Menlo Park, California -- As of Q2 2015, Pharmaceutical startup industry fundings by venture capital firms increased to $900 million, representing a 35% increase in amounts funded quarter over quarter, but a 31% decrease in the number of companies funded, 34 versus the previous quarter.
Selected Transaction Activity
Boston, Massachusetts-based Intarcia Therapeutics raised $225 million in
venture debt capital from undisclosed investors. The company said it
plans to use the funds to accelerate the initiation of additional
head-to-head comparative and switch studies of its ITCA 650 candidate
versus leading oral and injectable type II diabetes therapies. Intarcia
is backed by a large syndicate of institutional venture capital, private
equity and late stage investors.
Quebec-based Clementia Pharmaceuticals
raised $60 million in equity capital from a large syndicate of venture
capital and corporate investors led by New Enterprise Associates. The
company said that the financing will allow it to continue focusing on
its priority of developing palovarotene as a potential treatment option
for patients with Fibrodysplasia Ossificans Progressiva (FOP).
Commentary
After the doldrums of funding activity during 2011 and 2012, venture capital financing activity for the Pharmaceutical sector is at a seven-year high. This is no doubt due to the positive M&A and IPO environment for life science companies.
Big Pharma is in need of rejuvenating depleted product pipelines and life science startup companies are taking advantage of genomic and other information technologies to help speed products to market faster.
As this trend continues, venture capital and private equity interest in promising Pharmaceutical companies will continue to grow.