US venture capital in novel R&D at decade high last year

US venture capital in novel research and development lead programs was at a decade high in 2014, according to a new report from the Biotech Industry Organization.

The report Emerging Therapeutic Company Investment and Deal Trends found, however, that Series A investments went to fewer companies and with fewer dollars versus 2013. Emerging company IPOs were also at a decade high in the USA, as were emerging company follow-on offerings. Research and development-stage acquisition volumes are returning to levels not seen since 2008, and nearly 70% of the industry clinical pipeline is attributed to small, emerging companies.

Of the emerging company pipeline, 43% is partnered. Late-stage compounds are more likely to be partnered than those at an earlier stage: 36% of emerging company drug indication programs in Phase I are partnered, whereas 51% in Phase III are partnered. Oncology makes up the largest percentage of the pipeline and accounts for the highest level of funding in Venture Capital, IPOs, FOPOs, and the highest annual deal amounts. Neurology and Infectious Disease are the second and third most funded areas for investment and deals and account for the third and fourth most clinical programs.