What started as a sluggish public market has metastasized to affect other types of financing. Debt fell off a cliff; partnerships are at previously unseen lows; mergers and acquisitions are scarce. With the initial public offering window close to shut, a measly four companies floated in the public markets; private equity, however, remained strong. Venture capital firms continued to raise money, promising continued investment for startups — and at the end of June, Arch announced the raising of a new $3 billion fund. The sizzle of special purpose acquisition companies (SPACs) — a way of raising money through an initial public offering (IPO) to buy another company that is less burdensome than a traditional IPO — has fizzled; just one had taken place by June 1, compared with 17 announced over the same period last year. Startups developing bispecific antibodies, messenger RNA vaccines, gene therapies and cell therapies all raised large rounds.

Stock market performance

More of the same in 2Q22 as in 1Q22, as biotech stock prices hemorrhaged along with the other exchanges.

Global biotech initial public offerings

After a woeful quarter for public floats in 1Q22, 2Q22 actually got worse.

Number of IPOs

 

1Q21

2Q21

3Q21

4Q21

1Q22

2Q22

Asia-Pacific

15

15

14

13

9

2

Europe

13

13

3

8

4

0

Americas

27

26

27

19

8

2

  1. Source: BCIQ BioCentury Online Intelligence

Global biotech financing

Partnerships are starting to show same malaise as other funding sources.

PIPE, private investment in public equity. Source: BCIQ BioCentury Online Intelligence.

Global biotech venture capital investment

Private investment remained steady … for now.

Number of rounds

 

1Q21

2Q21

3Q21

4Q21

1Q22

2Q22

Asia-Pacific

35

19

26

27

28

30

Europe

55

51

42

52

47

36

Americas

159

117

86

111

145

101

  1. Source: BCIQ BioCentury Online Intelligence

Top 10 venture financings of 2Q22

Company (lead investors)

Amount raised ($ millions)

Round

Date completed

Location

Focus

Tessera Therapeutics (Abu Dhabi Investment Authority, Alaska Permanent Fund, Altitude Life Sciences and others)

300

C

19 April

United States

Gene editing and writing using retrotransposases to insert RNA sequences into ‘safe-harbor’ retrotransposons in the genome

Kriya Therapeutics (Patient Square Capital, Bluebird Ventures, CAM Capital and others)

270

C

16 May

United States

AAV gene therapy encoding IGF1 and GLP-1R agonist for type I and II diabetes. Other programs in glycogen storage disorders, oncology and ophthalmology.

Upstream Bio (OrbiMed Advisors, Manuha, Access Biotechnology and others)

200

A

2 June

United States

Monoclonal antibodies against thymic stromal lymphopoietin in eosinophilic and non-eosinophilic asthma

Retro Biosciences (undisclosed investors)

180

Uncharacterized

6 April

United States

Lifespan-extending programs using cellular reprograming and plasma-based screens as well as autophagy-targeting compound

BostonGene (NEC Capital Solutions, Impact Investment Capital, Japan Industrial Partners)

150

B

6 April

United States

Patient-oriented interface integrating personal ‘omics and imaging data analysis to identify neoantigens, rank best suited combinations of immunotherapies and assess eligibility for trials

MOMA Therapeutics (Goldman Sachs Asset Management, Section 32, Pavilion Capital and others)

150

B

10 May

United States

Small molecules targeting enzyme ATPase domains in DNA and RNA helicases, chromatin remodelers and transmembrane transporters for oncology, inflammation and rare diseases

Aspen Neuroscience (GV, Lyfe Capital, Revelation Partners and others)

147.5

B

9 May

United States

Autologous iPS cell-derived neuron-like cells for replacement cell therapy in Parkinson’s disease

Doma Pharmaceuticals (Beijing BioCytogen, China Life Private Equity Firm, PICC Capital)

142.7

A

1 June

China

Umbrella corporation for incubating several companies; initial programs developing bispecific ADCs for cancer

RVAC Medicines (CBC Group, Pavilion Capital, EDBI, GS Holdings)

140

B

26 April

Singapore

Lipid nanoparticle-delivered mRNA vaccines and therapeutics with GMP manufacturing with a leading COVID-19 program

GI Innovation (SK, Yuhan, iMarketKorea and others)

134

Uncharacterized

21 April

South Korea

Bispecific antibodies in immune-oncology and allergies

  1. AAV, adeno-associated virus; ADC, antibody–drug conjugate; GLP-1R, glucagon-like peptide 1 receptor; GMP, good manufacturing practice; IGF-1, insulin-like growth factor 1; iPS cell, induced pluripotent stem cell. Source: BCIQ BioCentury Online Intelligence

Mergers and acquisitions

Target

Acquirer

Deal focus

Value ($ millions)

Date announced

BioHaven Pharmaceuticals

Pfizer

Migraine therapies for commercialization

11,600

24 May

Turning Point Therapeutics

Bristol Meyer Squibb

Oncology pipeline and repotrectinib, a tyrosine kinase inhibitor targeting proto-oncogene tyrosine-protein kinase ROS1 and neurotrophic tyrosine receptor kinase, drivers of non-small cell lung cancer and other advanced solid tumors

