M&A Shines Bright in Life Science

According to a recent report by PWC, in 2022 we will likely see M&A investments in pharmaceutical & life sciences reach $350–400 billion, driven by all subsectors. The continuation of the $5–15 billion biotech deals, combined with medium-sized pharma ($50 billion) and medical device ($25 billion) deals is likely expected to drive significant investment dollars in M&A.

So what’s driving the high growth in M&A?

Research suggests that the presence and expansion of certain key drivers are behind the continued growth and deal activity across the Pharmaceutical and Life Science (PLS) Sector. A few of these key drivers include the likes of; the need for optimising portfolios, committing capital to achieve growth agendas, finding ways to unlock value in a high-multiple deal environment, and being able to safely navigate through regulatory uncertainty.

Further to the above, I caught up with up with Anthony Davies from Dark Horse Consulting earlier this month to hear his thoughts on a few of those key drivers and we discussed a common trajectory for M&A offerings in the cell and gene space.

Anthony mentioned:

“A recurring ask we receive is the landscape scan as a way to identify attractive investment opportunities, whether those be therapeutics or tools/tech/services. So many entities are interested in entering cell and gene at the moment, but these are not simple calculations by any stretch. The fields are changing so rapidly that up-the-minute intelligence, combined with the scientific understating of industry trends, regulatory requirements, manufacturing needs, etc., is the only way to get a head of the curve. And if there’s one thing our investment clients need to do across the board, it’s to think further ahead than they already are. Often we need to reject an ask because its aiming in the direction of an opportunity that we happen to know is already in the final stages of consideration and negotiation. Early scans identify prospects further down the line, allowing for financing and diligence next steps as well as the occasional IP review.”

We look forward to hearing more of Anthony’s insights at our Advanced Therapies Week in Miami this week, where he will sit down with the likes of Craig Shepherd – Senior Managing Director at  Life Sciences at Blackstone to further dissect some of the industry’s latest trends, challenges and solutions within the investment landscape.

Returning to the round-up, below I have highlighted a few of the industry’s top transactions concluded for the month of December.

Europe 

• SOTIO Biotech Raises $317 Million in Private Financing. Sotio Biotech, a Czech Republic immuno-oncology company, owned by the PPF group has raised a massive $316 million in one of the largest funding rounds ever for a European biotech. Sotio intends to use the funds to advanced SOT101 through two multi-indication Phase II clinical trials. | Read more >>

• AviadoBio Raises $80 Million in Series A Financing. AviadoBio Ltd, a gene therapy company focused on developing and delivering transformative medicines for people living with neurodegenerative disorders, has raised USD80 million in Series A financing led by New Enterprise Associates (NEA). The company intends to use the funds to advance its lead program in frontotemporal dementia into the clinical, progress its preclinical assets, including for amyotrophic lateral sclerosis (ALS), whilst continuing to expand its industry-leading team. | Read more >>

North America 

• Longeveron Raises $20.5 Million in Private Placement of Shares and Warrants. Longeveron Inc, a clinical stage biotechnology company developing cellular therapies for chronic aging-related and life-threatening conditions, has announced that it entered into a securities purchase agreement with certain institutional investors to purchase approximately $20.5 million worth of its common stock and warrants in a private placement. Longeveron intends to use the net proceeds from the private placement to support the ongoing clinical development of Lomecel-B, the company’s lead investigational product, which is currently being evaluated as a potential therapeutic for Hypoplastic Left Heart Syndrome, Aging Frailty Alzheimer’s Disease and other diseases. | Read more >>

• EOM Pharma Merges with ImmunoCellular Therapeutics. EOM Pharmaceuticals, Inc – a privately held, clinical-stage pharmaceutical company – and ImmunoCellular Therapeutics Ltd, a clinical-stage company that is developing immune-based therapies for the treatment of brain and other cancers, have announced that the companies have entered into and closed on a merger agreement pursuant to which the shareholders of EOM are now the majority shareholders of the combined company. | Read more >>

• Creative Medical Technology Prices IPO of Shares for $16 Million. Creative Medical Technology Holdings, Inc. a commercial-stage biotechnology company focused on regenerative approach to immunotherapy, urology, neurology and orthopaedics, today announced the pricing of the underwritten public offering of 3,875,000 shares of common stock and accompanying warrants to purchase up to 3,875,000 shares of common stock at a combined public offering price of $4.13. As a result of the offering, the company’s common stock will become listed on the Nasdaq Capital Market. | Read more >>

• Bellicum Raises $35 Million in Private Placement of Shares. Bellicum Pharmaceuticals Inc, a clinical-stage biopharmaceutical company that focuses on discovering and developing novel cellular immunotherapies, has completed the private placement of 20,559,210 shares of common stock and accompanying warrants to purchase up to 2,055,920 shares of common stock, at and exercise prices of $1.69 per share of common stock, for gross proceeds of $35 million. | Read more >>

