Category Archives: Inside BIO Industry Analysis

1Q 2010 – All Time High for the BTK

The first quarter of 2010 saw the Amex Biotech Index (BTK) hit another all time high, thanks largely to Intermune’s (ITMN) jump of 240% and OSI’s (OSIP) gain of 92%. (Intermune received a positive recommendation from an FDA panel for pirfenidone, and OSI’s stock moved on the $3.5B hostile bid from Astellas.) The Nasdaq Biotech Index (NBI) climbed to its highest in over eight years. Both of these biotech indices are up since the financial Read More >

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FOPO – A Late Stage Financing Tool

The follow-on public offering (FOPO) market has been strong for biotech since early last year, but has it been open to companies at all stages of drug R&D? It turns out that FOPOs have been utilized primarily by late-stage biotechs.  I recently took a look at FOPOs listed in the Windhover Strategic Transactions database that took place from January 2009 to March 2010. Of the 46 drug development companies that raised over $25M in a Read More >

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Is P/E Compression Making Biotech a Bargin?

For the first time in biotech history, price to earnings multiples (P/E based on next year’s projected EPS) for large cap biotechs dropped below the average P/E for the S&P 500 index. Is this a sign that biotech is cheap relative to the market or is it because earnings growth is shrinking, commanding a lower P/E ratio? If we look at end of quarter P/E ratios (price /next 12 months of earnings) for the largest biotech Read More >

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Posts from the 9th Annual BIO Winhover & Pharmaceutical Strategic Outlook Conference (Feb 2010)

Did you miss a panel at the BIO Windhover/PSO Conference in New York? Here are links to my notes for five of the panels: NOTES FROM THE EXTERNALIZATION PANEL NOTES FROM THE OPTION DEALS PANEL NOTES FROM THE EARLY-STAGE DEALS PANEL NOTES FROM THE LATE-STAGE DEALS PANEL NOTES FROM THE REIMBURSEMENT PANEL

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VC Fundraising Back to 2005 Levels

Is Venture Capital “holding up” for US biotech? Although there is a silver lining that venture capital fundraising for biotechnology outpaced other sectors in the US in 2009 and a number of new start-ups have been launched (see NVCA press release here), the multiyear trend is down. But by how much? I took a look at absolute numbers compiled by different sources to calculate where we are. The average is used because some sources include Read More >

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