2020 stands out as one of the best years ever for biotech financing across the globe. Stock indices remained up through December. Initial public offerings (IPOs) had a banner year, with >73 life science firms raising collectively >$22 billion. Thirty-three biotech-related special purpose acquisition companies (SPACs) — shell companies making an IPO that present private biotechs with an alternative to going public without a costly traditional flotation — raised a whopping $6.3 billion. Private fundraising also mushroomed, with a 37% increase in funds flooding in compared to the previous year, and private equity firms like Blackstone Life Sciences continued to expand into venture financing. Only mergers were off compared to previous years, as pharma showed a greater interest in partnerships. Chinese biotechs continued to flex their muscles, with seven of the top ten IPOs originating in Asia (last year, the region accounted for only four), and three of the ten biggest venture rounds last year also included Chinese biotechs LianBio, Everest Medicines and Mabwell Biotechnology.
Stock market performance
Biotech stocks were up over 20% on the year.
Global biotech initial public offerings
All regions had nearly triple IPO funding.
Number of IPOs
2016 | 2017 | 2018 | 2019 | 2020 | |
|---|---|---|---|---|---|
Asia-Pacific | 18 | 13 | 28 | 40 | 44 |
Europe | 23 | 26 | 16 | 8 | 14 |
Americas | 25 | 33 | 56 | 46 | 73 |
Global biotech financing
Money flowed into the sector from all avenues — none as great, though, as partnerships.
Global biotech venture capital investment
All regions brought risk capital.
Number of rounds
2016 | 2017 | 2018 | 2019 | 2020 | |
|---|---|---|---|---|---|
Asia-Pacific | 70 | 82 | 104 | 109 | 112 |
Europe | 195 | 182 | 171 | 176 | 178 |
Americas | 428 | 492 | 501 | 411 | 442 |
IPOs
Company (principal underwriters) | Amount raised ($ millions) | Date completed | Country | Change in stock price (as of 1/12/2021 |
|---|---|---|---|---|
SK Biopharmaceuticals (NH Investment & Securities, Citigroup Global Markets) | 799 | 2 July | South Korea | +21 |
AbCellera Biologics (Credit Suisse, Stifel, Nicolaus, Berenberg Bank, SVB Leerink, BMO Capital Markets) | 555 | 15 December | Canada | –32 |
RemeGen (Morgan Stanley, Huatai Securities, J.P. Morgan Securities, UBS, BOCI Asia, BOCOM International, Haitong International, Zhongtai Financial International) | 514 | 9 November | China | + 60 |
Legend Biotech (Morgan Stanley, J.P. Morgan, Jefferies) | 487 | 5 June | China | –21 |
Relay Therapeutics (Goldman Sachs, Cowen) | 460 | 15 July | United States | +14 |
Everest Medicines (Goldman Sachs, Bank of America, Citibank, CICC, Credit Suisse, Nomura, Brocade River) | 451 | 8 October | United States | +9.5 |
Akeso (Morgan Stanley) | 383 | 23 April | China | +100 |
Genor Biopharma (Goldman Sachs, Jefferies, J.P. Morgan Securities, CMB International Capital, China Renaissance, Haitong International, Macquarie Capital) | 371 | 6 October | China | Not available |
Gan & Lee Pharmaceuticals (Qiming Venture Partners) | 360 | 28 June | China | +46 |
Antengene (Goldman Sachs, J.P. Morgan, Citibank, CICC, CMB International Capital) | 359 | 19 Nov | China | –5 |
Licensing/collaboration
Researcher | Partner | Up-front cash ($ millions) | Description |
|---|---|---|---|
Genmab | AbbVie | 750 | Genmab grants AbbVie rights to co-develop and commercialize bispecific antibody products outside of the United States and Japan |
Blueprint Medicines | Roche | 1,702 | Blueprint Medicines grants Roche exclusive rights to pralsetinib to treat non-small-cell lung cancer, thyroid cancers and solid tumors outside the United States, excluding Greater China |
Seattle Genetics | Merck | 600 | Seattle Genetics partners with Merck to develop and commercialize cancer drugs ladiratuzumab vedotin and Tukysa (tucatinib) |
Denali | Biogen | 560 | Denali partners with Biogen to develop and commercialize LRRK2 program for Parkinson’s disease and certain TV platform–enabled programs for neurodegenerative diseases |
Dragonfly Therapeutics | Bristol Myers Squibb | 475 | Dragonfly Therapeutics grants Bristol Myers Squibb exclusive, worldwide rights to develop and commercialize Dragonfly’s IL-12 investigational immunotherapy program |
