Trends in Healthcare Investments and Exits 2019
Trends in Healthcare Investments and Exits 2019
IPO Boom Fuels Investment and Fundraising
MID-YEAR REPORT 2019
Follow @SVB_Financial Engage #SVBHealthcare
Table of Contents
Mid-Year 2019 Highlights
3
Healthcare Investments and Fundraising
5
Healthcare M&As and IPOs
24
Second Half of 2019 Outlook
35
Glossary
36
About the Authors
37
Trends in Healthcare Investments and Exits Mid-Year 2019
2
Mid-Year 2019 Highlights: Investments
US and Europe* Post Strong Investments and High Deal Values
? US healthcare venture fundraising is set for another strong year, but due to the number of big firms that closed new funds in 2018, it will likely fall short of the record $9.6B set last year. At the same time, recent IPO success in all sectors produced strong potential returns and likely an accelerated fundraising pace.
? Venture investment for full-year 2019 likely will land slightly below 2018's record haul, but it is on pace to rank a close second.
? Oncology did not lead biopharma Series A investments for the first time, as platform has now risen to the top. Highlighted by recent pre-clinical and phase I IPO and M&A activity, this trend signals investor and acquirer interest in very early-stage technologies that are applicable across multiple indications.
? Biopharma corporate investors re-engaged with early-stage Series A deals, and we see corporateonly equity rounds emerge alongside collaborations and options to buy.
? Despite concerns that CFIUS would silence China investment in US biopharma in 2019, the percentage of dollars invested by syndicates with China-based investors equaled 2018's pace.
? Device investment is on pace to surpass 2018, as device companies closed larger, later stage deals led by crossover and private equity firms.
? Dx/Tools Series A investment increased but overall investment is likely to decline in comparison to 2018. Dx Analytics companies leveraging artificial intelligence/machine learning (AI/ML) spurred deal flow in 1H 2019.
*We include US and European data for venture investment totals and Series A.
Trends in Healthcare Investments and Exits Mid-Year 2019
3
Mid-Year 2019 Highlights: Exits
Biopharma Leads IPO Flurry
? 1H 2019 saw 30 IPOs across all sectors, with 13 biopharma IPOs in May and June alone.
? While Venture-Capital (VC) backed biopharma exits typically occur at an early stage, these venturefunded assets have a track record of translating into clinically impactful therapies. Forty-two percent of FDA-approved drugs originated from VC-backed companies in the past decade.
? Six of the biopharma IPOs in 2019 were valued at $1B+ as of late June. Two private biopharma M&A deals had also reached $1B+ in total deal value.
? Impressive device IPOs and a spectacular M&A deal (Johnson & Johnson's $5.8B acquisition of Auris) drove total device exit value to surpass the full-year record only halfway through 2019.
? Four of five device IPOs were outperforming their IPO price at the end of June, with two cardiovascular-focused IPOs up more than 140%.
? Dx/Tools companies produced more value through IPOs than M&A deals in 1H 2019, buoyed by strong public offerings from Personalis and Adaptive Biotechnologies.
? Eight of 10 Dx/Tools IPOs since 2015 have generated significant market cap, with four companies valued at $1B+ as of late June.
Trends in Healthcare Investments and Exits Mid-Year 2019
4
Healthcare Investments and Fundraising:
Strong Capital Flow Continues
Trends in Healthcare Investments and Exits Mid-Year 2019
5
................
................
In order to avoid copyright disputes, this page is only a partial summary.
To fulfill the demand for quickly locating and searching documents.
It is intelligent file search solution for home and business.