Q3 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 Q3 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 biopharma markets in the US, Europe, Japan, and China:

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

In the US 

  • Biopharma valuation continues to outpace the broader stock market and is drawing significant investment dollars
  • Biopharma IPO market remains robust in Q3, with an increase in both the number of IPOs and total raised as compared to Q2
  • In Q3, biopharma private financings outpaced Q2 private financings, maintaining 2018’s pace to be a record-breaking year for private financings in deal volume, amount raised and company valuations
  • M&A activity more than doubled compared to Q2, while M&A deal value decreased due to fewer mega deals
  • Licensing deal volume and value decreased as compared to Q2, indicating easier access to capital continues to reduce the need for other forms of non-dilutive capital

In Europe

  • EU VC investment has been fast-paced and rising quickly in aggregate volume– surpassing 2017 levels
  • The UK has dominated the region in the number of deals (9) and aggregate value ($409M) for the quarter​
  • The IPO market has slowed down after a very impressive first half 2018
  • While oncology has continued to dominate licensing deals, dermatology led the way in terms of total deal value

In Japan

  • Stock prices of key biotech/biopharma companies have weakened again towards the end of Q3 2018 after a sharp recovery in August; stock prices of major Japanese pharmaceuticals continue to hold steady
  • The number of transactions has slightly slowed down for deals >$10M

In China

  • SSE Composite Index (-1.0%) have outperformed China’s top 20 Pharmaceutical companies (-11.7%) by market capitalization
  • 4 Chinese Biopharma companies went public
  • In-license deal volume is relatively stable with 15 in-license deals announced
  • Investment activity remains active in the China life science sector