Q1 2019 Global Trends in Biopharma Transactions

Each quarter, Locust Walk deal team members compile key statistics and trends on strategic transactions and financings. Our Q1 2019 Report: Global Trends in Biopharma Transactions applies the latest data to analyze current activities in the life sciences deal landscape. ​
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In this report you can find an overview and analysis of the following across the biopharma market in the US, Europe, and Asia (China and Japan):​

  • Key performance indicators for the life science market​​
  • IPO and private financing activity and performance​​
  • Deal activity for strategic partnership and M&A​
  • A look ahead and our predictions of the future 

HERE’S A SUMMARY OF KEY FINDINGS:

US

  • In Q1 2019, public biopharma markets recovered from the tumultuous end to 2018, with major biotech indices climbing over 20% in the quarter​
  • Biopharma IPOs had a slow start this year due to the closure of the federal government, which prevented the SEC from reviewing registration statements 
  • Private financing is robust and on pace to surpass 2018’s record highs in both volume and aggregate value
  • Licensing and M&A volume have decreased from 2018, but deal value has increased with ‘mega’ deals driving M&A aggregate value

Europe​

  • Private investment in Q1 2019 has been robust, reflecting a favorable environment for biopharma entrepreneurs and the high degree of innovation in EU biotechs​
  • Strong first quarter – a promising start to a great year for private financings​
  • Biopharmas seeking public capital in Q1 2019 experience the slowest start since Q1 2013

Japan​

  • Shares of the top 40 Japanese biotech companies have underperformed YoY Q1 2018 down by -22.8%, but is now in a general upward trend, recovering from the “SanBio Shock” in January 2019​
  • Although the activities of licensing deals with announced size of >$10M has been mild since the start of 2019, including deals with undisclosed deal value, in-licensing of late stage or oncology related assets is still the major interest by Japanese pharmaceutical companies​
  • First two gene therapies, KYMRIA by Novartis and COLLATEGENE by AnGes have been approved with a hope of emerging more development activities in the same field for Japan ​

China​

  • China stock market has gradually recovered in Q1 2019​
  • The Shanghai Stock Exchange (SSE) newly created a science and technology innovation board to focus on strategically emerging sectors including biomedicines, making pre-revenue company listing in the mainland ​
  • In-license deal volume in Q1 2019 slightly increased compared to 2018 Q4 (19 vs 16)​
  • US tightens scrutiny of foreign investment into the biotech sector. Foreign investments that result in a non-controlling equity stake in US biotech would be subject to review by CFIUS (Committee on Foreign Investment in the United States), which would drive China-based investors to shift investment focus on EU-based biotechs

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