July
2006 issue
Where’s The Exit In This Market? A Look At
Health Care IPOs In The First Six Months Of 2006 Shows Who Knows
In the past six months, many health care companies have considered an
initial public offering, but few that have completed an IPO have actually
succeeded in increasing the value of their shares.
...
Quarterly And Six-Month Results For Venture
Capital
Although the total number of health care venture capital investments
announced during Q2:06 was lower than in the first quarter, more total
dollars were invested during the second.
...
Mergers and Acquisitions
For the month of June 2006, the top five deals announced in the health care
M&A market were each valued at more than a billion dollars.
...
Venture Capital Market
Venture capital investments announced during June 2006 include large rounds
for a regenerative medicine company, a spin-off company and a company
founded with another’s technology, as well as several others.
...
Notes & Briefs
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Companies Mentioned in this issue:
July 2006
A
Abraxis BioScience p5
ABS Ventures p7
Acacia Research Corporation p11
Acorda Therapeutics p2
Adherex p3
Adnexus Therapeutics p7
Advent International p7
Advisory Committee on Immunization Practices p12
Aegerion Pharmaceuticals p7
AG Edwards p3
AgeChem p9
AHPC Holdings p11
Air Ambulance Specialists p5
Alexza Pharmaceuticals p4
Alkermes p12
Alphatec p3
Alsius p3
Alta Partners p7
Ambion p7, p9
Amgen Ventures p7
Amicus Therapeutics p3
Amorcyte p8
Apax Partners p8
Arbios Systems p3
ARCH Venture Partners p7
Arryx p5
Artes Medical p3
Astion Pharma p8
Aston Gardens p5
Asuragen p7, p9
Atlas Capital p8
Atlas Copco p5
Atlas Venture p7
Auxilium p3
Aveta p3
Aviv Healthcare Properties p11
Axiom Venture Partners p7
Axonyx p4
Azimuth Opportunity p11
B
Bain Capital p8
Bain Capital LLC p7
Ballast Point Ventures p8
Banc of America p11
Band of Angels India p9
Barr Pharmaceuticals p5
Bayer p6
Beacon Holdings p5
Biacore International p6
Bio-Medical Research p5
BIOCRATES p8
BioEden p12
BioMimetic Therapeutics p4
BioNumerik p3
BioProcessors Corporation p8
BioVex Group p3
BiPar Sciences p8
Blue Medical Supply p8
BlueCross BlueShield of Tennessee Health Foundatio p12
Bridge Pharmaceuticals p8
C
Caisse de depot et placement du Quebec p9
Calypte Biomedical p11
Canaan Partners p9
Canaccord p11
Cannasat Therapeutics p11
CapMan p8
Cardica p4
Cardinal Partners p7
Carolina Vital Care p6
Cell Therapeutics p11
Celltrion p5
Cephalon p12
Chardan Capital Markets p11
Children’s Hospital Boston p8
Children’s Memorial Hospital p5
CHL Medical p8
CIBC p3
Cigna HealthCare p5
Clarient p5
Clarus Securities p6
CoGenesys p8
Colt Investors p8
CombiMatrix Group p11
CombinatoRx p3
ComVest Investment Partners p10
Corgentech p10
CoTherix p5
Cowen & Co. p3
Cowen & Company p6
Cranshire Capital p11
Credit Suisse p3
Crescent Diagnostics p8
Cyclacel p3
D
Danube Pharmaceuticals p8
Darby Group p5
Degussa AG p5
Deutsche Bank p3
Deutsche Bank Securities p4
Diagnostic Units Hungary p5
Discovery Partners International p5
Dominick & Dominick p11
Dune Medical Devices p8
E
Easton Capital p8
eHealth, Inc. p3
Eisai Co. p4
ElderCareLink p12
Encore Medical p5
Euclid- SR Partners p7
F
Ferraris p5
Ferrer Freeman & Company p1
First Albany p3
First Albany Capital p4
Flagship Ventures, p7
Focused Health Solutions p5
Food and Drug Administration p8
Formation Capital p6
Fortis Securities p11
Frazier Healthcare p8
G
Galapagos NV p5
GE Healthcare p6
GE Healthcare Financial Services p6
Genaera Corporation p11
Genelabs Technologies p11
Generex Biotechnology p11
Gentiva Health Services p6
Gilead Sciences p5
GlycoMimetics p8
Goldman, Sachs p3
Grotech Capital Group p1
Growth Capital Partners p7
H
H.I.G. Capital p8
Haemonetics p5
HarbourVest Partners p8
Harris Nesbitt p3