uniQure | CSL Behring | 450 | uniQure grants CSL Behring exclusive, worldwide rights to develop and commercialize etranacogene dezaparvovec to treat hemophilia |
Assertio Therapeutics | Collegium Pharmaceutical | 375 | Assertio Therapeutics grants Collegium Pharmaceutical US rights to Assertio’s Nucynta (tapentadol) franchise for pain |
Atea Pharmaceuticals | Roche | 350 | Atea Pharmaceuticals partners with Roche to develop and distribute AT-527 for COVID-19 |
Takeda | Arrowhead | 300 | Takeda and Arrowhead collaborate to co-develop and co-commercialize ARO-AAT for α1-antitrypsin-associated liver disease |
Translate Bio | Sanofi | 300 | Sanofi partners with Translate Bio to develop COVID-19 mRNA vaccine and for other infectious disease indications for up to $1.9 billion |
Apellis Pharmaceuticals | Orphan Biovitrum | 250 | Apellis Pharmaceuticals grants Swedish Orphan Biovitrum (Sobi) global co-development and exclusive ex-US commercialization rights to systemic pegcetacoplan (APL-2) |
Venture capital
Company (lead investors) | Amount raised ($ millions) | Round number | Country | Date completed |
|---|---|---|---|---|
Sana Biotechnology (Flagship Pioneering, Canada Pension Plan Investment Board, Baillie Gifford, F-Prime Capital Partners, Alaska Permanent Fund, GV, Bezos Expeditions, Omega Funds, Altitude Life Science Ventures) | 700 | Not disclosed | United States | 23 June |
Lyell Immunopharma (not disclosed) | 493 | C | United States | 5 March |
Grail (Flagship Pioneering, Canada Pension Plan Investment Board, Baillie Gifford, F-Prime Capital Partners, Alaska Permanent Fund, GV, Bezos Expeditions, Omega Funds, Altitude Life Science Ventures) | 390 | D | United States | 6 May |
CureVac (KfW) | 337 | Not disclosed | Germany | 15 June |
LianBio (BlackRock, Vida Ventures, Perceptive Advisors, Konstantin Poukalov, Venrock Healthcare Capital Partners, T. Rowe Price, Pfizer, Viking Global Investors, Wellington Management, RA Capital Management, Tybourne Capital Management) | 310 | Not disclosed | China | 29 June |
Mabwell Biotechnology (Shiyu Capital, Loyal Valley Capital, Ganzhou Development Investment Holding Group, Golden China Fund, Ningbo Gaoling Fund, Suzhou Ruihua, Nanshan National Fund) | 279 | A | China | 29 April |
Freeome (Perceptive Advisors, Janus Henderson Investors, Soleus Capital, Roche Venture Fund, Kaiser Permanente Ventures, Section 32, RA Capital Management, GV, EcoR1 Capital, Andreessen Horowitz, Cormorant Asset Management and others) | 270 | C | United States | 28 August |
Everest Medicines (Janchor Partners, RA Capital Management, Hillhouse Capital, Decheng Capital, Janus Henderson Investors, Rock Springs Capital, Octagon Capital, Guoxin Guotong Fund, CBC Group, Cormorant Capital, Pavilion Capital, HBM Healthcare Investments, existing investors) | 260 | C | United States | 4 June |
Thrive Earlier Detection (Section 32, Exact Sciences, Janus Henderson Investors, T. Rowe Price, Perceptive Advisors, Third Rock Ventures, Brown Advisory, Rock Springs Capital, Camden Partners, Invus, Lux Capital) | 257 | B | United States | 29 July |
Recursion Pharmaceuticals (Leaps by Bayer, Data Collective, Epic Ventures, Catalio Capital Management, Casdin Capital, Obvious Ventures, Samsara BioCapital, Intermountain Ventures, Lux Capital, Two Sigma Ventures, Advantage Capital, Mubadala Capital Ventures US, Felicis Ventures) | 239 | D | United States | 9 September |
Mergers and acquisitions
Target | Acquirer | Value ($ millions) | Date announced |
|---|---|---|---|
Immunomedics | Gilead Sciences | 21,000 | 13 September |
MyoKardia | Bristol Myers Squibb | 13,100 | 5 October |
Qiagen | Thermo Fisher Scientific | 11,500 | 3 March |
Momenta Pharmaceuticals | Johnson & Johnson | 6,500 | 19 August |
Forty Seven | Gilead Sciences | 4,900 | 2 March |
Principia Biopharma | Sanofi | 3,680 | 17 August |
VelosBio | Merck | 2,750 | 5 November |
Aimmune Therapeutics | Nestlé | 2,600 | 13 August |
Asklepios BioPharmaceutical | Bayer | 2,000 | 26 October |
Portola Pharmaceuticals | Alexion | 1,176 | 5 May |
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DeFrancesco, L. Financing breaks all records in 2020. Nat Biotechnol 39, 133–134 (2021). https://doi.org/10.1038/s41587-021-00817-7
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DOI: https://doi.org/10.1038/s41587-021-00817-7
