{"id":260582,"date":"2010-02-01T14:54:13","date_gmt":"2010-02-01T19:54:13","guid":{"rendered":"http:\/\/www.xconomy.com\/?p=61096"},"modified":"2010-02-01T14:54:13","modified_gmt":"2010-02-01T19:54:13","slug":"what-lies-ahead-for-san-diego-life-sciences","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/260582","title":{"rendered":"What Lies Ahead for San Diego Life Sciences"},"content":{"rendered":"\n
Life Sciences<\/a>, Big Pharma<\/a>, China<\/a><\/div>\n

\t\tJim Pope wrote:<\/strong><\/p>\n

We’re at the end of one of the most challenging years in recent memory for life sciences companies. However, a broad transformation is under way in the industry, and profitable new opportunities are on the near-term horizon. From my perspective, there are three major trends worth considering and focusing on as the new year unfolds.<\/p>\n

—Big Pharma Reaches Out to Biotech for Pipeline-and Deals<\/p>\n

For strategic reasons, large pharmaceuticals continue to look outside their walls for much-needed new pipelines-largely because their own are drying up and generics are making increasing inroads. I noted this trend last spring, but now it’s really playing out, with serious and significant ramifications.<\/p>\n

In an effort to expand product portfolios, bring new products to market sooner, and hasten a return on investment, big pharma is aggressively looking to collaborate with biotech on a number of levels in the hope that this will provide them access to innovative technologies. Eli Lilly, for example, recently joined with technology companies and universities and opened up a large R&D center in San Diego to identify and capture innovative biologics that have commercial promise.<\/p>\n

The major thrust, however, will likely be big pharma’s acquisition of cutting-edge biotech companies. Indeed, we believe 2010 will be a big deal year in life sciences. Unfortunately for big pharma, however, biotech valuations are rising, and strong state-of-the-art innovators won’t come cheap.<\/p>\n

When it comes to capital-raising in the biotech sector, we’re also seeing a good amount of activity in the private and public markets.<\/p>\n

But there’s also an interesting dynamic that’s worth mentioning. We’ve seen some IPO filings that are followed a short time later by a big M&A deal; we’re watching a host of M&A transactions close these days in biotech, yet not all IPOs presage a deal. A number of biotech companies appear to be filing for IPOs as a way to strategically validate a higher valuation. To put it simply: They want to be acquired, and they really don’t want to go public and have to navigate excessive red tape and regulatory hurdles from legislative measures like Sarbanes-Oxley. What’s more, the cost of raising capital to get to the next level in the valuation cycle is daunting.<\/p>\n

I’ve also noticed how many of the best biotech companies are increasing their focus on innovative technologies and raising plenty of venture capital money in the process. A good example is San Diego’s Fate Therapeutics, which has made rapid progress in advancing its pipeline of stem cell modulators and in establishing a leading industrialized platform for induced pluripotent stem cell technology. Thanks to its fairly strong track record, Fate recently completed a $30 million Series B financing led by OVP Venture Partners. Joining …Next Page »<\/a><\/span><\/p>\n

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Life Sciences, Big Pharma, China Jim Pope wrote: We’re at the end of one of the most challenging years in recent memory for life sciences companies. However, a broad transformation is under way in the industry, and profitable new opportunities are on the near-term horizon. From my perspective, there are three major trends worth considering […]<\/p>\n","protected":false},"author":5028,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-260582","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/260582","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/5028"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=260582"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/260582\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=260582"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=260582"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=260582"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}