• Adicet Bio to Raise funds through Public Offering of Securities. Adicet Bio, Inc, a biotechnology company developing allogeneic gamma-delta T cell therapies for addressing the unmet medical need of solid tumours and haematological cancers, has announced that it has commenced an underwritten public offering of 6,250,000 shares of its common stock at a public offering price of $14.00 per share. The gross proceeds from the offering, before deducting underwriting discounts and commissions and offering expenses, are expected to be $87.5 million, excluding any exercise of the underwriter’s option to purchase additional shares. | Read more >>

• Abeona Therapeutics Prices Public Offering of Shares and Warrants for $17.5 Million. Abeona Therapeutics Inc, a clinical-stage biopharmaceutical company developing gene and cell therapies for serious diseases, has priced its underwritten public offering of 44,700,00 shares of common stock and warrants to purchase 44,700,00 share of its common stock at a combined offering prices to the public of $0.39 per one share of common stock and one warrant to purchase one share of common stock. The aggregate gross proceeds from the offering are expected to be approximately $17.5 million, before deducting the underwriting discounts and commissions and other offering expenses payable by Abeona. | Read more >>

• Oncernal Therapeutics to Raise up to $50 Million in Public Offering of Shares. Oncernal Therapeutics, Inc, a clinical-stage biotechnology company focused on the development of novel oncology therapies, has announced an underwritten public offering of shares to raise up to $50 million. The company intends to use the proceeds for general corporate purposes, including expenses related to the clinical and preclinical development of zilovertamab and ONCT-216, preclinical and, if INDs are approved, clinical development of ONCT-808 and ONCT-534 and for working capital. | Read more >>

• Senti Biosciences to Merge with Dynamics Special Purpose. Senti Biosciences, Inc, a gene circuit company, has entered into a definitive business combination agreement with Dynamics Special Purpose Corp, a special purpose acquisition company, to create a public company focused on gene circuit- engineered cell and gene therapies. The transaction values the combined company at a pro forma equity value of $601 million, assuming a $10 per share price and no shareholder redemptions. | Read more >>

• Ambys Medicines Raises $47 Million in Extended Series A Financing. Ambys Medicines, a company that develops cell-based therapies for severe liver diseases, has raised $47 million in extended Series A financing. The financing was led by Third Rock Ventures with participation from Takeda, Schroders Capital, Laurion Capital, Smilegate Investment and Alexandria Venture Investments. The company intends to use the funds for expansion of its proprietary liver cell therapy production capabilities and the advancement of its lead program, AMI-918, through pre-IND activities. | Read more >>

Middle East & Asia

• VBL Therapeutics Raises $16.8 Million in Venture Financing. VBL Therapeutics, a clinical stage biotechnology company developing first-in-class for difficult-to-treat malignant solid tumours and immune or inflammatory indications, has raised €15 million in venture financing. The company intends to use the funds to support clinical development, CMC, and pre-commercialisation activities. The company has also received €2.5 million grant from European Innovation Council (EIC) Accelerator. | Read more >>

China

• Shenzhen Wingor Biotechnology (Yinguan Biotechnology) Raises Funds through Series A Financing. Shenzhen Wingor Biotechnology Co Ltd (Yinguan Bio), a biomedical company in the field of cell therapy, has raised funds through series A financing, jointly led by the SME Development Fund and Hanshang Great Health Industry. The company intends to use the proceeds to accelerate the advancement of the preclinical research and clinical trial registration application (IND) of Yinguan Biologics stem cell drugs. | Source: Global Data on 24^th January 2022

• Innoforce Pharma raises $157 Million in Series A Financing. Innoforce Pharmaceuticals, a CDMO, announced on Tuesday that it has closed a Series A round of financing, raising $157 million. Innoforce, which was co-founded in 2018, supports the development and commercialisation of innovative medicines in China, the US and Europe. Proceeds will advance INF’s GMP biomanufacturing capabilities, including establishing its cell and gene therapies capacity and additional investment in the development of an RNA manufacturing platform. | Read more >>

Conclusion

Compared with many other industries, the healthcare sector has been in the past relatively slow-moving, driven by multiple factors including the likes of; uncertainty around regulatory regimes and requirements, access to real-time market intelligence, and the understanding of industry trends and manufacturing needs. However, according to a recent survey by Deloitte, companies are starting to look beyond familiar territory to achieve tomorrow’s growth.

Phacilitate ATIN looks forward to collaborating with their investment members at this years Advanced Therapies Week from the 25^th–28^th January in Miami, to continue to support their ongoing deal flow objectives and help them identify new business opportunities across the global Advanced Therapies industry.

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