Silicon Valley Bank’s annual healthcare M&A report, Trends in Healthcare Investments and Exits, examines the merger and acquisition and IPO activity of private, venture-backed bio-pharma and medical device companies.
The study found that healthcare IPOs tripled in 2013, leading to record potential IPO/big exit returns of $12.5 billion.
For a detailed analysis access the report at: http://www.svb.com/healthcare-report_2014/.
**Slides updated on 8/4/2014
2. Healthcare investments stabilize as IPOs surge
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The story of the healthcare venture industry in 2013 can be summed up in three
words: initial public offerings. In a year in which the number of venture-capital
backed healthcare IPOs tripled, public market enthusiasm helped stabilize
venture investment and fundraising overall. It also led to increased valuations of
big exit mergers and acquisitions.
Venture investment in healthcare saw the biggest returns since SVB started
tracking the data in 2005, reaching double the next best year. As we note in this
report, the climate for IPOs is cooling. However, we see the current balanced
financing ecosystem continuing to prime the innovation pump and encourage
smooth capital flow to keep the industry humming.
Silicon Valley Bank produces this annual report to guide our clients in decision-
making and to contribute valuable insight into the top trends in the healthcare
venture industry. We analyzed proprietary and public data and forecasts to
determine trends at both ends of the pipeline: on the capital side through venture
investment into companies and venture fundraising, and on the liquidity side
through big exits and IPO activity.
3. Table of Contents
4. Venture fundraising and investment drive innovation
14. Healthcare big exit M&A dips as IPOs surge
18. Biopharma analysis: What’s hot, What’s not
24. Device analysis: What’s hot, What’s not
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4. Healthcare Accounts for 22 Percent of Total Venture
Investment
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5. Gap Between Capital Raised and Invested Narrows in
Recent Years Signaling Sustainability
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6. Corporate Venture Bolsters Early-Stage Biopharma
Companies
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7. Investment in Early-Stage Device Companies Lags
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8. New Money in Biopharma Going to Early-Stage Companies
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9. Oncology is the Most Popular Indication
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10. Top New Money Corporate Investors in Biopharma
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11. More than Half of New Money Biopharma Investments Were
in Pre-clinical or Phase I Companies
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12. New Money in Device Spread Between Early-Stage and
Later-Stage Companies
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13. Ophthalmology and Orthopedic are the Most Popular
Indications
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14. The Year of the IPO: Big Exit M&A Dips as IPOs Surge
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15. Healthcare Sees Record Potential IPO/Big Exit Returns
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16. Biopharma Structured Deals Continue with Higher Upfront
Payments
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17. Device Big Exit Activity Declines but Values Increase
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18. Oncology is the Darling of BioPharma Big Exits
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19. Half of Biopharma Big Exits Occurred at Phase III or
Commercial-Stage
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20. Biopharma Big Exit M&A Activity Shifts to Later-Stage
Companies
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21. Earlier-Stage Biopharma Companies are Opting for IPOs
over M&A
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22. BioPharma Big Exit M&A and IPOs Focus on Oncology and
Respiratory
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23. Large Corporations Increase Biopharma Acquisitions
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24. Imaging/Diagnostics and Vascular Lead Device Big Exits
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25. Device Big Exits Decline Slightly
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26. Bucking Convention, FDA Approval Not Necessary for Device
Big Exit
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27. Cardiovascular and Vascular Lead Trend of Non-FDA-
Approved Device Big Exits
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