Stephen M. Monroe, Partner
Gretchen S. Swanson, Associate Editor
800-248-1668
203-846-6800
Fax: 203-846-8300
pressreleases@levinassociates.com
Medical Devices Get Most Funding in Slow Stretch for VC:
Mid-Year Results from Healthcare Corporate Finance News
Norwalk, CT - July 14, 2008 - 2008-Mid-year results reveal that the
last time the health care venture capital market experienced such a slow
six-month stretch was the second half of 2005. During the six months ended
June 30, 2008, based on deals with disclosed prices of $1 million or more,
208 health care venture capital deals were announced totaling $3.58 billion.
The second quarter ended June 30, 2008 produced 105 deals totaling $1.66
billion.
Medical device companies captured an impressive share of the dollars and
deals, as displayed in the following chart, which breaks out by sector the
total number of deals and total amount of funding, for both the quarter and
the first six months of the year.
Health Care Venture
Capital Investment Totals By Sector
Sector
Second Quarter
Ended June 30, 2008
Six Months
Ended June 30, 2008
Number of Deals
Dollar
Total, In Millions
Number of Deals
Dollar
Total, In Millions
Medical Devices
29
$430.2
63
$1,098.7
Biotechnology
26
$467.8
51
$853.4
Biopharmaceuticals
23
$332.4
40
$709.3
Pharmaceuticals
10
$213.7
26
$614.0
e-Health
9
$57.3
17
$110.2
Health Care Services & Other
8
$156.1
14
$234.4
Total
105
$1,657.5
211
$3,620.0
Biotechnology and
biopharmaceutical companies also continue to attract a major portion of the
venture capital funding devoted to health care. "The downturn in funding and
deal volume is, to some extent, a reflection of the broader markets, which
presently feature uncertainty related to economic and regulatory forces,"
remarked Gretchen S. Swanson, Editor of
Healthcare Corporate Finance News. "In addition, the current lack of
demand for venture-backed IPOs is giving investors and entrepreneurs a
reason to focus on intensifying efficiency and consider alternate strategic
options for accessing capital."
"Investment in certain sectors of the health care market is being driven by
the need for new technology that addresses the limitations of currently
available treatment," commented Stephen M. Monroe, Managing Editor.
"Companies with commercial-stage products and growth prospects are among the
most desirable investment opportunities for venture capitalists."
The most active venture capital firms in the health care sectors during the
first half of 2008 are listed below, with figures for both the quarter and
the six months ended June 30. Number of investments refers to the number of
times the firm contributed to a financing announced during the given period.
Most Active Health
Care Venture Capital Firms
The Second Quarter,
Ended June 30, 2008
Number of Investments
The Six Months
Ended June 30, 2008
Number of Investments
Domain Associates
5
Domain Associates
11
PTV Sciences
5
Versant Ventures
10
Pequot funds
4
Kleiner Perkins Caufield & Byers
8
Versant Ventures
4
Polaris Venture Partners
6
Atlas Venture
3
PTV Sciences
6
HBM funds
3
Delphi Ventures
5
NLV Partners
3
Flagship Ventures
5
Psilos Group
3
Forbion Capital Partners
5
Three Arch Partners
3
MPM Capital
5
Sofinnova funds
5
SV Life Sciences
5
Three Arch Partners
5
Healthcare Corporate Finance News
(http://www.hcfnews.com)
reports weekly on financial events in the fast-paced venture capital,
private and public equity, and merger and acquisition markets for health
care companies, and provides subscribers with access to a searchable online
database of health care venture capital deals. This monthly newsletter and
weekly email update is published by
Irving Levin Associates, Inc., a leading financial publisher and source
of market intelligence since 1948. For more information, please call
1-800-248-1668.
Since 1948, Irving
Levin Associates, Inc. has been the leading source of information
and investment research on mergers and acquisitions in the
Behavioral Health Care, Biotech, e-Health, Home Health Care,
Hospitals, Laboratories, MRI and Dialysis, Long Term Care, Managed
Care, Medical Devices, Pharmaceuticals, Physician Medical Groups,
Rehabilitation and other health care markets.
