BIO Industry Analysis: 9th Annual BIO Investor Forum

8/3/2019 BIO Industry Analysis: 9th Annual BIO Investor Forum

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BIO Industry Analysis

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Managing Director

Investor Relations & Business Development

John Craighead, Ph.D.

9th Annual BIO Investor Forum

October 5, 2010


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+1.6%

+38.8%

-60%

-40%

-20%

0%

20%

40%

Financials

Telecom

Energy

Industrials

Utilities

Materials

H

ealthCare

T

echnology

Cons.Disc.

Co

ns.Staples

NBI

BTK

%returnsinceOct9th,2007

BIOTECH SECTOR PERFORMANCE

SINCE 2007

(Source: BIO, Factset, Sept. 27th, 2010)


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-17%-19%

-31%

-46%

-15%

-36%-33%

-7%

-55%

-8%

8%

-16%

-67%

-80%

-70%

-60%

-50%

-40%

-30%

-20%

-10%

0%

10%

PATH

TSRX

GNMK

CRMD

ALIM

CDXS

T

NGN

A

VEO

A

NTH

IRWD

TLCR

O

MER

CPIX

2010

2009

IPO WINDOW YIELDS POOR RETURNS

(Source: BIO, Factset, Sept. 22nd, 2010)

Median reduction from amount filed vs raised: -28%

Median performance: -20%


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2Q 2010

294

4Q 2007

FEWER US PUBLIC BIOTECH COMPANIES

394

45%29% 25%

4Q 2008

Less than 1 Year of Cash on Hand


330

1 IPO

34 Acquisitions

16 Inactive

13 IPO

28 Acquisitions

36 Inactive


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FATE OF 131 COMPANIES

WITH 1 YEAR OF CASH LEFT JAN 2009

Survival Tactics

10 ACQUIRED

19 INACTIVE102 ACTIVE


Layoffs 41%

PIPE 40%FOPO 39%

Out-Licensed 29%

Debt Issued 11%Sold Assets 7%


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SMALL COMPANIES INCREASING CASH SPEND


$3.6

$2.0

$2.4

$1.5

$2.0

$2.5

$3.0

$3.5

$4.0

1

Q08

2

Q08

3

Q08

4

Q08

1

Q09

2

Q09

3

Q09

4

Q09

1

Q10

2

Q10

MEDIANQuarterlyCFO(-$M)


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0

10

20

30

40

50

60

J J J J J J J J J

CumulativeTotalofUSIPOs

2010 US IPO WINDOW

2009 2010

Cumberland IPO

August 2009

2011 2012 2013


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0

10

20

30

40

50

60

J J J J J J J J J

CumulativeTotalofUSIPOs

HOW IT ENDED LAST TIME:

2003

2004

2005

2006

2007


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THERAPEUTIC BIOTECH LICENSING

DEALS NOT FILLING THE GAP

(Source: BIO, Windhover, September, 2010)

595540

390 347

217*

0

100

200

300

400

500

600

700

2006 2007 2008 2009 2010*

#OFTH

ERAPEUTICDEALSPERYEAR

*YTD, Sept 15th


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46

40

55

38

21*

0

10

20

30

40

50

60

2006 2007 2008 2009 2010*

TOTAL#

OFTHERAPEUTICA

CQUISITIONS

M&A NEVER PICKED UP FOR

THERAPEUTIC BIOTECH COMPANIES

*YTD, Sept 15th(Source: BIO, Windhover, September, 2010)


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MORE LATE-STAGE M&A

(Source: BIO, Windhover, September, 2010)

15%13%

32%

16%

24%

14%

5%

19%

24%

38%

PC P1 P2 P3 M

0%

5%

10%

15%

20%

25%

30%

35%

40%

%O

FTOTALACQUISITIONS 2006-20092010


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17,143

0

2000

4000

6000

8000

10000

12000

14000

16000

1800020000

Competitive Deal Making Environment

43%

CAGR

#

of1x1Partnering

Meetingsa

tBIO


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TAKE HOME MESSAGES

25% fewer US public companies Remaining companies have more cash

2010 IPO window is uncertain

Fewer acquisitions and licensing deals

More competitive deal making landscape


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BIO Industry Analysis: 9th Annual BIO Investor Forum

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