Despite some recent market volatility, the industry is well positioned for long-term growth and success.
That was the underlying theme of the opening Plenary Luncheon and Fireside Chat at the 2018 BIO Investor Forum (BIF).
The fireside chat featured an informative and wide-ranging conversation with industry investing veteran Ed Hurwitz, managing director at MPM Capital. The discussion was moderated by Susanne Mulligan, managing director, life sciences banking, at BMO Capital Markets.
BIO President & CEO Jim Greenwood kicked off the lunch by discussing how the fundamentals of the industry are strong and how our understanding of human biology continues to advance at a breathtaking pace. Greenwood highlighted how this increased understanding of the science gives investors more confidence to provide key financing for companies throughout their growth cycle.
Hurwitz echoed this point during the fireside chat, noting that our improved understanding of science has changed the trends in investing.
Because of advances in science, more companies today can attract the capital they need to motor through tough times and bad markets.
In his remarks, Greenwood noted how this trend is playing out by highlighting some key data points:
- Initial public offerings in 2018 are much stronger than in years’ past: 39 so far this year – compared to 24 for all of last year and just 22 in 2016.
- U.S. companies have pulled in $3.8 billion in IPOs and are on track for the second highest amount raised in a decade.
- More preclinical-stage companies are going public than any other year in a decade.
- There have been more than 800 secondary offerings since 2013. These offering have raised more than $100 billion for biotech companies.
- 2018 could be a record year for VC investment in this sector, beating last year’s record of $7.6 billion for U.S. companies.
- Globally, data from Evaluate Pharma shows a record $13.2 billion into biopharma in 2018. That’s ahead of last year’s record $12.2 billion.
- We can expect more than 40 novel drug approvals this year.
“As an industry, we’ve gone from talking about our potential to realizing it,” said Greenwood.
MPM Capital has played an important role in making this success possible. As Mulligan noted in her comments, MPM Capital has about $1.5 billion under management; launched 22 start-ups since 2010; 35 of their portfolio companies have gone public since 2005; and there have been 46 drug approvals from companies that the firm has invested in. The firm continues to be a leader in the oncology space and has one of the most experienced leadership teams in the business.
During the fire side chat, Hurwitz talked about the MPM entrepreneurial engine, its deep bench of expertise and the role it plays in helping turn great ideas into well-capitalized, well-run companies.
Access business panels, therapeutic sessions, and fireside chats from the 2018 Investor Forum by purchasing a Virtual Attendee Package here.