Frost & Sullivan’s Post

The biotech investment landscape is evolving rapidly, driven by disruptive technologies and strategic shifts among major biopharmaceutical companies. 🌐💉 These changes are crucial for sustaining growth in biotech investments. Key strategic imperatives include: 📉 Geopolitical Chaos: Biopharma firms are prioritizing new platforms and techniques, enhancing resilience through diversification, and leveraging positive clinical trial results to attract investors. 🔬 Disruptive Technologies: Integrating omics data, exploring regenerative treatments, and addressing broader medical needs are vital for reinvigorating this sector. 💼Innovative Business Models: Licensing, partnerships, joint ventures, structured R&D financing, spinoffs, and divestitures are crucial for growth amidst uncertainty and a challenging macro-environment. Major biopharma companies are realigning portfolios and pursuing mergers and acquisitions (M&A) activities to tap into core growth areas and navigate the impending patent cliff. Discover comprehensive perspectives and strategic imperatives shaping global biotech investments with Frost & Sullivan's latest analysis. 📊🔍 https://hubs.la/Q02J4_PC0 #Biotech #Investment #DisruptiveTech #Biopharma #Innovation #RandD #MergersandAcquisitions #Healthcare

EBITDA multiples for recent biotech MA deals: 🔵 EBITDA multiples are attractive measure of a biotech's valuation. Often, a biotech start up is MA worthy when it starts gathering 'technology traction' rather than revenue traction. The last three years US biotech acquisitions analysis shows a superfluous EBITDA multiple valuations (range of 3-24 X). 🔴 Two Key factors associated with higher EBITDA multiples for biotech start ups: - High risk, high reward: Biotech carries inherent risks associated with research & development (R&D), regulatory hurdles, and market adoption. Higher multiples reflect the potential for blockbuster drugs. - Stage matters: Early-stage companies with promising pipelines attract premium valuations based on future potential, while later-stage players with commercial products see more moderate multiples based on current performance. #biotech #valuation #ebitdamultiple #investing #healthcare #pharmaceuticals #mergersandacquisitions #lifesciences #innovation #drugdiscovery

Exploring Biogen’s Strategic Journey in Biosimilars From strategic partnerships and acquisitions since 2012 to the recent gain from selling its stake in Samsung Bioepis, Biogen’s path in the biosimilar business has been a roller-coaster ride. This timeline highlights key events and decisions that have shaped the company's strategy. It’s a fascinating case study for anyone interested in biotech innovation and corporate strategy. What are your thoughts on these pivotal moves by Biogen? [References are embedded in the attached PDF]

🚀 𝙎𝙪𝙧𝙜𝙚 𝙞𝙣 𝙋𝙧𝙞𝙫𝙖𝙩𝙚 𝘽𝙞𝙤𝙩𝙚𝙘𝙝 𝙈&𝘼 𝘼𝙢𝙞𝙙 𝙎𝙡𝙤𝙬𝙚𝙙 𝙄𝙋𝙊 𝙈𝙖𝙧𝙠𝙚𝙩🔬 In 2024, while the biotech IPO market has plateaued, private biotech M&A has surged, reflecting a strategic shift in the industry. Here’s a quick summary of the latest trends: 1.   𝙍𝙞𝙨𝙚 𝙞𝙣 𝙋𝙧𝙞𝙫𝙖𝙩𝙚 𝘽𝙞𝙤𝙩𝙚𝙘𝙝 𝘿𝙚𝙖𝙡𝙨 📈 With IPOs slowing, pharmaceutical companies are increasingly turning to private biotechs for acquisitions. As of mid-July, 13 out of 26 major deals this year involved private biotechs, surpassing previous years’ figures. 2.   𝙈𝙖𝙩𝙪𝙧𝙚 𝙎𝙩𝙖𝙧𝙩𝙪𝙥𝙨 𝙞𝙣 𝙁𝙤𝙘𝙪𝙨 🧬 Many private biotechs are at a mature stage but haven’t yet gone public. This creates a unique opportunity for pharmaceutical companies to acquire promising drug candidates without the delays associated with IPOs. 3.   𝙄𝙣𝙘𝙧𝙚𝙖𝙨𝙚𝙙 𝘿𝙚𝙖𝙡 𝙎𝙞𝙯𝙚𝙨 💵 Not only has the number of private M&A deals increased, but their size has also grown. Seven deals this year exceeded $1 billion in value, and the median upfront cash involved is significantly higher than in previous years. 4.   𝙎𝙩𝙧𝙖𝙩𝙚𝙜𝙞𝙘 𝙎𝙝𝙞𝙛𝙩𝙨 🔄 Companies like Hi-Bio and Celsius Therapeutics are opting for acquisitions rather than IPOs, balancing the need for capital with strategic growth opportunities. This trend reflects a broader industry shift toward private market deals. 5.   𝙑𝙖𝙡𝙪𝙖𝙩𝙞𝙤𝙣 𝘿𝙮𝙣𝙖𝙢𝙞𝙘𝙨 📉 Lower valuations in the IPO market make private biotech assets more attractive and potentially less expensive for acquirers. This trend allows pharmaceutical companies to secure valuable assets at more favorable terms. SpenglerFox #Spenglerfox #Biotech #MergersAndAcquisitions #PrivateEquity #Pharmaceuticals #InvestmentTrends #LifeSciences #IPO #MarketTrends #Healthcare

