Business Insights: The Funding Landscape for Small Biopharma Venturs, 2010-2015

Drug manufacturers are likely to become the primary source of funding for small-mid cap biopharma via a variety of established arrangements such a licensing/marketing agreements, co-development, joint-ventures or M&A... –Business Insights, 2010

The funding landscape for small and mid-cap biomedical companies has changed enormously over the past two years, driven by recessive public markets and withdrawal of private equity financing. The cost of raising capital has increased, and investors have become very selective about the type of transactions in which they participate. Most small biopharma ventures are struggling to raise funds and maintain enough working capital for their clinical endeavors. As with any negative development, there are greater opportunities for both buyers and sellers.

This report investigates the implications of the credit crisis over the next five years and suggests strategies that can improve the chances of raising money without compromising on the inherent strengths of a company or clinical asset. The emerging trends, priorities, and strategies of investors are described to help entrepreneurs target the right type of investor and communicate their value proposition in the best possible manner.

Click here to view a sample of this report.

This report:

• Facilitates communication between entrepreneurs and investors by appraising them of each other's priorities, areas of concern, and operational constraints
• Help entrepreneurs and investors understand in advance how such priorities, concerns, and constraints will evolve over the next five years
• Understands the role of large pharmaceutical companies in funding the clinical initiatives of small biopharma players via options-based deal structures that best resolve the conflicting incentives of the two parties
• Understands the exit strategies of healthcare investors and tailor asset valuations and negotiation points accordingly
• Uses top-line industry "average" data to shape economic assessments and communication

This report answers key questions, including:

• How has the financial crisis impacted the funding environment for small-mid sized biomedical companies? What will be the short-term and long-term effects of the crisis for biopharma companies?
• How do healthcare investors value opportunities in early stage biomedical assets? Are there any preferences by investor type in terms of methodologies, discount rates and cash flow projections?
• What are the priorities and preferences of different types of private equity funds? What issues should entrepreneurs prepare answers for to successfully negotiate the due-diligence process of private equity investors?
• How has venture financing changed in response to the credit crisis? Is there a renewed interest in some therapy areas, geographies or stages of the development lifecycle?

Click here to view a sample of this report.

The report will be delivered as a PDF via e-mail. Orders must be paid in full before shipment. All sales are final; no returns or refunds are permitted with this product. For more information, please call 877/437-4276 or e-mail account manager Maureen Croce at mcroce@hcpro.com.

• Reports

• Other Life Sciences Products