Bioscience Enterprise Forum – PharmaVentures

 

PharmaVentures  [www.pharmaventures.com] provide valuation, strategy, market insight and transaction services to the health care industry. 80% of their clients are from outside the UK . Tonight we had Finton Walton (CEO) speak to the forum about ‘ deal making in a risk averse environment for success…’. logo

Tonight’s notes:

  • tough to raise money now because we are in a risk averse environment
  • pharma experiencing patent cliff meaning a sudden drop in revenue is looming. Therefore decreasing R&D spend.
  • regulations and reimbursement is getting tougher
  • leading to fewer pharma companies that spend less = less partnering opportunities
  • deal making is making a recovery since GFC
  • collaboration R&D deals are declining
  • but big pharma still interested in early stage R&D – of interest to NZ
  • average deal value is decreasing
  • option-based deals reduce the risk for the license (capital linked to milestones). GSK tops the pharmas with respect to performing option-based deals. Amgen and AstraZeneca have the lowest levels.
  • only 12% of options are exercised within the first 2 years
  • pharma are worried about deals = competition is fierce
  • before GFC M&As involving spinouts or emerging companies were on the decline, now they are increasing
  • contingent value rights are options for shareholders of an acquired company
  • plan your company exit from the beginning. Forget IPOS, get to know your buys early on.
  • Pharmas looking to move research close to where the science is i.e. universities and institutes = more partnerships on the way
  • NBI (NASDAQ Biotech Index) out performs the NASDAQ even more so since GFC.
  • Finton mentioned that NZ has all the ingredients to attract foreign investment.

 

Graeme @ graemefielder.com

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s