Welcome!

Web 2.0 Authors: Rick Delgado, Elizabeth White, Carmen Gonzalez, Pat Romanski, Liz McMillan

News Feed Item

Zoetis IPO Caps Strong Month for Life Sciences Financings

Companies Capitalize on Investor Enthusiasm to Raise Cash, Says Burrill & Company

SAN FRANCISCO, CA -- (Marketwire) -- 02/01/13 -- Life sciences financing activity got a strong start in the new year as companies raised $10.3 billion in January. The Pfizer animal health unit Zoetis was responsible for more than half the activity through a debt offering and the largest IPO since Facebook debuted in May 2012. The robust activity dwarfed the $4.2 billion raised during the same period a year ago, according to Burrill & Company.

Companies raised more than $6 billion during the month through debt offerings. This included Zoetis' heavily oversubscribed $3.7 billion bond deal ahead of its IPO. It also included nearly $1.3 billion in debt offerings from nine smaller therapeutics companies, as well as nearly $700 million raised in two medical device company financings.

The Zoetis IPO priced at $26, above its expected $22 to $25 range. Three other companies, LipoScience, an in vitro diagnostic company; Stemline Therapeutics, which is developing therapies that target cancer stem cells; and KaloBios Pharmaceuticals, a developer of next-generation antibodies, raised a combined $153 million through initial public offerings. That compares to $135 million raised through IPOs on U.S. exchanges a year ago. Almost $1.6 billion was raised by follow-ons in January, tripling January 2012's total, and reflecting the improved environment for public therapeutics companies seeking to raise capital.

"Enthusiasm in the market for life sciences has picked up following a positive JPMorgan Healthcare Conference, a strong year of FDA approvals capped with a flurry of activity in December, and the impressive returns the sector provided in 2012," says G. Steven Burrill, CEO of Burrill & Company, a global financial services firm focused exclusively on the life sciences. "Though the activity is encouraging, capital continues to be expensive and difficult to access for many companies, particularly those that have not yet commercialized products."


BURILL INDICES
                                                        Month     Year
Index                          12/31/2012   1/31/2013   Change    Change
Burrill Select                     607.66      634.23      4.4%         4.4%
Burrill Large Cap                  736.90      759.90      3.1%         3.1%
Burrill Mid-Cap                    309.52      332.44      7.4%         7.4%
Burrill Small Cap                  105.99      119.39     12.6%        12.6%
Burrill Diagnostics                191.32      202.54      5.9%         5.9%
Burrill Personalized Medicine      119.22      127.48      6.9%         6.9%
Burrill Biogreentech               162.27      175.67      8.3%         8.3%
NASDAQ                            3019.51     3142.13      4.1%         4.1%
DJIA                             13104.14    13860.58      5.8%         5.8%
S&P 500                           1426.19     1498.11      5.0%         5.0%
Amex Biotech                      1547.03     1661.17      7.4%         7.4%
Amex Pharmaceutical                369.57      394.99      6.9%         6.9%

On the venture capital front, life sciences companies globally raised nearly $1.1 million in January, about the same as a year ago. That included the $294 million investment in Brazil-based GraalBio, which will use the funding to develop cellulosic ethanol technologies at its first commercial facility located in Alagoas, Brazil. The $709 million raised by U.S.-based companies in January, though, is down about 14 percent from activity a year ago.

Global M&A activity for January reached $4.5 billion, down 32 percent from a year ago. Botox-maker Allergan's $958 million acquisition of MAP Pharmaceuticals, its partner in developing the experimental orally-inhaled migraine drug Levadex, was the largest transaction for the month. The acquisition reflects an effort by Allergan to expand its offerings to neurologists and pain specialists. The U.S. Food and Drug Administration is expected to decide on whether it will approve Levadex in April.

Global partnering deals fell to $2.1 billion in January, a 56 percent decline from levels a year ago. Gilead Sciences' collaboration with MacroGenics -- worth up to $1.1 billion -- covers the development and commercialization of bi-specific antibodies directed at four undisclosed targets chosen by Gilead. The biotech's proprietary Dual Affinity Re-Targeting platform, or DART, can engineer antibodies that can target multiple antigens, an area of growing interest among drug developers as they seek to increase the efficacy of their therapies by hitting multiple targets at the same time.

