Companies that help fund biopharma startups worry about what’s to come under the Trump administration, but their concerns are not as deep as in other business sectors.
Bloomberg Technologies reported last week that venture capital firms that invest in tech companies indicated a 37 percent drop in the last three months in startup dealmaking was due at least in part to uncertainty about priorities in the new Trump administration.
I cover legal decisions, legislation and regulations that affect biopharmaceutical companies. I decided to see if the biopharma industry has the same feeling about startup funding as the people over in tech. This is important because large pharmaceutical companies (Big Pharmas) have looked to biotechnology startups for innovations in drug development. Biopharma startups usually don’t have the product yet and so lack income. But they do have ideas that, with funding, can lead to patents and new drugs.
Venture capital executives whose firms fund biopharma startups told me that changes in administration always create uncertainty. “There may be a slowdown in new biopharma investment as people are trying to figure out what President Trump wants to prioritize,” Caleb Winder, managing director of Excel Ventures Management, told me. “But deals are being made, and things feel better than they did a year ago.”
An analysis of Bloomberg Finance data shows VC funds raised $2.4 billion for biopharmas over the last six months compared to $1 billion in the prior six months. There was a big jump in VC fundraising in October 2016, a strong December and slight declines from those levels in January and February.
David Berry, a general partner at Flagship Pioneering, told me, “As far as day-to-day is concerned, nothing has happened yet to negatively impact biopharma investment decisions. For therapeutics, there's no sign that it's going to get any harder for investments. In fact, conversations are going on that could take us into interesting places.”
Quarterly reports on VC investment will be out next month, and there will likely be up and downs throughout the year, which Bloomberg BNA will cover. The feeling about biopharma VC investment right now, however, is good.
You can read my full article here.
Stay on top of new developments in health law and regulation with a free trial to the Health Law Resource Center.
Learn more about Bloomberg Law and sign up for a free trial.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)