4,100

3 June

Sierra Oncology

GlaxoSmithKline

The late-stage targeted therapy momelotinib, an inhibitor of the BMP6/ACVR1/SMAD and IL-6/JAK/STAT3 pathways, resulting in restored erythropoiesis in myelofibrosis

1,900

13 April

Antares Pharma

Halozyme Therapeutics

Auto-injector used in EpiPen and others

960

13 April

Checkmate Pharmaceuticals

Regeneron

The late-stage immuno-oncology asset vidutolimod, an agonist of toll-like receptor 9 delivered in a virus-like particle for potential use in multiple tumor types

250

19 April

CellPoint

Galapagos

Decentralized supply model for cell-based therapies

132

21 June

AboundBio

Galapagos

Fully human antibody libraries with different binder formats

14

21 June

Orphazyme

KemPharm

Arimaclomol, molecular chaperon activator for Niemann–Pick disease and other neurodegenerative diseases

12

15 May

Affinity DNA

Genetic Technologies

Direct-to-consumer genetic testing

0.683

16 May

Atrin Pharmaceuticals

Aprea Therapeutics

ATR inhibitors, as monotherapies and in combination with standard of care in phase 1/2a clinical trials in solid tumor malignancies

Undisclosed

16 May

  1. ATR, ataxia telangiectasia and Rad3-related; ACVR1, activin A receptor type 1; BMP6, bone morphogenetic protein 6; IL-6, interleukin 6; JAK, Janus kinase; SMAD, suppressor of mothers against decapentaplegic; STAT3, signal transducer and activator of transcription 3. Source: BCIQ BioCentury Online Intelligence

Top 10 licensings/collaborations of 2Q22 by up-front cash

Researcher

Partner

Up-front cash ($ millions)

Description

Dragonfly Therapeutics

Gilead Science

300

Gilead and Dragonfly announce strategic research collaboration to develop natural killer cell engagers for oncology and inflammation

Intercept

Advanz Pharma

405

Advanz Pharma acquires rights to commercialize Ocaliva (obeticholic acid) to treat liver disease outside the US

Cullinan Oncology

Taiho Pharmaceuticals

275

Strategic collaboration to jointly develop and commercialize CLN-081/TAS6417, a pan-mutation EGFR inhibitor, and Taiho’s acquisition of Cullinan Pearl

Chimerix

Emergent Biosolutions

225

Emergent BioSolutions to acquire exclusive worldwide rights to Tembexa (brincidofovir), the first FDA-approved smallpox oral antiviral for all ages

Repare Therapeutics

Roche

125

Repare Therapeutics announces a worldwide license and collaboration agreement with Roche for camonsertib, an ATR inhibitor, for solid tumors

FG2

Shionogi

100

Shionogi and F2G enter strategic collaboration to develop and commercialize the new antifungal agent olorofim in Europe and Asia

BridgeBio

Bristol Myers Squibb (BMS)

90

BridgeBio announces exclusive license agreement with BMS to develop and commercialize BBP-398, a potentially best-in-class SHP2 inhibitor, for oncology

Precision Bioscience

Novartis

75

Precision BioSciences announces an in vivo gene editing collaboration with Novartis to develop treatment for disorders including sickle cell disease

Shanghai Henlius Biotech

Organon

73

Organon enters into a global license agreement to commercialize Henlius’s investigational Perjeta (pertuzumab) and Prolia/Xgeva (denosumab) biosimilar candidates

Immatics

BMS

60

Immatics and BMS expand strategic alliance to develop γδ allogeneic cell-therapy programs

  1. EGFR, epidermal growth factor receptor; SHP2, src homology region 2. Source: BCIQ BioCentury Online Intelligence

Top IPOs of 2Q22

Company (principal underwriters)

Amount raised ($ millions)

Date completed

Latest stage and focus

Percent change in stock price (as of 7/5/2022)

Exchange

HilleVax (J. P. Morgan, SVB Securities, Stifel, Nicolaus, Guggenheim Securities)

200

28 April

Phase 2: bivalent VLP-based vaccine for norovirus infections

−45

NASDAQ

PepGen (BofA Securities, SVB Securities, Stifel, Nicolaus, Wedbush PacGrow)

108

5 May

Phase 1: arginine-rich cell-penetrating peptide-conjugated phosphorodiamidate morpholino antisense oligonucleotides for degenerative neuromuscular diseases

−21

NASDAQ

Voronoi (Korea Investment and Securitues, Mirae Asset Securities)

62

24 June

Phase 1: small-molecule kinase inhibitors and protein degraders

NA

KRX

Belite Bio (The Benchmark Co.)

40.6

3 May

Phase 3: small-molecule retinal binding protein 4 antagonist to slow progression of dry AMD and Stargardt disease

256

NASDAQ

Microba Life Sciences (Bell Potter Securities, Canaccord Genuity (Australia))

22.6

4 April

Marketed (tools and services): metagenomics platform for connecting microbial genotype to human phenotype

−44

ASK (Australia)

  1. AMD, age-related macular degeneration; VLP, virus like particle. Source: BCIQ BioCentury Online Intelligence