Biopharma Private Placement Insights (Q3'23)
- October 10, 2023
The latest editions of Oppenheimer’s Quarterly Private Placement Insights Report and FDA & IRA Insights Report are now available upon request.
Key Takeaways:
Private Markets Continue to Weather the Storm in YTD 2023 Despite a Slight Pullback in Activity Compared to 2022
- Based on current run rate, 2023 is on pace for ~300 deals with a total deal value of ~$17.2B (vs 327 deals and $18.4B in 2022)
- Private markets remain robust compared to pre-pandemic in terms of total deal value (2019: $13.1B, 2018: $14.0B)
- Median quarterly deal value is in-line with 2022 ($4.5B vs $4.4B) and ahead of pre-pandemic median ($4.5B vs $3.2B)
- Median quarterly deal count is slightly below 2022 (76 vs 84 deals) but is well ahead of pre-pandemic median (76 vs 66 deals)
- 60% of Series Bs are led by new investors while only 37% of Series Cs are led by new investors
- Number of extension rounds has increased from 1H 2023 to Q3 and we expect this trend to continue in Q4
- Oncology attracted the largest share of VC dollars but CNS, I&I and Autoimmunity, and CV are chipping away at Oncology
- Despite the IRA, small molecules are still a favored treatment modality among VC investors
- Preclinical-stage companies make up the majority of YTD 2023 private placement deals
- Series B valuations remained rather resilient in YTD 2023 while Series C valuations bounced back to some degree from their 2022 low
- The typical biotech funds remained active in 2023 (ARCH, RA Capital, Orbimed, Invus, Bain Capital, Surveyor, Wellington, T. Rowe, Fidelity, TCGx etc)
Number of FDA Approvals in 2023 Already Exceed 2022 Figures
- At the current run rate and with ~40 upcoming PDUFA dates lined up, we anticipate 2023 drug approval figures to exceed historical median
- Oncology, CNS and Infectious Disease indications are leading YTD 2023 drug approvals
- Biologics are on the rise as modalities beyond antibodies begin to gain prominence
The Inflation Reduction Act (IRA) Ushers in a Significant Shift in the Healthcare Industry with Broad Implications for Life Sciences Companies
- Heightened risk may press investors to be more circumspect about allocation of capital
- Companies will need to be more thoughtful about indication expansion strategies
- However, in spite of speculation about the legislation’s cataclysmic effects, its long-term industry impact remains to be seen
Please reach out to Michael Margolis, R.Ph. (MichaelA.Margolis@opco.com), Daniel Parisotto, PhD (Daniel.Parisotto@opco.com), Zelyn Kwok (Zelyn.Kwok@opco.com), or Ken Stier (Ken.Stier@opco.com) directly to request a copy.
Michael A. Margolis, R.Ph.
Title:Senior Managing Director, Co-Head of Healthcare, Head of Healthcare Life Sciences
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