HealthCap p7
HealthCare Ventures p7
HealthSpring p4
HemoBioTech p3
Henry Schein p5
HLM Venture Partners p8
HMS Holdings p5
Home Diagnostics p3
Human BioSystems p3
Human Genome Sciences p8
Hunter World Markets p11
I
ICORE Healthcare p5
Ideal Image Development p8
Immune Response p3
Impulse Monitoring p8
In- dex Ventures p7
Indevus p3
INNOVIVE Pharmaceuticals p8
Integra LifeSciences p5
Integra Ventures p8
Intercell p6
Intermagnetics General p5
Investor Growth Capital p8
Inyx p3
Iomai p1
ISTA Pharmaceuticals p10
IVREA Pharmaceuticals p8
J
JER Partners p11
Johns Hopkins Health p5
Johnson & Johnson p6
Johnson & Johnson Development Corporation p8
JPMorgan p3, p11
K
Kammerer Associates p7
Kenso Kogyo p8
Kidney Dialysis Center p5
Kinetikos Medical p5
Konishi Hiroshi p8
L
L Capital Partners p7
Latterell Venture Partners p7
Lazard Capital p3
Lazarus House Hospice p6
LB I Group p10
Lexicon Genetics p11
LHC Group p5
Lifeblood Medical p8
Lifeline p5
Lighthouse Capital Partners p8
Linden, LLC p5
Longs Drug Stores p5
M
Magellan Health p5
Matritech p3
Mayne Pharma p5
MedImmune Ventures p7
Mediphase Venture Partners p8
MediQuest Therapeutics p8
Merck p12
Merrill Lynch p3
Merrimack Pharmaceuticals p1
MicroMed Cardiovascular p11
Micrus Endovascular p3
MobileAccess Networks p8
Morgan Stanley p3
MPM Capital p7
Mt. Washington Pediatric Hospital p5
MVM Life Science Partners p7
N
National Vaccine Information Center p12
Network Pharmaceuticals p5
Neurogenet-ics p4
NeuTec Pharma p5, p6
New Enterprise Associates p8, p9
NicOx p11
NightHawk Radiology p4
Nomura Code Securities Limited p4
Nomura International p4
North American Scientific p11
Northstar Neuroscience p2
Novacea p1
Novartis p6
Novartis AG p5
Novo A/S p8
NxStage Medical p3
O
Oak Investment Partners p7
Omrix Biopharmaceuticals p1
Oppenheimer & Company p10
OrbiMed Advisors p9
Orion Securities p6
OSI Systems p5
OVP Venture Partners p7
Oxford Bioscience Partners p7
P
PA Early Stage Ventures p7
Pacific Growth Equities p6
Panacea Pharmaceuticals p8
Paramount BioCapital p8
PatientKeeper p8
Pelican Life Sciences p1
Pequot Private Equity p10
Peregrine Pharmaceuticals p11
Pfizer p6
Pharma Bio-Research p5
Piper Jaffray p3
Polaris Venture Partners p7
PRA International p5
ProMetic Life Sciences p11
Providential Holdings p5
pSivida p3
PuriCore, Inc. p2
Q
Quaker BioVentures p7, p8
R
Raylo Chemicals p5
RBC p3
Red Abbey Partners p9
Replidyne p3
Restore Medical p4
Rib-X Pharmaceuticals p7, p9
Riverbank Securities p8
Rose Arbor p5
Royal Philips p5
S
S.R. One p7
Schering AG p5
SciBase AB p8
SciGen p5
Sequenom p10
Seroba BioVentures p8
SGX Pharmaceuticals p4
Shreya Biotech p5
SiCap Industries p12
Siemens Venture Capital p10
Siemens AG p6
Societe General Asset Management p11
Solidarity Fund QFL p9
Solos Endoscopy p5
Specialized Health p5
Spring Bay Ventures p8
Sprott Securities p6
Star HRG p5
StatSure Diagnostic p11
Sucampo p3
Sun Healthcare p3
Sunrise Senior Living p5
SunTrust Robinson Humphrey p6
Swiss Medica p3
Synexus Clinical p5
Systems Xcellence p4, p6
T
Takeda Pharmaceutical p5
Targacept p4
Telegraph Hill Partners p7
Telzuit Medical p3
Tenet Healthcare Corporation p12
Tengion p8
TetraLogic Pharmaceuticals p7
Texas Pacific Group Ventures p7
The Double U Master Fund p11
The Med-Design Corp. p5
The Vertical Group p7
Third Point p11
TorreyPines Therapeutics p4
Trestle Holdings p5
Trilogy Health p5
Trubion p3
Tullis-Dickerson p8
U
U.S. Department of Justice p12
UBS p3
V
Valera Pharmaceuticals p4
Vanda Pharmaceuticals p4
Venrock Associates p7
Ventas p5
Vertex Pharmaceuticals p6
Viking Systems p11
Visicu p4
Vision BioSystems p5
VLST Corporation p9
Volcano Corporation p6
W
Wachovia p3
Warburg Pincus p7
Warner Chilcott p3
Western Medical p5
William Blair & Company p6
WRF Capital p7
X
XenoPort p3
Z
Ziegler Meditech Equity p8 |
