Biopharma Stages A Strong Recovery Over The First Half Even As M&A Deals Disappoint, While Unprecedented Amounts Of Money Flow In Medtech But Not Towards Smaller Innovators

LONDON, BOSTON, TOKYO (August 3, 2017) — Today EP Vantage, the independent news and analysis arm of Evaluate Ltd, releases its 2017 half-year reports on pharma & biotech and medtech sector performance. Report authors Elizabeth Cairns and Jon Gardner provide their expert viewpoints, powered by Evaluate data and consensus forecasts.

Key findings include:

Pharma & Biotech

  • Nasdaq Biotechnology Index hit an 18-month high, and healthcare indices in general outperformed wider markets over the first half
  • Initial public offerings of development-stage companies exceeded $1bn in the second quarter, making it the strongest quarter in nearly two years
  • The first half of 2017 generated the lowest number of M&A deals and total transaction value since 2013
  • Venture capital investment looks to be on track to at least match 2016’s total
  • 2017 new drug approvals should recover to close to the five-year average, putting to rest any fears of a regulatory or innovation slowdown
  • Approaching regulatory decisions on the first CAR-T therapies will help set the tone for the remainder of the year

Medtech

  • Total venture funding raised in the first quarter was over $2.5bn, more than twice the quarterly average over the past seven years, but the second quarter saw the fewest deals since the second quarter of 2006
  • The first half of this year saw the three biggest ever VC rounds in medtech, Grail, Verily and Guardant Health raising more than $2bn between them
  • The mega-merger is back in vogue with nine out of the top 10 deals in the first half worth $1bn or more, versus only five in the first half of 2016
  • Venture capital investment looks to be on track to at least match 2016’s total
  • 2017 could see nearly $98bn spent on medtech M&A – double last year’s total – but with only around 150 transactions versus 234 in 2016
  • 2017 on course for the highest-ever number of approvals: 52 PMAs and HDEs combined and 34 de novo clearances

To read the complimentary reports, please visit www.evaluate.com/MedtechHalfYear2017 and www.evaluate.com/PharmaBiotechHalfYear2017.

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