IS THE SPAC BOOM HERE TO STAY?

An in-depth view on Spacs

Special purpose acquisition companies, known as Spacs or “blank check companies”, are not new but have recently rocketed in popularity as a vehicle for going public faster.

According to Spacinsider, 36 SPACs floated in 2020 with a disclosed interest in the healthcare sector. A further 11 launched in January 2021 alone, with an uptick in the amounts being raised.

Now, signs are emerging that investors are cooling on the opportunity. While there are many factors at play, this could be attributable to increasing SEC scrutiny and a mixed performance from biopharma groups that listed via a Spac.

In this article pack, produced by our team of award-winning journalists, we delve into the world of Spacs – providing insights and data-driven analysis for a deeper understanding of this financing trend and its impact on biotech and medtech.

HIGHLIGHTS

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SPECIAL REPORT
Why some Spac deals are not all they’re cracked up to be:

While blank-cheque mergers can net healthtechs a huge amount
of capital, not all investors stay the course.
How long will the good times roll for medtech?

The entry of non-traditional funders – and the availability of non-traditional exits – has altered medtech, though probably only temporarily.
Spac listings slow as the hunt for deals continues:

Spacs still have their supporters, but SEC scrutiny and mixed post-deal performance mean that the story is losing its lustre.
Cancer continues to dominate deal making:

Since 2016 drug developers have spent $23.6bn in-licensing cancer projects, almost half of the sector’s up-front bill.
EQRX aims for biopharma Spac record:

Spac redemptions are a growing concern, but the $1.8bn EQRX deal looks primed to succeed. Proving the business model will be the hard part.
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