Monday, June 27, 2022

Slowing in biotech investment

From economics blog Marginal Revolution, a statistic from the Financial Times: 
Just nine biotech companies have listed in the US this year, raising a total of $1bn, according to LifeSci Capital, a boutique investment bank. Almost 60 companies did so in the same period last year, tapping investors for $7.4bn.

 This corroborates what we've been seeing in the biotech media, including this recent article from FierceBiotech: 

The massive $15.9 billion haul for biopharma technology deals in 2021 was always going to be tough to beat, but dealmaking in 2022 is off at a snail's pace, with M&A, IPOs and fundraising all plummeting, according to a new report.

Funding for the world’s biopharma technology companies totaled $2.8 billion in the first quarter of the year, down 10%, according to CB Insights’ State of Biopharma Tech Q1’22 Report. This was the fourth consecutive quarter with a decline in deals, with just 66 signed for the months of January through March.

We already know that M&A has been slow—just ask anyone who came out of the J.P. Morgan Healthcare Conference in January disappointed with the slew of licensing deals. But the CB Insights report has the details: There was a 60% drop in M&A exits in the first quarter, with just six recorded, compared to 15 in the fourth quarter of 2021.

I imagine this will not really affect hiring per se, but it may slow down some of the wage growth that we're seeing for the Boston or San Francisco area for entry-level scientists... 

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looks like Blogger doesn't work with anonymous comments from Chrome browsers at the moment - works in Microsoft Edge, or from Chrome with a Blogger account - sorry! CJ 3/21/20