First-half 2013 sees fall in licensing, says Evaluate

Despite a positive start to the year characterized by healthy initial public offering (IPO) activity and free-flowing venture capital, licensing deals, the life blood of the industry, have stalled, signaling that rising valuations could be pricing buyers out of the market.

The industry now faces the second half with cautious optimism over its ability to sustain some of the buoyancy seen in the first half, according to the newly-released, Pharma Half-Year Review 2013 report from Evaluate’s editorial arm.

Of note in the first half of 2013 was exceptional growth in the Nasdaq Biotechnology Index, a key valuation metric of small and medium-sized companies. The Index exceeded its previous record of 1,596.93 set 13 years earlier, growing 27% through June 30 - nearly equal to its growth for all of 2012. The Dow Jones US Pharmaceuticals Index showed similar gains at 21%. Compare this with the gains of 14% and 13% for the Dow Jones Industrial Average and S&P 500 respectively, and the amount of investment rushing into the pharma sphere becomes even more apparent.