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US Life Sciences Transactions

Interesting 2nd Quarter In Life Sciences 

Below is a chart summarizing the volume of US Life Sciences transactions complied from Pitchbook for the 2nd quarter of calendar year 2020.  Each quarter, the Mintz Life Sciences team will update this page to include a new quarter of transaction data and analysis.  As the data set builds, we will provide insights gleaned from analyzing the data and our experience in the industry.

The second quarter started off with most transaction categories nearly flat from the end of the prior quarter. That is not surprising, given the newness of COVID-19 at the time.  May appears to have benefitted from some pent up demand with an increase in public capital market transactions. Venture Capital saw a significant uptick as well in May.  It’s not entirely surprising to see a decline into June as we begin to enter the summer months and uncertainties related to COVID-19 persist. Our team is as curious as you to see how this summer shapes up in comparison to the spring – and also past summers.  This far into the pandemic the life sciences sector has outperformed other segments of the market, but it will be interesting to see if the volume of COVID-19 related clinical trials begins to threaten or delay non-COVID-19 clinical trials, whether the persistence of the pandemic may negatively affect the launch of new products unrelated to COVID-19 and whether telemedicine will turn out to be a viable long-term solution to the inability of patients to see their doctors on a routine basis, as well as how these factors might affect collaborations, capital raising and M&A in the life sciences sector for the foreseeable future.

A particularly positive data point from Dealogic, published by the Wall Street Journal on August 10, is that total IPO deal value for the biotech sector has achieved a record-breaking total - reaching higher already this year than achieved in the previous record year of 2018.  While valuations are volatile, US biotech companies have raised roughly $9.4 billion in 2020 (through July) as compared to the full year record set in 2018 f $65 billion.  

LifeSciencesDeals-April-through-June-2020-BY TYPE

 

Pitchbook defines Life Sciences as including "companies involved in dealing with living organisms and life processes, including biology, pharmaceuticals, biomedical technology, and nutraceuticals."