A Look at the Developments in Biotechnology Financing, Including the Alliances and Deals Made between Biotechnology and Pharmaceutical Businesses.DUBLIN, Ireland -- Research and Markets (http://www.researchandmarkets.com/reports/c31578) has announced the addition of Investment and Business Trends in Biotechnology: The Year 2004 in Review to their offering. Marking renewed confidence in the biotechnology sector, in 2004 the biotechnology industry experienced an upswing Upswing An upward turn in a security's price after a period of falling prices. in initial public offerings (IPOs), private equity financings Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. , and pharmaceutical corporate partnerships for lead compounds. Despite this reinvigorated re·in·vig·o·rate tr.v. re·in·vig·o·rat·ed, re·in·vig·o·rat·ing, re·in·vig·o·rates To give new life or energy to. re activity, pharmaceutical companies and investors are proceeding in a battle-tempered mode of cautious optimism. The deals and alliances of 2004 highlight growing trends that will impact both the pharmaceutical and biotechnology industries in the near future. In this report, we discuss major trends in biotechnology financing and dealmaking in 2004 and describe selected corporate deals and alliances among biotechnology and pharmaceutical companies. In addition, we examine the dynamics of the relationship between these industries, and discuss how biotech bi·o·tech n. Informal Biotechnology. biotech Noun short for biotechnology Noun 1. companies can successfully adapt to these dynamics. Business Implications - In 2004, the biotechnology industry experienced an upswing in initial public offerings (IPOs), private equity financings, and corporate partnerships for lead compounds. More than 50 biotechnology companies Top 100 Biotechnology Companies The following is a list of the top 100 biotechnology companies ranked by revenue. The first nine companies qualify for the list of the top 50 pharmaceutical companies. completed IPOs worldwide, with 28 companies going public in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Investments and dealmaking favored companies with products in clinical development and highly validated leads and targets. - The birth of venture capital (VC) mega-funds affected biotechnology private equity financing considerably. Because VC mega-funds need to make large investments, they seek out lower-risk deals. VCs in 2004 principally invested in companies with pipelines of late-stage clinical candidates and with major corporate partnerships. This trend is creating a financing gap for early-stage companies. - In 2004, pharmaceutical companies strongly favored biotech companies with drugs in late-stage clinical trials or with highly validated preclinical preclinical /pre·clin·i·cal/ (-klin´i-k'l) before a disease becomes clinically recognizable. pre·clin·i·cal adj. 1. candidates. Alliances reflected a demand for higher degrees of target validation See validate. validation - The stage in the software life-cycle at the end of the development process where software is evaluated to ensure that it complies with the requirements. , a shift toward lead identification, a preference for technologies likely to yield drug candidates in the near term, and a greater demand for biotechnology companies to share risk. - Biotech companies that incorporated change, forward integration, and adaptation into their business models have attained higher values than those that remained married to their initial core technologies. Most companies that continued to concentrate on original core technologies have remained small-cap companies. The ability and will to adapt to the pharmaceutical industry's changing needs and tastes is critical for success. - As the number of biotechnology lead compounds proceeding through late-stage development increases, the industry must brace brace: see drill. (character) brace - left brace or right brace. for the inevitable wave of upcoming failures in late-stage clinical trials due to typical compound attrition Attrition The reduction in staff and employees in a company through normal means, such as retirement and resignation. This is natural in any business and industry. Notes: . This scenario may shift future corporate partnerships and investments back toward platform technologies that aid in the selection of better drug targets, pathways, and leads. Topics Covered Overview Equity Financing Corporate Partnerships Dynamics of the Industry and the Need to Adapt Outlook for the Life Sciences Industry List of Tables and Figures Table 1. 2004 U.S. Biotechnology Initial Public Offerings Table 2. Selected Target Identification and Target Validation Deals Table 3. Selected Lead Identification and Lead Optimization optimization Field of applied mathematics whose principles and methods are used to solve quantitative problems in disciplines including physics, biology, engineering, and economics. Deals Table 4. Selected Lead Development Deals Figure 1. 2004 US IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. Companies: Amounts Raised Compared with Amounts Anticipated Companies Mentioned - Acadia Pharmaceuticals - Alnylam - Anadys - Archemix - Artemis Pharmaceuticals - Artemis Pharmaceuticals - Artemis Pharmaceuticals - AstraZeneca - Auxilium Pharmaceuticals - Aventis - Barrier Therapeutics therapeutics Treatment and care to combat disease or alleviate pain or injury. Its tools include drugs, surgery, radiation therapy, mechanical devices, diet, and psychiatry. - BG Medicine (formerly Beyond Genomics) - Biovitrum - Celera Diagnostics - Celera Genomics - Corcept Therapeutics - Corgentech - CoTherix - Critical Therapeutics - Cytokinetics - Dynavax - Evotec Neurosciences - Eyetech Pharmaceuticals - Genentech - GlaxoSmithKline - Gruenenthal - GTx - Idenix Pharmaceuticals - Immunicon - Ingenium Pharmaceuticals - Ingenium Pharmaceuticals - Inhibitex - Johnson & Johnson - Lexicon Genetics- Mannkind - Memory Pharmaceuticals - Merck - Metabasis Pharmaceuticals - Momenta Pharmaceuticals - NeuroSearch - New River Pharmaceuticals - Perlegen Sciences - Perlegen Sciences - Perlegen Sciences - Pfizer - Qiagen - Renovis - Rheoscience - Santarus - Schering AG - Senomyx - Takeda - Tercica - Theravance - Wyeth - Xcyte Therapies - Xenogen For more information visit http://www.researchandmarkets.com/reports/c31578 Source: Decision Resources, Inc. |
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