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Advanced Therapies Investment Round-Up: Biotech on Cloud 9

Wesley Johnson
23 November 2021
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In this new monthly column, Wesley Johnson explores a few of the industry’s top deals that were closed in the month of October.

The biotech industry has surfaced from the global pandemic with commendable strength and resilience.

The pandemic has propelled biotech companies as one of the most attractive tech sector’s right now, as investor appetite drives a record number of IPO’s across the sector. Moreover, acquisitions and partnerships are now on the rise [1].

According to McKinsey, between January 2020 and January 2021, the average share price for European and US biotech’s increased at more than twice the rate of the S&P500, and Chinese biotech’s performed more than six times better, with their average share prices more than doubling in a year [2].

The increased interest from investors seems to have been fuelled by the biotech industry’s efficient response in tackling our global health crises and the development of multiple and successful vaccines in record time [3]. Furthermore, their ability to develop tech innovations such as the use of mRNA technology has caught the eye of many active firms across the global capital markets [4].

Below, I have highlighted a few of the industry’s top deals that were closed in the month of October.

Europe

  • MPM Capital Oncology has raised an impressive $850 million for its second Oncology Impact Fund (OIF). This funding round makes it the world’s largest biotech impact investment fund and highlights the buoyancy and performance of the SDG investment market. OIF 2 will create and invest in companies that develop innovative treatments for cancer and other areas of highest unmet medical need. | Read more >>
  • Abalos Therapeutics has completed its Series A funding round bringing the total raised in this round to $50 million. The finance raised will be used to enable the company to advance its first product candidate into a Phase 1-2 trial in multiple solid tumors including the expansion cohorts to demonstrate early signs of clinical efficacy. | Read more >>

North America

  • BioRestorative Therapies has raised $23 million in public offering units. Roth Capital Partners acted as sole manager for the offering and as a result of the offering the company’s common stock will now become listed on the Nasdaq Capital Market. | Read more >>
  • Mink Theapeutics has raised $40 million in IPO of Shares. Evercore ISI and William Blair acted as join book-running managers for the offering and the company intends to use the proceeds to fund their planned early development of monotherapy and combination study of AGENT-797 with PD-1/CTLA-4 checkpoint inhibitors. | Read more >>

Source: Global Data on 19 November 2021

  • BirchBioMed has raised $6 million in venture financing. To raise this finance, the company issued equity securities, option, warrant or other right to acquire another security, security to be acquired upon exercise of option, warrant or other right to acquire another security to five investors.

Source: Global Data on 19 November 2021

  • Elicio Therapeutics has raised $2 million in venture financing of its planned $15 million venture financing round. Elicio Therapeutics are seeking public investment to fund its various Phase 1-2 trials. The firm’s lead candidate. ELI-002 is being tested to treat KRAS mutation cancers.

Source: Global Data on 19 November 2021

Asia-Pacific

  • Huaxia Yingtai (Beijing) has raised $31 million in series B financing. The company intends to use the funds for the advancement of clinical trials of the dual-target hematoma STAR-T project, the development of solid tumor STAR-T pipelines, clinical research and development and industrialization construction. The Investors were China Growth Capital, Vertex Ventures China and 8 others.

Source: Global Data on 19 November 2021

Conclusion

In the past, investors with specialised knowledge within the biotech space would dominate the market. This was as a result of the risk involved in identifying the right companies at the right time. However, this has changed as a result of the pandemic.

According to a recent analysis from McKinsey which interviewed 20-C-level executives from small and mid-size biotechs and VC firms, it identified that more investors are now prepared to invest earlier in the life cycle of biotech, which as a result, is driving new competition into the market [5].

Research suggests that one of the reasons for this is that during the pandemic, investors started to identify that so many biotechs started pivoting ongoing trials to test whether existing products in development have an application to COVID-19. Any good news from these companies could potentially result in major increases in share prices [6].

With the increased flow of capital into the health sector over the past 12 months, it only seems fair to say that reward is now starting to outweigh the risk.

About ATIN

Success is not just what you know, but who you know. The Advanced Therapies Investment Network (ATIN) which is powered by Phacilitate, helps advance the next pillar of medicine by hosting the world’s leading marketplace that connects executives and investors. ATIN helps support your deal flow, by facilitating curated meeting introductions mixed with high-quality algorithmic matchmaking for biotechnology, specialty pharma and medtech companies working in advanced therapies. For more information about how to join this specialist group, please contact me directly via: wesley.johnson@phacilitate.com 

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References

[1] Financing breaks all records in 2020 | Nature Biotechnology
[2] Biotech is riding a wave of growth in funding. What’s next? | McKinsey
[3] Make way for the golden age of transport infrastructure | McKinsey
[4] mRNA vaccines — a new era in vaccinology | Nature Reviews Drug Discovery
[5] Biotech is riding a wave of growth in funding. What’s next? | McKinsey
[6] Biotech sector remains resilient amid pandemic | Pinsent Masons