Q2 2018 Trends in Biopharma Transactions Report

Locust Walk is a global life science transaction firm. Our integrated team-based approach across capabilities, geographies, and industry segments delivers the right products, the right partners, and the most attractive sources of capital to get the right deals done for biopharma and medtech companies.

Each quarter, Locust Walk deal team members compile key statistics and trends on strategic transactions and financings. Our Q2 2018 Trends in Biopharma Transactions report applies the latest data to analyze current activities in the life science deal landscape. ​

In this quarter’s report you can find an overview and analysis of the following across the US, Europe, Japan, and China:​

  • Key performance indicators for the biopharma market​
  • IPO and private financing activity and performance​
  • Deal activity for strategic partnerships and M&A

Here’s a summary of Key Findings:

In the US

  • In Q2 2018 public and private biopharma markets remain strong with record breaking private financings, a strong IPO market, and stable M&A
  • Public biopharma market performance outpaced major indices even with global volatility; biopharma IPOs outperformed due to select strong performances​
  • Private financing remains on pace to surpass 2017 record highs in both volume and aggregate value
  • Licensing and M&A volume has remained relatively stable, with ‘mega’ deals driving M&A aggregate value past 2017 totals

In Europe

  • EU VC investment has been fast-paced and rising quickly in aggregate value – already almost at 2017 levels with 2 quarters left to go
  • The UK has dominated the region in number of deals (8) and aggregate value ($237M) for the quarter​
  • Five biopharma IPOs and two secondary public offerings close across EU and US based exchanges​
  • Though companies have historically seen the NASDAQ as the gold-standard for biotech IPOs due to the access to the large US capital pool, companies have had significant success in raising money on EU-based exchanges in 2018

In Japan

  • Stock prices of key biotech/biopharma companies have been showing a gradual decline in Q2 2018, despite steady progresses in R&D and successful deal makings;
  • Shares of the 39 major Japanese pharmaceutical companies listed on the 1st Section of Tokyo Stock Exchange (TSE1) were up 2.4%
  • Japan deal landscape has been active; 18 deals announced for licensing and M&A: Shionogi, Daichi Sankyo, Takeda

In China

  • China’s top 20 Pharmaceutical companies (-0.1%) by market capitalization have outperformed the SSE Composite Index (-10.1%) in 2018 Q2
  • No Chinese Biopharma going public in 2018 Q2
  • In-license deal volume continues to grow, 17 in-license deals have been announced in Q2
  • Chinese investors actively invest in not only domestic, but also overseas life science companies

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