1. Scrip
  2. >>Business
  3. >>Strategy

The Trouble with Spin-Offs

 
• By Michael Lytton

Drug firms have created relatively few venture-financed spin-offs. The central reason--the valuation impasse between VC and pharma--is as much pscyhologically rooted as financially.

Q: Why are there relatively few venture-financed spin-offs from pharmaceutical companies, despite the apparent attractiveness of this type of transaction to both venture funds and pharma companies?

A: Not for lack of trying by parties on both sides of these proposed transactions. Yet few of these deals are ultimately consummated—and far more of those few that are...

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
Start Free Trial

Already a subscriber?

More from Strategy

Deal Watch: QurAlis Targets Fragile-X Syndrome In Deals With Quiver, UMass

 
• By Joseph Haas

Plus the end of Sanofi’s six-target alliance with IGM, OmniAb’s deals with Veraxa and Angelini, alliances involving Skye/Arecor, Genprex/UTHealth Houston and more.

GSK’s Nucala Set For Dupixent Face-Off After FDA COPD Nod

 
• By Kevin Grogan

The UK major's asthma drug gets a key expanded approval.

Zydus To Continue Mirabegron Sales, Looks To World-First Dual Shigella-Typhoid Vaccine

 
• By Vibha Ravi

Zydus expects strong mirabegron sales in FY26 amid US litigation even as it builds a growth pillar in vaccines with a world-first, Gates Foundation-aided dual shigella-typhoid vaccine under development and others on the WHO prequalified list

Challenging Environment For Biopharma Is A Tailwind For Royalty Pharma

 
• By Jessica Merrill

The royalty revenue stream acquirer has around 40 products in its portfolio and expects to generate roughly $3bn this year. Head of R&D and investments Marshall Urist talked about the investment strategy at the RBC Healthcare Conference.

More from Business

Challenging Environment For Biopharma Is A Tailwind For Royalty Pharma

 
• By Jessica Merrill

The royalty revenue stream acquirer has around 40 products in its portfolio and expects to generate roughly $3bn this year. Head of R&D and investments Marshall Urist talked about the investment strategy at the RBC Healthcare Conference.

Finance Watch: SV Closes Second Dementia Discovery Fund, Exceeding $250m Goal

 
• By Mandy Jackson

Private Company Edition: SV Health Investors revealed the final closing of its second Dementia Discovery Fund. Also, Eikon cut nearly 15% of its staff, Pathos AI raised $365m in series D venture capital and CellCentric completed a $120m series C round, among other financings.

Sanofi Makes Alzheimer’s Bet With Vigil Buy

 
• By Kevin Grogan

The French drugmaker is expanding its neurology activities with the $470m deal.