Partnering Continues to Be Hot
Of the partnership deals that disclosed their financial terms, a whopping $9.6 billion was collectively raised in the third quarter of 2010 by U.S. biotech companies—up 8% on the $8.9 billion raised through partnership deals in Q2’10.
We are on pace to equal last year’s record-setting total for partnership dollars, an incredible amount given the uncertain economic environment and testimony that pharma’s appetite for biotech innovation continues unabated.
We did predict at the beginning of the year that the general markets would be choppy and that biotech companies would begin to perform well in the second half of the year. It appears that this scenario is beginning to play out as we enter the final quarter of the year.
Although all the biotech companies that have completed their IPOs this year have not performed well so far, we believe there will be at least another five getting out before the end of the year. Investor interest will be fueled by two high-profile genomics companies—Complete Genomics and Pacific Biosciences—and the traditional bullish trend for biotech in the fourth quarter.