"The low numbers for partnering activity extend a downturn seen in 2012 in part because of fewer financial terms being disclosed," says Burrill. "But it also reflects a shift among larger pharmaceutical companies focusing more of their attention to academic and non-profit research institutions as they look for discovery- and early-stage candidates."


Life Sciences Scorecard in USD M
                                                YTD        YTD
                                              1/31/13    1/31/12    Change
Global Venture Capital                           1,144      1,064       7.5%
U.S. VC                                            795        826      -3.8%

IPOs (4 in 2013 vs 3 in 2012)                    2,253        262     759.9%
U.S. IPOs (4 in 2013 vs 2 in 2012)               2,253        135    1568.9%

Global PIPEs                                       184        158      16.5%
U.S. PIPEs                                         101         72      40.3%

Global Follow-ons                                1,585        477     232.3%
U.S. Follow-ons                                  1,585        477     232.3%

Global Other Equity                                 54        338     -84.0%
U.S. Other Equity                                   45        323     -86.1%

Global Debt Offerings                            5,783      2,593     123.0%
U.S. Debt                                        4,968      2,201     125.7%

Global Other Debt                                  263        338     -22.2%
U.S. Other Debt                                    226        334     -32.3%

Total Global Public Financings                  10,122      4,166     143.0%
Total U.S. Public Financings                     9,178      3,542     159.1%

Global Partnering                                2,082      4,713     -55.8%
U.S. Partner/Licenser                            1,889      2,676     -29.4%

Global M&A                                       4,859      6,720     -27.7%
M&A, U.S. Target                                 2,482      5,765     -56.9%

The FDA in January approved a trio of new drug treatments for type 2 diabetes. All three drugs, Nesina, Kazano, and Oseni will be distributed by Takeda Pharmaceutical and include the new molecular entity alogliptin, developed through a partnership between Takeda and Furiex Pharmaceuticals. Alogliptin helps stimulate the release of insulin after a meal, which leads to better blood sugar control. Nesina tablets contain alogliptin alone, while Kazano combines alogliptin with the already-approved metformin hydrochloride and Oseni combines it with pioglitazone.

The agency also approved Kynamro, a new injectable cholesterol-lowering drug co-developed by Genzyme and Isis Pharmaceuticals, despite liver safety concerns. Kynamro, also known as mipomersen, is approved to treat people with homozygous familial hypercholesterolemia, an inherited condition that causes high levels of low-density lipoprotein cholesterol levels beginning at birth, and heart attacks at an early age. The approval comes about one month after Aegerion Pharmaceuticals won U.S. approval for Juxtapid, another medicine for the disorder that comes in pill form.

The European Commission announced the winners of its Future and Emerging Technologies Flagship Initiative, the largest single science competition to be held in Europe to date. Each will receive $1.36 billion (EUR 1 billion) over ten years. The Human Brain Project was named as one of the winners. It will create the world's largest experimental brain research facility and seeks to develop a detailed model of the human brain so researchers can study how it works and ultimately develop personalized treatments for neurological and related diseases.

The California Institute for Regenerative Medicine -- California's stem cell agency backed by a $3 billion ballot initiative -- said its board has adopted a framework of proposals that could "dramatically change some aspects of its work." The proposals are aimed at addressing criticism over potential conflicts of interest in the way the board decides how to allocate grants and come in response to a series of recommendations from the Institute of Medicine. The IOM made those recommendations as part of a report requested by the agency, which was seeking an independent assessment of its programs, operations, strategies, and performance.

"CIRM's funding is expected to last about four more years, but there are many who hope it will have a life that extends well beyond that period," says Burrill. "It's vital that it has credibility and the public's trust if it is to continue its mission far into the future."

About Burrill & Company
Founded in 1994, Burrill & Company is a diversified global financial services firm focused on the life sciences industry. With $1.5 billion in assets under management, the firm's businesses include venture capital/private equity, merchant banking, and media. By leveraging the scientific and business networks of its team, Burrill & Company has established unrivaled access and visibility in the life sciences industry. This unique combination of resources and capabilities enables the company to provide life sciences companies with capital, transactional support, management expertise, insight, market intelligence, and analysis through its investments, conferences, and publications. Headquartered in San Francisco, the company oversees a global network of offices throughout the United States, Latin America, Europe, and Asia. For more information visit: www.burrillandco.com.

