With the IPO market as bad as it's ever been and acquisitions uncertain, VCs are looking around for alternative exits for their late-stage companies. One strategy being discussed: selling their late-stage start-ups, to PE-backed private-company acquirers -- acquirers which are by and large still to be created. These mega-startups would have access to plenty of capital (just not public capital) and would be looking to build businesses all the way to profitability, at which point these could be sold to someone else or go public in a very liquid offering. But while there's enough money in private equity to accomplish the strategy, it's hardly straightforward - and for now the talk of this alternative path to liquidity through private equity is just that: talk.
Historically speaking, the first half of 2008 has not been the
worst period for biotech IPOs. But it’s damned close.
So far this year there have been at least two IPOs – Bioheart Inc. (which, after a year of...
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UroGen’s Zusduri was approved despite an advisory committee vote recommending against it in May. It is the first approved drug for a type of recurring bladder cancer.
Deal Snapshot: Including its internal efforts with bimagrumab, Lilly has been seeking a muscle-sparing therapy to complement GLP-1 obesity drugs, such as Zepbound.
Public Company Edition: Insmed raised $750m after reporting positive Phase IIb data in PAH, Cogent accessed up to $400m in new debt, Kelun-Biotech netted $250m in a placement of shares and ADC revealed a $100m private placement. In strategic updates, Recursion cut 20% of its jobs.
Deal Snapshot: Including its internal efforts with bimagrumab, Lilly has been seeking a muscle-sparing therapy to complement GLP-1 obesity drugs, such as Zepbound.
