Finance Watch: 2019 Ended With Near-Record VC Financings, But Some Slowing Expected In 2020

Private Company Edition: VC deals fell short of the record-breaking level seen in 2018 and financings may slow a bit more in 2020. Also, UPMC and Frazier close new VC funds, and Emendo raises $61m for gene-editing platform.

Finance Watch

Venture capital investment in biopharmaceutical companies during 2019 fell from the records set in 2018, but still came in second place by a wide margin, according to recent year-end wrap-ups – Silicon Valley Bank (SVB)’s annual Healthcare Investments & Exits report and the Venture Monitor report from Pitchbook and the National Venture Capital Association (NVCA).

SVB said drug developers in the US and Europe raised $15.64bn in 2019 versus $17.1bn in 2018, while Pitchbook and the NVCA said 866 biopharma firms brought in $16.6bn globally last year versus 831 that garnered $18.6bn in the prior year

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Finance Watch: Funding Alternatives Become The Norm In Tough Public Markets

 
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Public Company Edition: With fewer follow-on offerings, drug developers are pursuing other options. Axsome accessed up to $570m in debt, Evolus obtained $250m in a new credit facility and Abeona raised $155m from a PRV sale, but Apimeds was able to execute a small $13.5m IPO.

‘Market Developments’ Persuade Galapagos To Rethink Spin-Off

 

CEO Paul Stoffels exits early to be succeeded by Henry Gosebruch, who will now consider ‘all options’ for the Belgian firm as it tries to claw back investor confidence.

Azafaros Banks Over €130m To Advance Nizubaglustat Into Phase III

 
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The therapy has been developed for GM1 and GM2 gangliosidoses and Niemann-Pick disease type C.

Finance Watch: Deerfield Closes $600m-Plus VC Fund; Gates Speeds Up Health Investments

 
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Private Company Edition: Deerfield’s third innovations fund will back therapeutics and other opportunities, the Gates Foundation – a sometimes funder of biotech firms – will spend $200bn over the next 20 years, and NewLimit raised a $130m series B round, among other financings.

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As CEO Anderson backs high prices for innovative drugs in Europe

Stock Watch: Stock Watch: Lilly And Novo Duke Out Q1

 
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Novo Nordisk enjoyed a surprise GLP-1 agonist contracting win in the first quarter of 2025. This provided a welcome boost to its stock after it had spent the previous quarter on the back foot against rival Lilly.

Azafaros Banks Over €130m To Advance Nizubaglustat Into Phase III

 
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The therapy has been developed for GM1 and GM2 gangliosidoses and Niemann-Pick disease type C.