Navigation Links
Venture-Backed Biotech Generates Quicker Exits but Lower Multiples than Medical Device
Date:5/19/2011

SANTA CLARA, Calif., May 19, 2011 /PRNewswire/ -- Silicon Valley Bank (SVB), financial partner to innovative technology and life science companies worldwide, released a study today that examines the merger and acquisition behavior of private, venture capital-backed biotech and medical device companies.

Based on an analysis of private merger or acquisition transactions of US venture-capital backed companies (60 biotech and 58 medical device) since 2005, SVB found several conclusions about investments in life science companies that counter conventional wisdom. SVB's study included private life science M&A activity in excess of $50 million for device companies and $100 million for biotech companies.

"We feel like we are myth busters," said Jonathan Norris, Managing Director with SVB Capital's Venture Capital Relationship Management team. "Our research shows that many of the basic assumptions upon which life science investors base their decisions do not hold true in the current market. We wanted to look at the big deals – the winners – and learn from their common characteristics. We were definitely surprised by the results and think this report will have an impact on some firms' life science investment philosophies."

Having reviewed M&A exits over a six year period, SVB's report shows biotech companies overall have quicker exits and lower multiples versus medical device companies, which tend to have longer exits and higher multiples.  The research also revealed that biotech companies that received Series A venture capital investments at the pre-clinical stage made up the majority of the biotech exits over the past six years. Additionally, the study shows a shift among biotech exits to predominantly structured deals that pay a portion up front with the remaining payment coming when the company achieves its future milestones. This is contrary to the previously established trend of paying the entire transaction amount up front, which was how nearly 80 percent of significant life science M&A transactions were handled just three years ago. The report also shows a rise in M&A activity and the dollar amount of exits among medical device companies, as well as a trend toward later stage exits.

The full report is available at http://bit.svb.com/ma-report.

SVB works with more than 50 percent of life science-focused VC firms and life science companies nationwide, specializing in companies in biotech and medical device fields. SVB's biotech clients research and develop therapeutics and diagnostics for the medical, pharmaceutical and healthcare industries. The company's medical device clients design and distribute medical equipment and surgical instruments.

Additional data on life science companies is available from SVB:


About SVB Financial Group

For nearly 30 years, SVB Financial Group (Nasdaq: SIVB) and its subsidiaries, including Silicon Valley Bank, have been dedicated to helping entrepreneurs succeed. SVB Financial Group is a financial holding company that serves companies in the technology, life science, venture capital/private equity and premium wine industries. Offering diversified financial services through Silicon Valley Bank, SVB Analytics, SVB Capital, and SVB Private Bank, SVB Financial Group provides clients with commercial, investment, international and private banking services. SVB also offers funds management, broker-dealer services and asset management, as well as the added value of its knowledge and networks worldwide. Headquartered in Santa Clara, California, SVB Financial Group operates through 26 offices in the U.S. as well as through international offices in China, India, Israel and the United Kingdom. More information can be found at www.svb.com.

Banking services are provided by Silicon Valley Bank, the California bank subsidiary and commercial banking operation of SVB Financial Group, and a member of the FDIC and the Federal Reserve. SVB Financial Group is also a member of the Federal Reserve.


'/>"/>
SOURCE SVB Financial Group
Copyright©2010 PR Newswire.
All rights reserved

Related medicine technology :

1. Generex Biotechnology Corporation CEO Presentation Now Available for On-Demand Viewing at RetailInvestorConferences.com
2. Generex Biotechnology Corporation CEO to Present Live, Online at RetailInvestorConferences.com on May 5th
3. Centocor Ortho Biotech Products, L.P. Voluntarily Withdraws NDA for Trabectedin
4. Immune Design Corp. Appoints Pharma and Biotech Executive Carlos V. Paya, MD, PhD as Chief Executive Officer
5. Bexion Pharmaceuticals Receives Outstanding Biotech Innovation Award
6. Cellceutix CEO, Leo Ehrlich, Conducts Interview with "Biotech Stock Trader"; Dr. Paul Ginsberg, (Renowned Patent Attorney) Joins Cellceutix Advisory Board
7. Pacira Pharmaceuticals to Present at BioCentury Future Leaders in the Biotech Industry Conference
8. Avanir Pharmaceuticals to Present at BioCentury Future Leaders in the Biotech Industry Conference
9. OmniComm Systems Awarded 4 Clinical Trials from U.S. Biotechnology Company
10. TCG Lifesciences Expands Pharmaceutical, Biotechnology Research Initiatives with CAS SciFinder®
11. Champions Biotechnology Exercises Option to License Proprietary Compound Based on Successful Tumorgraft™ Test Results
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:2/5/2016)... , February 5, 2016 ... market research report "Fetal (Labor & Delivery) and Neonatal ... Warmer, Incubator, Pulse Oximeter, Phototherapy/Jaundice Management Devices, CPAP, Capnograph, ... MarketsandMarkets, This report studies the global market over the ... estimated at USD 6.28 Billion in 2015 and is ...
(Date:2/5/2016)... DUBLIN , Feb. 5, 2016 /PRNewswire/ ... the addition of the "Global Obstetrics ... company profile to their offering. ... addition of the "Global Obstetrics Partnering ... company profile to their offering. --> ...
(Date:2/4/2016)... 4, 2016 Worldwide Radiology Oncology surgical ... as next generation systems provide a way to ... cancer surgery. New systems pinpoint the delivery of ... been such a problem previously, limiting the quantity ... take cancer surgery far beyond what has been ...
Breaking Medicine Technology:
(Date:2/5/2016)... ... February 05, 2016 , ... Successful recruitment and retention ... and scientific initiatives have all marked the last 12 months at Roswell Park ... of the nation’s oldest cancer center, Candace S. Johnson, PhD, outlined the many ...
(Date:2/5/2016)... (PRWEB) , ... February 05, 2016 , ... Looking for ... may be at the tips of your toes. Foot massage, whether administered by a ... pure comfort and relaxation. The American Board of Multiple Specialties in Podiatry ...
(Date:2/5/2016)... , ... February 05, 2016 , ... US Sports ... Studio in Dover, NH to direct high-performance kids yoga training. ChildLight Yoga Studio is ... just one hour from Boston. , ChildLight Yoga Studio founder Lisa Flynn expresses her ...
(Date:2/5/2016)... Dallas, Texas (PRWEB) , ... February 05, 2016 , ... ... to allow users to search for and donate to Give To Cure’s campaign ... is an app that lets users make and share payments through a smart device. ...
(Date:2/5/2016)... ... ... Dr. Justin Scott and Dr. Lydia Muccioli of Pure Dental Health ... in need. The event is scheduled to take place on February 27, 2016 from ... dental care to community members in need. Each patient will be given the opportunity ...
Breaking Medicine News(10 mins):