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 $61.3 billion, up 82% from 2008.
1,500
36.9 10.0 5.1 2.2 6.0 0.9
S&P 500
Swiss Market
2009 2008 2007 2006 2005 2004 2003
NASDAQ Biotech NASDAQ
Dow Jones
1,400 1,300 1,200 1,100 1,000
900
20.0 3.2 5.3 3.1 1.9 0.1
22.4 11.7 6.8 4.7 4.4 3.0
BioCentury 100
Partnering Debt and other Venture capital PIPEs
19.8 11.9 5.6 4.7 5.6 2.0
17.3 6.1 5.4 2.7 4.8 1.9
10.9 8.8 5.3 2.9 3.3 2.6
8.9 9.1 4.0 2.2 3.9 0.5
Follow-ons
800
IPOs
- 0
- 10
- 20
- 30
- 40
- 50
- 60
- 70
700
Amount raised ($ billions)
Partnership figures are for deals involving a US company. Source: BCIQ: BioCentury Online Intelligence, Burrill & Co.
Month ending
PIPEs, private investments in public equity; IPOs, initial public offerings
Global biotech venture capital (VC) investment
Global biotech initial public offerings (IPOs)
Venture money fell slightly last year, as private companies raised
- $5.1 billion versus $5.3 billion in 2008.
- The North American IPO market showed signs of life, with four companies
raising $705 million versus only one raising $6 million in 2008.
107
1,436
5,241
8,000
Asia-Pacific
Europe
585
1,055
1,309
58
1,206
4,315
3,500
7,000 6,000 5,000 4,000 3,000 2,000 1,000
0
78
1,451
3,871
69
1,213
4,045
55
1,145
4,070
Asia-Pacific Europe
53
1,130
3,947
230
474
1,852
3,000 2,500 2,000 1,500 1,000
500
40
797
Americas
98
869
1,063
15
930
913
Americas
3,151
65
158
705
43
19
483
12
115
6
- 2003
- 2004
- 2005
- 2006
Year
- 2007
- 2008
- 2009
0
- 2003
- 2004
- 2005
- 2006
Year
- 2007
- 2008
- 2009
- 2003 2004 2005
- 2006 2007 2008 2009
Americas Europe Asia-Pacific
184 77 5
190 82 6
182 95 9
204 81 8
223 105
9
212 101
6
196 87 4
2003 2004 2005 2006 2007 2008 2009
Americas Europe Asia-Pacific
815
35 12 6
18 24 3
26 21 3
23 21 7
132
433
Table indicates number of VC investments and includes rounds where the amount
- raised was not disclosed. Source: BCIQ: BioCentury Online Intelligence
- Table indicates number of IPOs. Source: BCIQ: BioCentury Online Intelligence
Notable 2009 deals
- IPOs
- Mergers and acquisitions
Percent change in stock price
($ millions) since offer completed
Target
Genentech Sepracor Medarex CV Therapeutics Cougar Biotechnology Ovation Pharmaceuticals Proteolix
Acquirer
Roche
- Value ($ millions)
- Date announced
Amount raised
- $46,800
- 12-Mar
Date
Dainippon Sumitomo Bristol-Myers Squibb Gilead Sciences Johnson & Johnson H. Lundbeck
$2,600 $2,400 $1,400 $1,000
$900
3-Sep 22-Jul 12-Mar 21-May 09-Feb 12-Oct
Company (lead underwriters)
Talecris (Morgan Stanley, Goldman Sachs, Citigroup, JPMorgan) Movetis (Credit Suisse, KBC) Cumberland (UBS, Jefferies, Wells Fargo) Omeros (Deutsche Bank)
- $550.0
- 17%
- 30-Sep
$146.0
$85.0 $68.2 $40.7
3%
–5%
–30% –13%
3-Dec 10-Aug 7-Oct
- Onyx Pharmaceuticals
- $851
- China Nuokang (Jefferies)
- 9-Dec
Licensing /collaboration Researcher Investor
Value
Venture capital
($ millions) Deal description
$1,924 Develop small molecules against four central nervous system disease targets
Amount raised
($ millions)
- PTC
- Roche
Round number Date closed
NA
Therapeutics
Company (lead investors)
- Nektar
- AstraZeneca $1,505 Worldwide rights to NKTR-118 for opioid-induced con-
stipation and NKTR-119 for pain without constipation
Clovis Oncologya (Domain, New Enterprise Associates, Versant, Aberdare, Abingworth, Frazier, ProQuest, company management)
- $145.0
- 21-May
- Incyte
- Novartis
- $1,310 Ex-US rights to INCB18424; in phase 3 for myelofibro-
sis; worldwide rights to preclinical INCB28060
- Zogenix (Clarus, Domain)
- $71.0
$70.0 $68.0 $60.0 $56.4 $55.0
2653NA 3
07-Dec 10-Nov 12-Aug 30-Jun 12-May 18-Feb
Targacept Exelixis
AstraZeneca $1,240 Worldwide rights to develop and commercialize major depressive disorder compound TC-5214
Sanofiaventis
BioVex (Forbion, Morningside, Ventech, MVM) Pacific Biosciencesb (Deerfield, Intel) Hyperion (Bay City Capital, Panorama Capital) NovImmune (BZ Bank) Sopherion (Zoticon Bioventures)
aLead investor not available. bSeries E extension.
>$1,161 Exclusive, worldwide rights to XL147 and XL765 in phase 1b/2 to treat cancer
ZymoGenetics Bristol-Myers $1,105 Codevelop and commercialize ZymoGenetics’ phase 1
Squibb
hepatitis C virus compound PEG-interferon lambda
>$1,075 Codevelop and commercialize therapeutics for obesity and related indications
Amylin Alder
Takeda Bristol-Myers $1,069 Worldwide rights to ALD518 for all indications, except
Squibb cancer
116
volume 28 number 2 february 2010 nature biotechnology