Biotech Bread Winners of 2002

Private financings were down in 2002 across all sectors -- just 353 were completed, versus 438 in 2001 and 504 in 2002. The biggest stacks of money went to start-ups with the potential to bring numerous products to market, particularly to spin-offs. Quite a few of the big financings went to private companies that almost certainly would have launched a public stock offering if times were better. Start-ups lacking superstar pedigrees are now competing against public firms whose stock prices have fallen, as the dismal market encourages investors to expend their efforts on organizations and products that already exist. Cyclical as markets may be, this trend isn't likely to evaporate even if the financing climate warms up in 2002.

Times are hard all over, as a tally of 2002 health care financings makes plain: as of late November, just 353 private financings had been finalized across all sectors—biotechnology and pharmaceuticals, diagnostics and devices—down from 438 private financings completed in 2001, and way down from the 504 finalized in 2000. A cursory analysis shows that investors favored companies that offered them the most certainty of a quick return.

The biggest stacks of private money went to start-ups with the potential to bring numerous products to market. Spin-offs attracted...

Read the full article – start your free trial today!

Join thousands of industry professionals who rely on Scrip for daily insights

  • Start your 7-day free trial
  • Explore trusted news, analysis, and insights
  • Access comprehensive global coverage
  • Enjoy instant access – no credit card required

More from Strategy

Bristol Appoints AstraZeneca’s Massacesi As Next CMO

 

Chief Medical Officer Samit Hirawat will step down to pursue new career opportunities, the company said.

Deal Watch: Novartis Hopes To Ace Inflammatory Disease With Matchpoint Tie-Up

 

Plus deals involving Lilly/Gate Bioscience, Concentra/iTeos, Nicox/Kowa, Ajax/Schrodinger, I-Mab/Bridge Health, Otsuka/Cantargia, JCR/Acumen and more.

Viking Rapidly Advancing Oral And Injectable VK2735 For Obesity

 
• By 

In its Q2 update, Viking reported that Phase III trials of subcutaneous VK2735 are under way, and that it expects Phase II data for an oral formulation before year’s end.

AZ Poised To Bring Self-Administered C5 Inhibitor To Market

 

Gefurulimab will give AstraZeneca a new option to compete against Argenx’s Vyvgart Hytrulo, which is available subcutaneously.

More from Business

AZ Poised To Bring Self-Administered C5 Inhibitor To Market

 

Gefurulimab will give AstraZeneca a new option to compete against Argenx’s Vyvgart Hytrulo, which is available subcutaneously.

Roche Keen To Cut Out The Middle Men On US Pricing

 
• By 

The Swiss giant has been talking to the US government about selling medicines directly to patients.

Leo Looks To Grow In US After Hand Eczema Cream Approval

 
• By 

The Danish medical dermatology specialist doubles boosts its sales force ahead of the launch of Anzupgo.