The public capital markets for life science IPOs today are in a fairly unique place. In Europe, the IPO market has remained relatively flaccid, characterized by an ongoing lack of tradable volume, limited ‘pools of capital’, and continuing wariness from institutional investors who have limited knowledge of the life sciences sector and therefore little appetite for such stocks. New Europe-wide financial market regulations (the now infamous ‘MiFID-II’) carry with them the prospect of an up to 75% decline in trading commissions, and the number of smaller stocks that are likely to be covered by Europe’s (few) remaining biotechnology analysts is limited and likely to remain that way. Thus, it is perhaps unsurprising that companies and shareholders are increasingly looking across the globe, to the United States and now beyond, for IPO opportunities.
Read MoreBig pharma flight from anti-infective R&D will create significant challenges for early-stage biotech companies seeking to develop novel and much needed drugs in this sector, as opportunities for partnerships, joint R&D relationships, and merger/acquisition transactions are diminishing.
Read MoreBig guns may have been fired up this week in the financing world with 6 of 12 Biotech IPOs debuting and raising more than $460M dollars. This figure however is dwarfed by the multi-billion dollar value of Merger & Acquisitions announced or offers made within healthcare during June to date -- and the month isn’t quite over yet!
Read MoreMany life sciences entrepreneurs have the mistaken belief that good technology is enough to gain funding, and ultimately commercial success. Interesting technology and research excellence provide a strong foundation; however, the aim of a successful business is not good science but achieving a tangible return to its shareholders.
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Read MoreMerger and acquisitions may be a path to creating value for life science companies, but talks can breakdown because of flaws in management thinking that skew their sense of the value of their company. Oded Ben-Joseph, managing director of Outcome Capital, applied behavioral economics to the M&A front to discuss how cognitive biases can derail M&A transactions...
Read MoreThe walking dead live, but it's value, not brains, they are eating. So-called zombie funds, life sciences venture capital funds that are fully invested and unable to raise new money, still maintain their board seats. But Outcome Capital’s Managing Directors Oded Ben-Joseph and Arnie Freeman say their divergent interest from their fellow board members often lead to disputes that can end the life of promising technologies and lead to acquisitions that leave much value on the table.
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