Investors Coming Forth in Biotech Landscape After Cold Spell

Welcome to the May edition of i-Pharm Insights, where we discuss the latest trends and activities in the life sciences sector.

Investors Returning to Biotech

After a challenging period marked by uncertainty and reduced funding, venture capital investment in biotech is experiencing a remarkable resurgence. This year, $3.2 billion has been invested in biotech companies, a dramatic increase from the mere $3 million invested in the same period last year. This significant uptick reflects renewed confidence in the biotech sector's potential for innovation and growth. The surge in investments is not only a testament to the sector's resilience but also an indicator of the critical role biotech plays in addressing global health challenges.

What’s Driving the Change?

Improvement in Stock Market Performance:

• The stock market's recovery has reinstalled confidence among investors, making them more willing to fund biotech ventures. This improvement signals stability and potential growth, encouraging investments.

Mergers and Acquisitions (M&A) Activity:

• The biotech sector is seeing significant M&A activity, exemplified by Amgen’s $28 billion acquisition of Horizon Therapeutics. Such large-scale transactions highlight the sector's robust potential and dynamic nature, driving investor interest and capital influx.

Strong IPO Market:

• Initial Public Offerings (IPOs) in the biotech sector are performing well. CG Oncology's IPO, which exceeded expectations, is a testament to the strong market interest and investor confidence in biotech innovations and solutions.

The Rise of the Stock Market?

Since 2022, the volatility and downturn in public markets led to a decrease in biotech IPOs. However, as the economy and stock markets stabilise and the IPO market reopens, investor confidence is improving. This positive outlook suggests an increase in venture funding for the biotech industry, supporting private biotech companies in advancing their drug research and development efforts.

M&A Sees an Influx?

Amgen has completed its $27.8 billion acquisition of Horizon Therapeutics after overcoming a challenge from the FTC. This acquisition grants Amgen access to Horizon’s portfolio of drugs, which had sales of $1.8 billion in the first half of 2023. This deal highlights a significant move in the biotech industry, indicating potential for future mergers and acquisitions as regulatory scrutiny evolves and supporting the industry financially.?

Oncology brings in $380M

CG Oncology completed the first biotech IPO of 2023, raising $380 million, surpassing initial estimates. The company's shares were priced at $19 each, higher than the anticipated $16-$18 range. This IPO success is seen as a sign of a reopening IPO market. CG Oncology, focused on bladder cancer treatments, could raise an additional $57 million if underwriters exercise their option to purchase more shares. This IPO is one of the largest recent biotech IPOs, following Acelyrin's $540 million IPO in 2022.

Despite the fresh memories of layoffs and economic challenges, there are clear signs of cautious optimism, demonstrating that last year's downturn may have been a temporary blip in the biotech space.

How i-Pharm Can Help

With this surge in funding, the demand for key senior hires in biotech is more critical than ever. At i-Pharm, we specialise in connecting you with top-tier talent to drive your projects forward. Our deep expertise in life sciences recruitment ensures that you find the best candidates tailored to your specific needs, helping you capitalise on this exciting growth phase in the biotech industry.

Whether you are scaling up or looking to enhance your leadership team, i-Pharm is here to support your journey towards success.

Our Commitment

We are committed to supporting the biotech sector by:

• Leveraging our extensive network to source highly skilled candidates
• Providing insights into industry trends to help you stay ahead
• Offering tailored recruitment solutions to meet your specific needs

Life at i-Pharm

Big Billers Trip: Dubai

This month was our Big Biller's Trip where some of our top performers went on a trip to Dubai.

The team members from our offices across the globe came together for an incredible trip, which included camel rides, quad biking through the desert, and plenty of time to indulge in incredible food and drink.

London's Spring Social: Clays and Karaoke

This month, our London team celebrated at their spring social in style. They started off with a round of virtual clay target shooting before moving on to showcase their singing talents at karaoke.

EDI - Potluck

We held EDI Potlucks in our offices across the world to celebrate Equity, Diversity and Inclusion within our business and industry.?We’ve had an incredible journey with our Global Equality, Diversity and Inclusion Champions at i-Pharm over that last year

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If you'd like to learn more about life at i-Pharm, check out our latest opportunities here .

Thank you for joining us for May's edition of i-Pharm Insights. Don't forget to subscribe to stay up-to-date with the latest trends, opportunities, and insights in the life sciences sector.

If you have anything you'd like to see or contribute to June's edition, send us an email to [email protected]