BIO: A close-up on the biotech industry
Just got back from the 2010 BIO International Convention in Chicago – the Superbowl of the biotech industry.
Last year’s BIO was a decidedly gloomy affair as investment dropped to levels not seen since the mid-90s, but this year there was a cautiously optimistic tone as the industry adapts to the “new normal” of capital constraints.
Here are some take home messages from the event.
What's happening in financing for bio companies?
BioFinance – the annual Ontario biotech jamboree – was held at the Toronto Marriot Hotel from April 6-8, 2010.
The mood was noticeably brighter than last year on account of signs of activity in the M&A field (e.g. Fate Therapeutics had just announced it’s acquisition of Ottawa stem cell startup Verio Therapeutics) and some early stage venture activity (no kidding!).
Here’s a sampling from the sessions, expert panels and company presentations for you to enjoy…
Solving the mysteries of pet food production
The pet industry is big business. There are over eight million pet cats and dogs in Canada and more than 160 million pets in the US. Last year, Americans spent over US$45 billion on their pets, including US$18 billion on pet food.
What happens when pet food harms more than it helps?
Some pet foods have been found to be tainted with melamine (commonly used in clear resins and durable plastics) as well other toxins and allergens—some of which may be created during pet food processing.
How can you keep Spot safe?
Enter Larial Proteomics.
Not quite a knockout for biotech
Hotly touted Massachusetts biotech Ironwood Pharmaceuticals succeeded in going public on the NASDAQ this week but failed to rake in the amount of cash that industry pundits had predicted. The IPO raised $188 million at a price of $11.25 per share. Not too shabby, but considerably less than the $267 million analysts had envisioned.
Ironwood, which has a Phase III drug (Linoclotide) for irritable bowel syndrome — a large and unsatisfied market — appears to have fallen victim to the weakness in the financial markets triggered by concerns about potential European debt defaults and American unemployment data.
Money for the biotech industry?
BIOTECanada has made further announcements on the financial condition of the Canadian biotechnology industry.
A recent survey indicated that 70% of Canadian biotech companies have at least a year of cash on hand versus a mere 30% in July 2009. According to the January 25 news release this turnaround was achieved by companies restructuring their operations (read “downsizing”) and increased access to foreign investment (read “fire sale”). With the important proviso that I haven’t seen the underlying survey data, I can’t help but wonder if the upswing in apparent financial viability was driven by closures of less financially fit companies than any genuine positive momentum.