1/2. Biopharma dealmaking by Patricia Giglio and Amanda Micklus 2022-https://lnkd.in/d9izfipH and 2023-https://lnkd.in/d9rf_PZs. 3. 2023-Biotech back in the mainstream by John Hodgson https://lnkd.in/ddGRVWBb. Key points: "1. The public equity markets for biotech struggled during the year, with fewer than 50 initial public offerings (IPOs), a drop in follow-on offerings, and debt financing virtually non-existent. 2. Closed public markets discourage venture investment, which was down one-third on its level in 2022 and down over 50% on the recent peak of 2021. That contraction in venture capital and public equity markets made biotech financing more dependent than ever on industrial funding through partnerships or via merger and acquisitions. 3. Even though the upper threshold for venture rounds was down, four of the largest ventures round were A rounds, suggesting renewed interest in novelty. 4. Apart from Acelyrin, which flopped after clinical failure of its anti-interleukin-17 mimetic, the stock prices of the companies with largest IPOs all performed well after flotation. 5. Most notable perhaps was RayzeBio, which raised $337 million in its IPO in September for its targeted radiopharmaceutical portfolio and was acquired in December by Bristol Myers Squibb in mid-December. Its almost as if investors lined up the deal at the IPO after-party."

What to expect for 2024: This year is looking like an up year for our industry, biotechnology & biopharma. With the expectation in financial markets that interest rates, now in a holding pattern, will fall, we open the door to increased IPOs and increased investor activity in biopharma. 8 biotech IPOs took place in 2023, which was a tough year. Meaning even modest improvements will take us above last year. Mergers and acquisitions increased substantially late in 2023 with 24 deals. This is expected with suppressed biotechnology firm prices due to less focus on long-term biotechnology investments. Looking forward to an upward trend and easier year in 2024 for biotechnology innovation. #biotechnology #pharmaceutical #womenentrepreneur #hughesbiopharma

🧬Why Partnering with Pharma?   These alliances offer unique funding options, elevate your appeal to investors, and provide expert insights for product innovation. Plus, they're a smart move for future-proofing your business against potential acquisitions. 🔎Here some benefits: - An alternative and/or complement to your fundraising. - Enhance your value to future investors. - Benefit from Pharma expertise for the development of your products. - Anticipate a potential acquisition of your company. 📢We regularly organize masterclasses entitled: "Building Partnership with Pharma, BD & Licensing." If you would like to attend, get in touch with us at the following address: contact@genchrome.com #pharmapartnership #BDlicensing #vcs #biotech #M&A

Pharma Partnering Summit taking place during 16th & 17th October 2024 in Boston, MA is one of the most prestigious in-person events for life science industry professionals. The aim of the summit is to help companies to expand their network, identify products, partners and investors. Register Now at: https://lnkd.in/d3AreQh3 #investment #innovation #research #pharma #network #lifesciences #event #management #conference #businessdevelopment #startup #startups #venturecapital #privateequity #funding #partnerships #event #pharmaceutical #pharmaceuticalindustry #biotechnology #biotech #pharmaceuticalcompanies #biotechnologyindustry #venturecaptial #investements #clinicalresearch #clinicaltrial #drugdevelopment #drugdiscovery #iplaw #dealmaker #conference #summits #therapeutics #digitalhealth #bioinformatics #licensing #collaboration #mergersandacquisitions #fundings #research #pharmamarketing #startups #partnering #clinicaldevelopment #preclinical #drugdelivery #fdaapproval #speakers #delegates #sponsors #lifesciences

Pharma Partnering Summit taking place during 16th & 17th October 2024 in Boston, MA is one of the most prestigious in-person events for life science industry professionals. The aim of the summit is to help companies to expand their network, identify products, partners and investors. Register Now at: https://lnkd.in/ddYMF-GZ #investment #innovation #research #pharma #network #lifesciences #event #management #conference #businessdevelopment #startup #startups #venturecapital #privateequity #funding #partnerships #event #pharmaceutical #pharmaceuticalindustry #biotechnology #biotech #pharmaceuticalcompanies #biotechnologyindustry #venturecaptial #investements #clinicalresearch #clinicaltrial #drugdevelopment #drugdiscovery #iplaw #dealmaker #conference #summits #therapeutics #digitalhealth #bioinformatics #licensing #collaboration #mergersandacquisitions #fundings #research #pharmamarketing #startups #partnering #clinicaldevelopment #preclinical #drugdelivery #fdaapproval #speakers #delegates #sponsors #lifesciences