Third Quarter 2004 Healthcare

FOR IMMEDIATE RELEASE
Stephen M. Monroe, Partner
Gretchen S. Swanson, Associate Editor
800-248-1668
Fax: 203-846-8300
pressreleases@levinassociates.com
HEALTH CARE VENTURE CAPITAL DRAGS, DECLINING 34% DURING THIRD QUARTER 2004 ACCORDING TO JENKS HEALTHCARE BUSINESS REPORT
NEW CANAAN, CT – October 1, 2004 – Preliminary results for the third quarter, ended September 30, 2004, indicate a 34% decline in total venture capital committed to the health care markets, and a 15% decrease in the total number of investments, compared with the previous quarter, according to Jenks Healthcare Business Report, published by Irving Levin Associates, Inc., a research and publishing firm tracking financial activity in the health care markets. During the third quarter, a total of 94 venture capital investments amounting to $1.3 billion were recorded, bringing the totals for the year so far to $5.3 billion committed to fund 408 transactions. The four most active venture capital firms of the third quarter of 2004 each participated in five financings.
TOP 15 VENTURE INVESTORS, Q3:04
Venture Capital Firm
Number of Investments
Burrill & Co. Funds
5
Novartis Funds
5
Oxford BioScience Partners
5
Techno Venture Management
5
3i Group
4
Aravis Ventures
4
California Technology Investors
4
Sprout Group
4
Alta Partners
3
Bay City Capital
3
Frazier Healthcare
3
Global Life Science Ventures
3
H.I.G Ventures
3
MDS Capital
3
Perseus-Soros Biopharmaceutical
3
In comparison to the year-ago quarter, there has been a downswing of 6% less capital committed to 11% fewer venture financings. The pharmaceutical, biotechnology, biopharmaceutical and medical device sectors are still attracting the greatest attention from venture capitalists.

Stephen M. Monroe, Managing Editor of Irving Levin Associates, Inc., states, “For the year ended 2003, over $5.5 billion funded 386 deals. In spite of some recent uncertainty regarding IPOs, the health care venture capital market is on track to surpass the performance witnessed last year.” Mr. Monroe also commented that, “The pharmaceutical and biotechnology sectors continue to be popular among institutional investors and venture capitalists, and we expect to see more funds flow into electronic medical records technology companies, following the 2004 presidential election.”

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.
Click here to get more information or to order any of our Publications.
Back to top