Mixed Results From Mid-Year Data - Health Care
Venture Capital Hot During Second Quarter and First Half Of 2006
Email Editor
Data for the second quarter
ended June 30, 2006 indicates that health care companies announced 97
venture capital investments totaling approximately $2 billion.
Seventy-eight percent of the deals and 83% of the dollars were reported by
companies based in the United States, with the rest headquartered in
Europe, Israel and Canada.
The two largest deals for this period, one an initial round and the other
a late round, were both announced in April. Newly established Pelican
Life Sciences secured $100 million from Grotech Capital Group
and Ferrer Freeman & Company to fund its initial and other
acquisitions in the areas of microbiology, molecular biology and
non-commodity specialty consumables. Merrimack Pharmaceuticals
raised $65 million in Series E financing to advance its proprietary
pipeline of biologic therapies targeting autoimmune diseases and cancer.
Biotechnology companies, with $762 million and 33 deals, secured the
greatest amount of funding in one sector as well as the most rounds for
the quarter. In 20 deals, biopharmaceutical companies raised $472 million.
Pharmaceuticals accounted for nearly $289 million, with 13 deals
announced. Medical device companies announced nearly as much funding, $260
million, in 17 deals. e-Health and other types of companies providing
technology solutions or other services to the health care industry account
for the remainder of the totals.
For the second quarter, the average deal size overall was $20.75 million.
In each of the top three sectors—Biotechnology, Biopharmaceuticals and
Pharmaceuticals—the average deal size was about $23 million, but in
Medical Devices the average deal size was just over $15 million. Compared
with the first quarter of 2006, during the second quarter the total number
of deals decreased by 29%, but the total amount of venture capital
invested in health care decreased by just 9%.
Looking at the individual sectors, Biotechnology has once again taken the
lead in terms of both dollars devoted and deals done, at least during the
past three months. For the second quarter of 2006, biotechs announced
about the same number of deals as in the first quarter of 2006, but more
than twice the total amount of venture capital was invested in biotechs
during the second quarter than in the first. Medical Devices garnered less
than half the amount of capital and announced about half the number of
deals, while Pharmaceuticals also saw about half as much total funding but
only a handful fewer deals, during the second quarter of 2006, compared
with the first quarter.
Combining the quarters, for the six months ended June 30, 2006, the total
number of deals announced is almost the same this year as it was last
year, with more than 230 deals in each six-month period. But the total
amount of venture capital committed to health care companies increased by
9% during the first six months of 2006, compared with the first six months
of the previous year.
Approximately $4.2 billion in venture funding has already been invested in
the health care sectors this year, so it seems safe to assume that 2006
will end with a greater total amount of capital committed to health care,
perhaps even a record amount, compared with the $7.3 billion reported at
year-end 2005. In the past two years we have seen the volume of deals and
dollars drop during the third quarter of the year, but last year that drop
got smaller in 2005 than it had been in 2004. It will be interesting to
see if the market will steam right through 2006 without faltering in the
third quarter, or if venture capital investment activity will fall off as
the year goes on.
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