Yellen comments on biotech sector

1. Yellen Comments on Biotechnology
Sector At Odds With Venture
Capital Trends
New York, July 23, 2014 — Despite the stir caused
by recent comments by Federal Reserve Chair Janet
Yellen regarding the state of the biotechnology
sector, Kalorama Information sees potential for
growth based on the substantial investments in
venture capital that came into the biotech market
in 2012-2013. Kalorama’s Biotech Funding Deals
and Partnerships notes that biotech investment
has increased significantly in the past few years
and that 2013 saw a noticeable spike. In the last
few years, this has resulted in a complex series of
deals and transactions involving major players in
the industry, as investors invest in proven
companies on new science and technology initiatives that have potential in the
clinic.
Fed Chair Janet Yellen commented regarding the biotechnology sector in
testimony to Congress on July 15th, stating that "valuation metrics in some
sectors do appear substantially stretched—particularly those for smaller firms
in the social media and biotechnology industries, despite a notable downturn in
equity prices for such firms early in the year." This comment has been much
discussed in the media, and some media outlets and business pundits have
questioned whether the comments have affected biotechnology stocks.

2. The healthcare market research firm notes that the statement did not take into
account information from venture capital markets, which have for the most part
backed biotechnology.
“While Federal Reserve Chair Yellen’s comments were directed at equity
markets, venture capital spends are another way to judge a sector’s merit,” said
Bruce Carlson, Publisher of Kalorama Information. “One out of every eight
dollars invested in companies is invested in biotech. For key players in the
biotechnology sector, the landscape for investing remains fertile.”
Kalorama’s Biotech Funding Deals and Partnerships notes significant
transactions from 2011 to 2014 involving major companies such as Alkermes,
Boston Biomedical, Dicerna Pharmaceuticals, immatics biotechnologies,
Micromet, Reata Pharmaceuticals, UCB and Xoma. This report reviews the nature
and direction of funding trends, and outlines the important role that
investments play in moving technology into the marketplace.
Kalorama Information’s report, Biotech Funding Deals and Partnerships:
Analysis of Recent Venture Capital and Corporate Capital Funding and Other
Transactions, provides analysis of both venture and corporate capital funding
efforts. In addition, the report looks at other collaborative approaches,
including licensing, joint ventures and partnerships aimed at moving product
candidates into the marketplace as approved therapies, especially if they
address unmet medical needs. The report can be found at KI:
http://www.kaloramainformation.com/Biotech-Funding-Deals-8169354/

3. About Kalorama Information -- Kalorama Information, a division of
MarketResearch.com, supplies the latest in independent medical market
research in diagnostics, biotech, pharmaceuticals, medical devices and
healthcare; as well as a full range of custom research services. We routinely
assist the media with healthcare topics. Follow us on Twitter, LinkedIn and our
blog at www.kaloramainformation.com.