Locust Walk’s Post

Each quarter, Locust Walk's deal team compiles key statistics and trends on strategic transactions and financings. Our 2024 Q1 Report applies the latest data to analyze current activities in the life sciences deal landscape.  While the improvement in biopharma public markets signals a positive recovery for 2024, the slowdown in strategic deal making, ongoing stagnation in the private fundraising market, and delays in rate cuts suggest that the biotech recovery will continue to be a gradual process.    Click here to download the report: https://lnkd.in/e8kzcTR9    Next week, Locust Walk will release additional commentary on the present and future state of biopharma on our podcast, Biotalk.       #biopharma #markettrends #lifesciences #global #deals #financing #strategictransactions 

Q2 2024 Report from Locust Walk just reached the shores and it provides a lot of interesting insight over the first half of 2024. Biotech market conditions improved in Q2, driven by increased private market activity, while strategic deal making remained limited. The XBI diverged from the S&P 500 in Q2, mainly due to tailwinds in big tech and AI, rather than biotech headwinds. The continued boom in the AI/tech industry suggests a gradual return to biotech. However, conditions in the private and public biotech capital markets have improved substantially in H1 2024, with total deal value exceeding total value in 2023. Public biotech markets have improved but remain challenging for earlier-stage companies with less robust data. Only three new companies went public in Q2 2024, with two raising a concurrent PIPE. Average capital raised ($178M) in Q2 is up over 47% relative to the 2023 quarterly average, highlighting the accessibility of capital for more de-risked later-stage companies with strong data. Venture financing increased from Q1, making the best quarter in since 2021, signaling positive investor sentiment and belief in private investment exit potential. Average round size increased to $126M, with new investor participation in Series B and later deals reaching highest levels seen in the last 12 months. While the improvements in biopharma private and public markets signal a continued positive recovery for H2 2024, the downturn in strategic deal making and reliance on future rate cuts suggest that the biotech recovery will continue to be a gradual process. https://lnkd.in/g63t6Kcq #biotech #biotechfunding #medicalresearch #clinicalresearch #biopharma #licensingdeal #healthcareipo

Each quarter, Locust Walk's deal team compiles key statistics and trends on strategic transactions and financings. Our 2024 Q3 Report applies the latest data to analyze the current landscape in life sciences deals. In Q3, biopharma market conditions remained stable, with reduced venture financing balanced by the Fed's rate cut, public market financings, and XBI growth. While equity markets improved, the need for strategic licensing deals as a source of non-dilutive capital has somewhat eased but will still be crucial for private, early-stage biotechs, which are still in the early stages of recovery. Click here to download the report: https://lnkd.in/er87jvQ7   Next week, Locust Walk will release additional commentary on the present and future state of biopharma on our podcast, Biotalk.   #biopharma #markettrends #lifesciences #global #deals #financing #strategictransactions

“My advice to a biotech when outsourcing to a CDMO is really understand what you want. I don’t mean this as a criticism, but selecting a CDMO is most often not within your circle of competence." Read on to learn more from a successful #biotech and #CDMO investor. #drugdevelopment #biotechnology Shailesh Maingi; Frank Lis

Choosing the right #CDMO is a systematic selection process, so it's important to be methodical when outsourcing! Enjoy this great read from Louis Garguilo on finding the right CDMO for your needs, and remember that Singota Solutions offers a flexible, effective & efficient process that helps to close gaps, minimize line loss, and get your drug through the development pipeline faster! Reach out to us for more information on partnering with #singota.

It's undeniable that a thaw is occurring in the biotech funding space. While we would like to see more near-term activity, the data supports a strong rebound in mid-2024 and beyond, which will ultimately equate to increased leasing activity. #lifesciNYC #lifescience #labspace #biotech #biotechnology #ipo

If you're in #biotech and you're not paying attention to #adcs, our friends Joe Daccache, Ph.D., Tyler Menichiello, and Rebecca Bair think you're more than a little bit crazy. Tyler shows us why, using facts and figures collected by DeciBio to illustrate the deals supporting the hype, in his Bioprocess Online column here.

