US Biotech Deal-Making Led By R&D Efficiency

For the US biotechnology industry, the first quarter of this year was marked by deal-making outpacing financing, with mergers and acquisitions running a close second to collaboration, according to an analysis by Burrill & Craves, a US private merchant bank.

Leading the drive, says B&C, were programs focused on R&D technology platforms (as with the $100 million Isis-Boehringer Ingelheim collaboration in cell adhesion) or product programs (such as the $100 million Auriculin deal between Scios Nova and Genentech). Significant value was seen in merger and acquisition activities, including Glaxo's $533 million acquisition of Affymax in January (Marketletters passim).

B&C notes that five public offerings squeaked through, often with lowered valuations on completion, both by number of shares and price. Inhal Therapeutic Systems, for example, went out with a secondary offering at $9 per share for 2 million shares, but completed it at $8 per share for 1 million shares.