The health of emerging pharmaceutical companies can be assessed, in part, by financing and partnership activity with larger companies, Richard Harrison, Chief Scientific Officer at Clarivate Analytics, told a DCAT Week \u201917 audience in a session titled \u201cEmerging Pharma: Market Overview, Project Management and CMC Readiness.\u201d<\/p>\n
The program focused on the specialized issues of emerging pharmaceutical and biopharmaceutical companies, an important customer base for suppliers and partnering source for larger companies.<\/p>\n
Harrison briefed the audience on key developments in and expectations for the market. He addressed venture capital funding and initial public offerings (IPOs) in the sector and provided insight on large pharma companies\u2019 interest in early-stage versus late-stage drug assets.<\/p>\n
In 2016, the biotechnology sector raised $38 billion through public and private financing, Harrison told the group; 56% came from public offerings, 24% from private funding and 20% was financing of other public biotech firms and investments from corporate partners. Harrison said that the total amount of money raised is down about $30 billion from 2015. The number of IPOs on U.S. exchanges in 2016 totaled 30 companies, down from the 54 companies that went public in 2015. However, 2016 proved a good year for private companies with private financing deals in the U.S., Canada, the E.U. and Asia\/Australia amounting to $8.62 billion in total.<\/p>\n
Harrison said hope for the biopharma sector in 2017 lies in advancing drugs through development and increasing value along the way. Meanwhile, he said, some analysts say it may be easier to raise funding through public markets.<\/p>\n
Over the past five years the nature of M&A activity has evolved. In 2012, almost half of M&A (49%) involved an approved product. Jump to 2016 and that percentage is down to 19%, Harrison said. Most M&A in 2016 involved products in early\/preclinical stages (24%) or clinical stages (58%). Harrison noted that in 2016 many large pharma companies were looking at one or two therapeutic areas, mainly oncology and cardiovascular.<\/p>\n
Deals in the overall life sciences industry totaled $273 billion in value comprised from 4,003 deals made in 2016. The types of deals were broken down by mergers and acquisitions (58%), licensing and joint venture (29%), asset purchases (8%) and other (5%). Harrison highlighted the fact that there were no mega mergers in 2016 and suggested the tax inversions stopped by the change in the U.S. Treasury Department rules, uncertainty with the U.S. election and the U.K.\u2019s \u201cBrexit\u201d vote may have been factors. However, now that the results from the campaigns are in, Harrison said we may see some big deals on the horizon in 2017.<\/p>\n
The Drug, Chemical & Associated Technologies Association (DCAT) organized DCAT Week \u201917 in March, the gathering\u2019s 127th<\/sup> edition. DCAT is a not-for-profit, member- supported, global business development association. Its membership integrates both innovator and generic drug manufacturers and suppliers of ingredients, development and manufacturing services, and related technologies.<\/p>\n <\/p>\n Download Richard Harrison\u2019s DCAT Week \u201917 slide presentation, \u201cEmerging Pharma: Market Overview, Project Management and CMC Readiness.\u201d<\/a> <\/strong><\/p>\n <\/p>\n For insight into the global generics and API manufacturing market, read a new whitepaper examining challenges, industry responses, and future outlook:\u00a0\u00a0 \u201cThe Changing Dynamics of Global API Manufacturing.\u201d<\/a><\/strong><\/p>\n \u00a0<\/strong><\/p>\n Attending DCAT Sharp Sourcing June 27 in New Brunswick? \u00a0Don\u2019t miss \u201cAPI Market Outlook (Supply & Demand)\u201d with Kate Kuhrt, Head of Go To Market \u2013 Life Sciences at Clarivate Analytics, examining the latest global market data and trends on demand supply for active pharmaceutical ingredients (small molecules and biologics) for innovator and generic drugs for developed and emerging markets. Learn more.<\/a><\/strong><\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" The health of emerging pharmaceutical companies can be assessed, in part, by financing and partnership activity with larger companies, Richard Harrison, Chief Scientific Officer at Clarivate Analytics, told a DCAT Week \u201917 audience in a session titled \u201cEmerging Pharma: Market Overview, Project Management and CMC Readiness.\u201d<\/p>\n","protected":false},"author":2,"featured_media":13572,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_links_to":"","_links_to_type":0,"footnotes":""},"categories":[21],"tags":[40,44,28,64,66,68,70],"class_list":["post-6870","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-life-sciences-healthcare","tag-biopharma","tag-cortellis","tag-generics","tag-ipos","tag-ma","tag-partnerships","tag-venture-capital"],"acf":[],"lang":"en","translations":{"en":6870},"publishpress_future_workflow_manual_trigger":{"enabledWorkflows":[]},"pll_sync_post":[],"_links":{"self":[{"href":"https:\/\/clarivate.com\/life-sciences-healthcare\/wp-json\/wp\/v2\/posts\/6870","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/clarivate.com\/life-sciences-healthcare\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/clarivate.com\/life-sciences-healthcare\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/clarivate.com\/life-sciences-healthcare\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/clarivate.com\/life-sciences-healthcare\/wp-json\/wp\/v2\/comments?post=6870"}],"version-history":[{"count":0,"href":"https:\/\/clarivate.com\/life-sciences-healthcare\/wp-json\/wp\/v2\/posts\/6870\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/clarivate.com\/life-sciences-healthcare\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/clarivate.com\/life-sciences-healthcare\/wp-json\/wp\/v2\/media?parent=6870"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/clarivate.com\/life-sciences-healthcare\/wp-json\/wp\/v2\/categories?post=6870"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/clarivate.com\/life-sciences-healthcare\/wp-json\/wp\/v2\/tags?post=6870"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}