𝘽𝙞𝙤𝙩𝙚𝙘𝙝 𝙄𝙋𝙊𝙨 𝙎𝙡𝙤𝙬 𝘿𝙤𝙬𝙣, 𝘽𝙪𝙩 𝙋𝙧𝙚-𝙄𝙋𝙊 𝙁𝙞𝙣𝙖𝙣𝙘𝙞𝙣𝙜 𝙃𝙚𝙖𝙩𝙨 𝙐𝙥: 𝙄𝙨 𝙏𝙝𝙞𝙨 𝙖 𝙉𝙚𝙬 𝙏𝙧𝙚𝙣𝙙? The usual trajectory for promising biotech companies involved hitting the public markets after a couple of funding rounds. With the recent slowdown in IPO activity, we're seeing a shift. 𝗖𝗮𝘀𝗲 𝗶𝗻 𝗽𝗼𝗶𝗻𝘁: CG Oncology, the biotech who IPO’d this year, closed a massive $105 million Series F round just 5 months before going public, highlighting a growing trend of 𝐥𝐚𝐭𝐞-𝐬𝐭𝐚𝐠𝐞 𝐩𝐫𝐢𝐯𝐚𝐭𝐞 𝐟𝐢𝐧𝐚𝐧𝐜𝐢𝐧𝐠 in the biotech industry. Companies like FogPharma are staying private longer, even with eventual public market aspirations. They just secured Series E funding, including notable crossover investors like RA Capital, Fidelity, and Cormorant Asset Management, known for backing both public and private companies. 𝙒𝙝𝙖𝙩'𝙨 𝙙𝙧𝙞𝙫𝙞𝙣𝙜 𝙩𝙝𝙞𝙨 𝙩𝙧𝙚𝙣𝙙? Several factors are at play: 𝐒𝐥𝐨𝐰𝐞𝐫 𝐈𝐏𝐎 𝐦𝐚𝐫𝐤𝐞𝐭: With a less forgiving public market environment, companies are seeking alternative funding sources to advance their pipelines. 𝐈𝐧𝐜𝐫𝐞𝐚𝐬𝐞𝐝 𝐢𝐧𝐯𝐞𝐬𝐭𝐨𝐫 𝐢𝐧𝐭𝐞𝐫𝐞𝐬𝐭 𝐢𝐧 𝐩𝐫𝐞-𝐈𝐏𝐎 𝐬𝐩𝐚𝐜𝐞: As evidenced by FogPharma's round, seasoned investors are increasingly comfortable backing companies closer to commercialization, potentially offering higher return on investment. 𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐢𝐜 𝐚𝐝𝐯𝐚𝐧𝐭𝐚𝐠𝐞𝐬 𝐨𝐟 𝐬𝐭𝐚𝐲𝐢𝐧𝐠 𝐩𝐫𝐢𝐯𝐚𝐭𝐞: Staying private allows companies more flexibility in decision-making and avoids the short-term pressures often associated with public markets. The question remains: Will late-stage private financing become the new norm for the biotech industry?  #biotech #ipo #investing #privateequity

John Carroll and Chris Dokomajilar present a cautious optimism in the Endpoints News article for the life sciences / biotech sector this year, emphasizing a potential rebound in mergers and acquisitions (M&A), initial public offerings (IPOs), and venture funding. Following a slump, there's a significant uptick in M&A activity in Q4 2023, driven by Big Pharma's strategic acquisitions to fill pipeline gaps, suggesting a trend towards smaller, strategic deals continuing into 2024. IPO activity is hinted at possibly regaining momentum, with examples of successful early IPOs inspiring confidence,e.g., CG Oncology. Venture funding, however, faced a tough period, with investments cratering but showing signs of stabilization and potential recovery as investors adjust to a post-boom environment, looking towards M&A and IPOs for liquidity and growth opportunities. Hoping for rate cuts by the Fed. Yesterday did not help. Hopefully, March will be a different outcome. But more likely May/ June. Buckle up! #biotechnology #venturecapital #mergersandacquisitions

Interesting summary of changing investor perspectives based on lessons learned from 2023. Public investors appear more focused on later stage companies with VC firms making more substantive investments but in fewer companies Preclinical companies are working to control headcount to under 50-100. https://lnkd.in/e4nKksUr Weekly Roundup: BioPharma Dive: Daily Dive 01-13-2024&utm_term=BioPharma Dive Weekender #ipo #strategy #biotech