Biopharma Market Dynamics and Challenges

Moving into 2021, the current market conditions indicate continued optimism for early stage and growth biopharma companies following a record year for private financings across the US, Europe and Asia. In the States, approval of two COVID-19 vaccines led biopharma indices and the S&P 500 to finish the year in an upswing. Across “the pond”, European biotech financings set a historical record in 2020 with no signs of slowing—considering Q4 had the highest volume to date—and were weighted more heavily towards earlier stage investments. Japan had another strong year in licensing and more noticeable in 2020 was the volume and total size of venture financing, which vastly surpassed the previous record set in 2018. And, China continued its torrid pace of in-licensing deals, featuring transactions with substantial size, including 6 deals with upfront payment of $30M and above.

Enter Locust Walk

For many emerging biopharma companies that need to raise capital via strategic partnerships or equity financings, we supplement a company’s C-suite or existing BD team with an expanded reach of capabilities, key contacts and long-standing relationships.

Locust Walk provides emerging biopharma companies with the strategic guidance and resources required to achieve their milestones and fulfill their potential. Since we don’t have the day-to-day pressures of managing a biopharma company, we can maintain a singular focus on helping to set strategy and then executing against the plan to deliver results for you regardless of the geographic focus of your deal.

Growth-oriented companies are often pursued as acquisition targets of other companies. Their best defense: Increasing scale and market valuation to stay beyond the reach of potential suitors and remain independent.  For those that ultimately are acquired, on clinical and commercial capabilities and pipeline can often increase deal value.  On the buy-side, most late-stage companies are looking to accelerate growth by bringing in additional clinical or commercial products.

Locust Walk is a market-maker with the ability to identify—uncovering overlooked assets—and transact target assets and companies across geographies, therapeutic areas, and modalities. Our comprehensive global footprint also enables the team to find assets wherever they reside.  Strategic deals and transactions can help enable a company to go public, get to a commercial stage more quickly, fill a critical pipeline gap, or simply add another product to a sales rep’s “bag” to complement existing marketed products.