PARTNERING AND FINANCING STILL CONTINUE, BUT AT A SLOWER PACE
Financing and partnering deals tracked by Burrill & Company collectively brought in approximately $6.6 billion for US companies
in Q1, with more than $3.5 billion through financing and $3 billion in partnering capital. This total was the lowest raised
in any quarter since 2004.
Table 2. Selected venture capital deals in Q1 2008
The largest partnering deal in the quarter belonged to Genzyme and Isis Pharmaceuticals. Through their alliance, Genzyme will
develop and commercialize mipomersen, Isis's lipid-lowering treatment for high-risk cardiovascular patients. Deal terms could
add more than $1.1 billion. Genzyme will pay Isis $150 million to purchase five million shares of Isis common stock and a
$175 million upfront mipomersen license fee. In addition to this initial $325 million, Isis has the potential to receive significant
milestone payments for mipomersen, which is currently in Phase 3 trials. Once the product is launched, the two companies will
Table 3. US biotech financing ($M) in Q1 2008
Although deal flow continued at roughly the same pace as in the past several quarters, financing was slow in the first quarter
of 2008. The $837 million raised was the lowest since 2003. Topping the financing list was EKR Therapeutics, Inc., (Cedar
Knolls, NJ) a specialty pharmaceutical company focused on acquiring, commercializing, and maximizing the potential of proprietary
acute-care products, which completed a private placement of $50 million in Series D equity and $95 million in senior debt.
M&As ARE STILL HOT
Takeda Pharmaceuticals' announced $8.8 billion acquisition of Millen-nium Pharmaceuticals, which helped Millennium's share
price to close April up a whopping 60%, highlighted the fact that the M&A trends that have been hot in biotech land during
the past three years are not slowing down. We will continue to see these deals throughout the year. Pharma has come to rely
on biotech for innovation. Both Big Pharma and Big Biotech will continue to compete for companies with advanced product pipelines
and important technologies.
G. Steven Burrill is the chief executive officer at Burrill & Company, San Francisco, CA, 415.591.5400, email@example.com