Add to Digg Bookmark with del.icio.us Add to Newsvine

Contact:
Daniel Levine
Managing Director
Burrill & Company
Email Contact
415-591-5449

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories

SUNNYVALE, Calif., Oct. 20, 2014 /PRNewswire/ -- Spansion Inc. (NYSE: CODE), a global leader in embedded systems, today added 96 new products to the Spansion® FM4 Family of flexible microcontrollers (MCUs). Based on the ARM® Cortex®-M4F core, the new MCUs boast a 200 MHz operating frequency and support a diverse set of on-chip peripherals for enhanced human machine interfaces (HMIs) and machine-to-machine (M2M) communications. The rich set of periphera...

The Internet of Things (IoT) is making everything it touches smarter – smart devices, smart cars and smart cities. And lucky us, we’re just beginning to reap the benefits as we work toward a networked society. However, this technology-driven innovation is impacting more than just individuals. The IoT has an environmental impact as well, which brings us to the theme of this month’s #IoTuesday Twitter chat. The ability to remove inefficiencies through connected objects is driving change throughout every sector, including waste management. BigBelly Solar, located just outside of Boston, is trans...
SYS-CON Events announced today that Matrix.org has been named “Silver Sponsor” of Internet of @ThingsExpo, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Matrix is an ambitious new open standard for open, distributed, real-time communication over IP. It defines a new approach for interoperable Instant Messaging and VoIP based on pragmatic HTTP APIs and WebRTC, and provides open source reference implementations to showcase and bootstrap the new standard. Our focus is on simplicity, security, and supporting the fullest feature set.
Predicted by Gartner to add $1.9 trillion to the global economy by 2020, the Internet of Everything (IoE) is based on the idea that devices, systems and services will connect in simple, transparent ways, enabling seamless interactions among devices across brands and sectors. As this vision unfolds, it is clear that no single company can accomplish the level of interoperability required to support the horizontal aspects of the IoE. The AllSeen Alliance, announced in December 2013, was formed with the goal to advance IoE adoption and innovation in the connected home, healthcare, education, aut...
SYS-CON Events announced today that Red Hat, the world's leading provider of open source solutions, will exhibit at Internet of @ThingsExpo, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Red Hat is the world's leading provider of open source software solutions, using a community-powered approach to reliable and high-performing cloud, Linux, middleware, storage and virtualization technologies. Red Hat also offers award-winning support, training, and consulting services. As the connective hub in a global network of enterprises, partners, a...
The only place to be June 9-11 is Cloud Expo & @ThingsExpo 2015 East at the Javits Center in New York City. Join us there as delegates from all over the world come to listen to and engage with speakers & sponsors from the leading Cloud Computing, IoT & Big Data companies. Cloud Expo & @ThingsExpo are the leading events covering the booming market of Cloud Computing, IoT & Big Data for the enterprise. Speakers from all over the world will be hand-picked for their ability to explore the economic strategies that utility/cloud computing provides. Whether public, private, or in a hybrid form, clo...
Software AG helps organizations transform into Digital Enterprises, so they can differentiate from competitors and better engage customers, partners and employees. Using the Software AG Suite, companies can close the gap between business and IT to create digital systems of differentiation that drive front-line agility. We offer four on-ramps to the Digital Enterprise: alignment through collaborative process analysis; transformation through portfolio management; agility through process automation and integration; and visibility through intelligent business operations and big data.
Be Among the First 100 to Attend & Receive a Smart Beacon. The Physical Web is an open web project within the Chrome team at Google. Scott Jenson leads a team that is working to leverage the scalability and openness of the web to talk to smart devices. The Physical Web uses bluetooth low energy beacons to broadcast an URL wirelessly using an open protocol. Nearby devices can find all URLs in the room, rank them and let the user pick one from a list. Each device is, in effect, a gateway to a web page. This unlocks entirely new use cases so devices can offer tiny bits of information or simple i...
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace.
The Internet of Things (IoT) is going to require a new way of thinking and of developing software for speed, security and innovation. This requires IT leaders to balance business as usual while anticipating for the next market and technology trends. Cloud provides the right IT asset portfolio to help today’s IT leaders manage the old and prepare for the new. Today the cloud conversation is evolving from private and public to hybrid. This session will provide use cases and insights to reinforce the value of the network in helping organizations to maximize their company’s cloud experience.
