Second Quarter Sees Venture Capitalists Still Snapping Up Health Care, With $2.0 Billion Invested 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
Second Quarter Sees Venture Capitalists Still Snapping Up Health Care, With $2.0 Billion Invested According To Jenks Healthcare Business Report
NEW CANAAN, CT –July 1, 2004 – During the second quarter ended June 30, 2004, according to Jenks Healthcare Business Report, venture capitalists pumped $2.0 billion into 111 investments in the health care markets, which showed sustained strength for the second quarter in a row.  Of twenty-three health care companies that secured commitments of $30.0 million or more, seven companies boasted financings of $50.0 million or more.  This quarter the three largest deals were made by American Esoteric Laboratories securing $70.0 million, Idun Pharmaceuticals ($65.6 million) and Corus Pharmaceuticals ($60.0 million) in venture financing.
The most active venture capital firms this quarter, each investing in four or more companies, numbered 18 and are listed below: 
Venture Capital Firm
Number of Health Care Investments
3i plc
8
Schroder Ventures*
7
Burrill & Co. Funds
6
OrbiMed Advisors
6
Alta Partners Funds
5
HBM Partners
5
HealthCap Funds
5
MPM Capital
5
New Enterprise Associates
5
Nomura Securities Funds
5
Novo A/S
5
TVM Techno Venture Management
5
Abingworth Management Ltd.
4
Essex Woodlands Healthcare Ventures
4
Bear Stearns Health Innoventures
4
Prospect Venture Partners
4
Versant Ventures
4
*Schroder Ventures includes (5) investments made by Schroder Ventures Life Sciences as well as (2) made by Schroder ISF Swiss Small & Mid Cap Equity Funds.
The average size of health care venture capital investments during second quarter 2004 was $18.02 million, representing a 14% decrease compared with the average investment size of $20.9 during the first quarter 2004.  Jenks reported that during the quarter ended March 30, 2004, 97 deals were made, or 13% fewer than the current quarter, totaling $2.03 billion, negligibly more than the current quarter. 

               

Pharmaceutical companies are receiving continued support from the venture capital community, while biopharmaceutical, biotechnology and medical device companies are also capturing a nice slice of health care dollars.  “Investors know that cutting-edge health care companies will provide excellent future returns,” commented Stephen M. Monroe, managing editor at Irving Levin Associates, Inc., “and we are seeing more health care companies that develop products or achieve clinical advancements through high technology, resulting in a combined appeal to investors.”

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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