Pharma is warming up to innovation, personal medicine — particularly for oncology — is hot and molecular diagnostics have moved from the bench to the bedside. As bullish as investors seem about biotech investments, how long is that likely to last? Those were some of the talking points at the JP Morgan Healthcare conference where metaphors likening the investment atmosphere to the weather abounded.
IPO window is still wide open but for how much longer? The strong appetite for biotech initial public offerings, at least 34 in 2013 as of the start of December, is helping to feed the bullishness for investments in continuing to roll out. Atlas Venture Partner Bruce Booth points out a fun fact in one blog entry about the conference: 12 biotech companies started a roadshow this week — a record number of simultaneous biotech road shows. As he points out, “If the companies have done solid crossover rounds already, or have really compelling assets, the offerings and their pricings should be fine. But if not, good luck to them as it’s likely to be tough.”
Crowdfunding in biotech is rising: Crowdfunding has been moving beyond the familiar territory of consumer goods to healthcare. Even so, it has primarily focused on medtech and health IT tools for an audience of medical staff or consumers. But Poliwogg’s initiative with the Epilepsy Foundation and Alpha 1 Foundation indicate that 2014 could be the year it expands in biotech in a significant way, particularly the crowdfudning model. A couple of biotech companies are also using MedStartr’s platform such as Atlantic Bio Sci.
When Investment Rhymes with Canada
Canada has a proud history of achievement in the areas of science and technology, and the field of biomanufacturing and life sciences is no exception.
Corporate venture capital funds investing in innovation: A PriceWaterhouse Cooper’s report on healthcare investment trends pointed out that biotech is in the top five for corporate venture capital investing. Edward Yu, a principal at PriceWaterhouseCoopers Health Industries practice said companies realize that if they don’t invest in innovation, they’ll pay for it long-term. Corporate venture capital is about connecting the dots of innovation. It’s in a company’s best interest to ensure the entrepreneurs they invest in have a high likelihood of success. Companies are attracted to the lore of the Silicon Valley and take the attitude, ‘Why can’t I replicate the Silicon Valley inside my company?’
Janssen Labs seems to fit that description. It’s helping Johnson & Johnson Development Corp by tapping companies with innovative technology and providing them with the resources they need to be successful. It’s a moderate gamble for a big pharma company but given the analysis of FDA drugs approved last year, big pharma’s future depends on reaching beyond their walls and cultivating entrepreneurs. Janssen Labs Head Melinda Richter said its three innovation centers have helped change the culture of Johnson & Johnson and made the company bolder.
[Photo credit: Freedigitalphotos.net]
