squibb $2,400 22-Jul Talecris (Morgan Stanley, Goldman Sachs, Citigroup, $550.0 17% 30-Sep JPMorgan) CV Therapeutics $1,400 12-Mar Movetis (Credit Suisse, KBC) $146.0 3% 3-Dec Cougar Biotechnology Johnson & Johnson $1,000 21-May Cumberland (UBS, Jefferies, Wells Fargo) $85.0 –5% 10-Aug Ovation Pharmaceuticals H. Lundbeck $900 09-Feb Omeros (Deutsche Bank) $68.2 –30% 7-Oct Proteolix Onyx Pharmaceuticals $851 12-Oct China Nuokang (Jefferies) $40.7 –13% 9-Dec Licensing /collaboration Venture capital Value Amount Researcher Investor ($ millions) Deal description raised Round PTC Roche $1,924 Develop small molecules against four central nervous Company (lead investors) ($ millions) number Date closed Therapeutics system disease targets Clovis Oncologya (Domain, New Enterprise Associates, $145.0 NA 21-May Nektar AstraZeneca $1,505 Worldwide rights to NKTR-118 for opioid-induced con- Versant, Aberdare, Abingworth, Frazier, ProQuest, stipation and NKTR-119 for pain without constipation company management) Incyte Novartis $1,310 Ex-US rights to INCB18424; in phase 3 for myelofibro- Zogenix (Clarus, Domain) $71.0 2 07-Dec sis; worldwide rights to preclinical INCB28060 Targacept AstraZeneca $1,240 Worldwide rights to develop and commercialize major BioVex (Forbion, Morningside, Ventech, MVM) $70.0 6 10-Nov depressive disorder compound TC-5214 b Pacific Biosciences (Deerfield, Intel) $68.0 5 12-Aug Exelixis - >$1,161 Exclusive, worldwide rights to XL147 and XL765 in Hyperion (Bay City Capital, Panorama Capital) $60.0 3 30-Jun aventis phase 1b/2 to treat cancer NovImmune (BZ Bank) $56.4 NA 12-May ZymoGenetics Bristol-Myers $1,105 Codevelop and commercialize ZymoGenetics’ phase 1 Sopherion (Zoticon Bioventures) $55.0 3 18-Feb Squibb hepatitis C virus compound PEG-interferon lambda aLead investor not available. bSeries E extension. Amylin Takeda >$1,075 Codevelop and commercialize therapeutics for obesity and related indications Alder Bristol-Myers $1,069 Worldwide rights to ALD518 for all indications, except Squibb cancer

116 volume 28 number 2 february 2010 nature biotechnology