ATPblog

Biotech Funding: Feel a Breeze From the IPO Window?

What do the following biotech stocks have in common - Anthera (NASDAQ:ANTH), Ironwood (NASDAQ: IRWD), Aveo (NASDAQ:AVEO), NeoVacs (EPA:ALNEV) and Nupathe (NASDAQ:PATH)? They are all biotech companies that achieved fundings through IPOs in 2010. And ALL are underwater compared to

The New Reality Starts to Hit Home

We all know the mantra of the post-credit crunch pharma and biotech world – lean, mean and focused in the era where cost-effectiveness is king. The message is that we have learnt from our mistakes of the past, embracing now instead strategic flexibility and a global focus on delivery of healthcare to the individual. The industry has made lots of resolutions – but is it walking the walk as well as talking the talk?

Value creation: Are pure-plays better than hybrids?

In this research note, we consider the value and merits of using a pure-play business model (i.e. biotech R&D pipeline, or cash generating services business) against the hybrid approach. Several case studies from the market suggest there may be greater value in focus.

Is MYRX a biotech value play?

Myriad Pharmaceuticals (NASDAQ: MYRX), is a spin-off from Myriad Genetics (NASDAQ: MYGN) which was effected in June 2009. MYRX is focused on developing an R&D stage pipeline (with cash burn). MYGN is focused on a service business providing genetic testing (profitable). MYRX is valued at less than cash,

Look Behind the Numbers...

A recent article from FierceBiotech discusses the last year’s share price recovery of CRO stocks in the US. It refers to a panel at the recent Partnerships in Clinical Trials conference in Orlando:

Another grim day for big science…

Technology investing is, at some level, built on a foundation of science.   Converting knowledge into commercially successful products requires a mix of skills, of which scientific excellence is only one (spotting a ripe product opportunity is at least as difficult as finding the technological solutions

Biomarkers: A Band-Aid for Bioscience?

 

INTRODUCTION

There is no disputing that the pharmaceutical industry has a problem.  It is widely acknowledged that R&D productivity is declining, with new drug registrations falling to their lowest levels for almost half a century.  Genuine medical advances are rare – those products that are registered increasingly offer only a small

Declining Exclusivity: are Patents now Redundant?

Because new medicines have such a high burden of R&D costs to recuperate, their commercialisation in a protected environment is essential to the innovator business model. That protection has historically been offered through the patent system, but for how much longer, given the increasing time taken to innovate?

And an IPO window is an even more distant panacea...

...as evidenced by two IPOs that went out in 2010, with substantial haircuts:

Anthera Pharmaceuticals, reported in WSJ:

Acquisitions & Licensing: No Panacea

A recent Lex article from the FT highlights some of the recent deals done, both acquisitions and licensing, between big pharma and biotechs. Usefully, it serves to remind us, that while the popular headlines capture pharma's and bigger biotech's need to buy-in research programs from R&D stage companies, this is no sure thing for earlier stage companies.

A Penny for Your Thoughts - how much value does an idea have today?

I remember very well a meeting in the mid 1990s when a venture capital partner told me that “a good idea is worth a million’. He didn’t specify whether his bon mot was denominated in pounds, dollars or euros, but as an inventor of early stage technologies it was music to my ears.  Perhaps more importantly, he didn’t specify

A Pharma Stock "Stocking Filler" - LLY

Part of our remit at ATPBio is to uncover value within the healthcare sector. More usually, this is in the form of working with clients to assist with strategy, asset work-up, due diligence and identifying key value drivers. Though, as we approach the festive season and thoughts turn

To be or not to be: The Pros and Cons of the Virtual Biotech Company

 

It is more than a decade since the classical model of a biotech company ruled unchallenged: the glass-fronted building on the gleaming modern science park, with the best part of a hundred doctoral level scientists working seemingly double shifts to deliver an entire pipeline of high value

Creative Financing - in a brave new world

This month we were invited to participate on a panel at UK Trade and Investment (UK TI) in Boston looking at issues affecting life sciences companies across both sides of the Atlantic. Several of the interesting presentations focused on experiences of companies in the US and UK, each

M&A Trials: Importing a Culture

In March this year, Roche and Genentech agreed to a friendly acquisition of Genentech, in a deal valued at $46.8 billion. Obvious attractions for the deal included access to Genentech's lead cancer drugs and a highly regarded

Creative financing - the Vertex way

Does the current pain of financing just affect small underfunded companies, with weak pipelines? It seems not. Last month, Vertex announced it was selling its European milestone payments for its ph III program, Telaprevir for hepatitis C. Key points in the release, regarding the value of these

Tough medicine: Schwarzenegger plan to slash $26 billion deficit

How do governments get out the growing mountain of debt, balance their budget deficits, and avoid crippling their own economies going forward? Simple: spend less and earn more.

Arnold Schwarzenegger, Governor of California has taken it one step further and

Hard times, Harder times

No-one is any doubt that these are hard times for life sciences companies. Some commentators have even suggested that these are the hardest times. The cause is obvious enough: the paucity of capital that has blighted the ‘real’ economy has been felt even harder in the cash-hungry world of

Is India still shining?

A recent report by the Centennial Group,  highlighted in a FT columnist article discusses "What India must do if it is to be an affluent country". Findings in the report, and my own observations from recent trips, have three quite significant implications for the life sciences and

Better ways to spend £150 million

 

A recent Lex article (see below) from the FT highlights why the UK government's new £150 million venture fund is unlikely to stimulate much new venture creation or entrepreneurial spirit. A useful suggestion in the article is to concentrate on attracting and retaining the best talent to help drive