Things are being built upon cloud foundations to transform organizations. This CEO Power Panel at 15th Cloud Expo, moderated by Roger Strukhoff, Cloud Expo and @ThingsExpo conference chair, will address the big issues involving these technologies and, more important, the results they will achieve. How important are public, private, and hybrid cloud to the enterprise? How does one define Big Data? And how is the IoT tying all this together?
TechCrunch reported that "Berlin-based relayr, maker of the WunderBar, an Internet of Things (IoT) hardware dev kit which resembles a chunky chocolate bar, has closed a $2.3 million seed round, from unnamed U.S. and Switzerland-based investors. The startup had previously raised a €250,000 friend and family round, and had been on track to close a €500,000 seed earlier this year — but received a higher funding offer from a different set of investors, which is the $2.3M round it’s reporting."
The Industrial Internet revolution is now underway, enabled by connected machines and billions of devices that communicate and collaborate. The massive amounts of Big Data requiring real-time analysis is flooding legacy IT systems and giving way to cloud environments that can handle the unpredictable workloads. Yet many barriers remain until we can fully realize the opportunities and benefits from the convergence of machines and devices with Big Data and the cloud, including interoperability, data security and privacy.
All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. Over the summer Gartner released its much anticipated annual Hype Cycle report and the big news is that Internet of Things has now replaced Big Data as the most hyped technology. Indeed, we're hearing more and more about this fascinating new technological paradigm. Every other IT news item seems to be about IoT and its implications on the future of digital busines...
Cultural, regulatory, environmental, political and economic (CREPE) conditions over the past decade are creating cross-industry solution spaces that require processes and technologies from both the Internet of Things (IoT), and Data Management and Analytics (DMA). These solution spaces are evolving into Sensor Analytics Ecosystems (SAE) that represent significant new opportunities for organizations of all types. Public Utilities throughout the world, providing electricity, natural gas and water, are pursuing SmartGrid initiatives that represent one of the more mature examples of SAE. We have s...
The Internet of Things needs an entirely new security model, or does it? Can we save some old and tested controls for the latest emerging and different technology environments? In his session at Internet of @ThingsExpo, Davi Ottenheimer, EMC Senior Director of Trust, will review hands-on lessons with IoT devices and reveal privacy options and a new risk balance you might not expect.
IoT is still a vague buzzword for many people. In his session at Internet of @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, will discuss the business value of IoT that goes far beyond the general public's perception that IoT is all about wearables and home consumer services. The presentation will also discuss how IoT is perceived by investors and how venture capitalist access this space. Other topics to discuss are barriers to success, what is new, what is old, and what the future may hold.
Swiss innovators dizmo Inc. launches its ground-breaking software, which turns any digital surface into an immersive platform. The dizmo platform seamlessly connects digital and physical objects in the home and at the workplace. Dizmo breaks down traditional boundaries between device, operating systems, apps and software, transforming the way users work, play and live. It supports orchestration and collaboration in an unparalleled way enabling any data to instantaneously be accessed on any surface, anywhere and made interactive. Dizmo brings fantasies as seen in Sci-fi movies such as Iro...
There’s Big Data, then there’s really Big Data from the Internet of Things. IoT is evolving to include many data possibilities like new types of event, log and network data. The volumes are enormous, generating tens of billions of logs per day, which raise data challenges. Early IoT deployments are relying heavily on both the cloud and managed service providers to navigate these challenges. In her session at 6th Big Data Expo®, Hannah Smalltree, Director at Treasure Data, to discuss how IoT, Big Data and deployments are processing massive data volumes from wearables, utilities and other mach...
This Internet of Nouns trend is still in the early stages and many of our already connected gadgets do provide human benefits over the typical infotainment. Internet of Things or IoT. You know, where everyday objects have software, chips, and sensors to capture data and report back. Household items like refrigerators, toilets and thermostats along with clothing, cars and soon, the entire home will be connected. Many of these devices provide actionable data - or just fun entertainment - so people can make decisions about whatever is being monitored. It can also help save lives.