Although biotechnology venture capital funding was pretty substantial in the third quarter – $2 billion was invested in 121 deals, biotech investment was actually pretty flat, a new report from PwC MoneyTree shows.
Life sciences deals accounted for 18 percent of all startup investment for the quarter – the sector’s still outperformed only by software, which is to be expected. However, it’ll be interesting to watch whether the implosion of the biotech bubble will have an impact on fourth quarter venture investment in the biotech sector.
First time investments in the life sciences were down 32 percent in dollars – perhaps a harbinger of lessened sector funding in the future. However, given the robust M&A environment we’ve had in the life sciences, the sector was up 4 percent in deals.
A Deep-dive Into Specialty Pharma
A specialty drug is a class of prescription medications used to treat complex, chronic or rare medical conditions. Although this classification was originally intended to define the treatment of rare, also termed “orphan” diseases, affecting fewer than 200,000 people in the US, more recently, specialty drugs have emerged as the cornerstone of treatment for chronic and complex diseases such as cancer, autoimmune conditions, diabetes, hepatitis C, and HIV/AIDS.
The top biotech investment was $250 million in early stage investment to Stem CentRx from an undisclosed investor. This was followed by a $120 million investment CRISPR focused biotech Editas Medicine. Here’s the top 10:
