US Biotech Financings Up 25% In 1996

Biotechnology companies in the USA raised around $5.5 billion infinancings in 1996, an increase of 25% on the previous year, according to a report compiled by private merchant bank Burrill & Co.

There were 64 initial public offerings during the year, raising $1.4 billion, 46% up on funds raised through IPOs in 1995. The report says that last year also saw the largest private company financing of $60 million, that for Tularik (Marketletter October 21, 1996), along with record dollars in deal-making.

Strategic alliances accounted for an additional $2 billion in upfront and milestone payments, while mergers and acquisitions raised nearly $3.8 billion. The M&A total included an offer of over $1 billion from American Home Products for the 40% stake it did not already own in Genetics Institute (Marketletters passim).