Biotech financing

Biotech financing: US and Europe
That burst of early-stage financing meant the proportion of
venture funds going to early-stage biotech companies was
greater than in any year this millennium, topping 30% for
the first time since 2001 (up from 25% in 2014; the 15-year
average is 24%). This was in large part due to the massive first
financing rounds raised by the likes of Denali Therapeutics
(US$217 million in May 2015), Boston Pharmaceuticals
(US$600 million in November 2015) and the cancer vaccine
start-up Gritstone Oncology (US$102 million in October 2015).
In Europe alone, the early-stage share of venture financing
was an incredible 41%, a proportion driven by Immunocore’s
US$313 million Series A and a US$119 million Series A from
Mereo BioPharma Group, which launched in July with three
clinical-stage development programs licensed from Novartis.
More than 30% of all US and European venture investment came via seed and first rounds
Seed and first round
All other rounds
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Source: EY, Capital IQ and VentureSource.
US and European biotechnology IPO pricing by year
Below range
Within range
Above range
Capital raised (US$b)
80
8
70
7
Number of IPOs
60
50
40
30
20
6
5
4
3
2
Capital raised (US$b)
10
1
0
2011 2012 2013 2014 2015
0
Source: EY, Capital IQ and VentureSource.
10 Beyond borders 2016 — Biotech financing