First Quarter 2004 Sees Health Care Venture Capital Investments Skyrocket According to Jenks Healthcare Business Report

FOR IMMEDIATE RELEASE
Stephen M. Monroe, Partner
Gretchen S. Swanson, Associate Editor
800-248-1668
Fax: 203-846-8300
pressreleases@levinassociates.com
First Quarter 2004 Sees Health Care Venture Capital Investments Skyrocket According to Jenks Healthcare Business Report
NEW CANAAN, CT –April 30, 2004 – During the first quarter ended March 31, 2004, total venture capital investments in the health care markets reached $2.03 billion, representing a 73.5% increase in dollar volume over the first quarter of 2003.  According to the Jenks Healthcare Business Report, which tracks private and public equity deals in health care, 97 investments totaling $2.03 billion were reported during the first quarter 2004, resulting in an average deal size of $20.9 million.  During the same period last year, the average deal size was $13.96 million, with 84 investments reported totaling just $1.17 billion; the deal volume reported has increased 15.5% since the year-ago quarter.
This quarter pharmaceutical, biotechnology and biopharmaceutical companies got the most attention from VC firms.  The six investments that received the most capital this quarter were Jazz Pharmaceuticals with $250.0 million; Attentus Healthcare with $77.0 million; AlgoRx Pharmaceuticals with $65.0 million; EXIMIAS with $63.5 million; and Peninsula Pharmaceuticals and Aspreva Pharmaceuticals, with $57.0 million each.
 “Despite a shaky IPO market, private equity investors continue to be interested in the health care sector,” commented Stephen M. Monroe, a partner at Irving Levin Associates.  “Although several IPOs in the sector have been priced below range or withdrawn from the public market during the past few months, health care companies are receiving substantial support from the private market,” Mr. Monroe continued.  Active venture capital firms this quarter included Versant Ventures, Alta Partners, InterWest Partners and Burrill & Company.  The most active venture firms this quarter, making five or more investments, are ranked in the chart below.
top 15: most active vc firms, q1:04  
Venture Capital Firm
Number of Investments
Versant Ventures
6
Alta Partners
6
InterWest Partners
6
Burrill & Company
6
MPM Capital
6
New Enterprise Associates
6
Flagship Ventures
6
HBM Bioventures
6
Polaris Ventures
6
Sofinnova Ventures
5
Domain Associates
5
Lilly Ventures/Eli Lilly
5
Venrock Associates
5
Oxford Bioscience Partners
5
Novartis Venture Fund
5
About Jenks Healthcare Business Report:
The monthly newsletter Jenks Healthcare Business Report and its companion annual report, The Health Care Venture Capital Report, are published by Irving Levin Associates, Inc., a leading health care financial publisher established in 1948.  The Firm has headquarters in New Canaan, CT and is online at www.levinassociates.com. This privately held corporation publishes research reports and newsletters, and maintains merger and acquisition databases, on the health care and senior housing markets. For more information on Jenks Healthcare Business Report, please call 1-800-248-1668.
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