486 VOLUME 24 NUMBER 5 MAY 2006 NATURE BIOTECHNOLOGY

0

100

200

300

400

500

600

700

North America Europe Asia-Pacific

1Q064Q053Q052Q051Q05Financial quarter

Am

ount

rai

sed

($ m

illio

ns)

0

7 8

0

0

207

284 42

838

101

397

53 283

168

323

Global biotech initial public offeringsThe average value of an IPO eroded to $32 million from $50 million last year at the same time.

Number of IPOsNorth America 7 1 6 4 8Europe 5 6 3 9 5Asia-Pacific 0 1 2 0 0

Source: BioCentury

Global biotech venture capital investmentMore venture capital rounds were awarded and total investment held relatively steady in Q1.

0200

400

600

800

1,000

1,2001,400

1,600

1,800

North America

Europe Asia-Pacific

1Q064Q053Q052Q051Q05

Am

ount

rai

sed

($ m

illio

ns)

Financial quarter

800390

3

31,11130815

94534726

1,17632635 3

3709

Biotech stock market performanceA bullish first quarter accounted for about half of the ~12% growth seen over the last five quarters.

Notable Q1 biotech dealsIPOs Company (lead underwriters) Amount raised ($ millions) Percent change in stock price since offer1 Date launched

Altus Pharmaceuticals (Merrill Lynch, Morgan Stanley) $1,050 44% 26-JanAlexza Pharmaceuticals (Piper Jaffray, Pacific Growth Equities) $506 22% 8-MarAGI Therapeutics (Davy Stockbrokers) $504 N/A 27-FebAcorda Therapeutics (Banc of America) $365 –15% 10-FebIomai (UBS Investment Bank, SG Cowen) $350 –17% 1-Feb

Venture capital Company (Lead investors) Amount invested ($ millions) Round number Date closedCadence Pharmaceuticals (Frazier Healthcare Ventures) $79 1 22-FebMicrobia (Sigma Capital) $75 5 27-FebNovacea (Apax Partners) $60 3 4-JanNabriva Therapeutics Forschungs (Nomura Phase4 Ventures) $51 1 31-JanNereus Pharmaceuticals (HBM BioVentures) $43 4 6-Mar

Merger and acquisitions Target Acquirer Value ($ millions)2 Date announcedANDRx Watson Pharmaceuticals $1,900 13-MarPliva Actavis $1,600 17-MarAmerican Medical Instruments Angiotech Pharmaceuticals $785 1-FebBetapharm Dr. Reddy’s Laboratories $572 16-FebThe Healthfield Group Gentiva Health Services $454 5-Jan

Licensing /collaboration Researcher Investor Value ($ millions) Deal descriptionTrubion Pharmaceuticals Wyeth $800 Collaboration, discovery and developmentNastech Pharmaceutical Procter & Gamble $587 Collaboration, discovery and developmentIdenix Pharmaceuticals Novartis $525 LicenseSGX Pharmaceuticals Novartis $515 Collaboration, discovery and developmentZentiva Sanofi-Aventis $515 25% equity investmentInfinity Pharmaceuticals Novartis $400 Collaboration, discovery and developmentNuvelo Bayer $385 Collaboration, discovery and developmentNicOx Pfizer $385 Collaboration, discovery and developmentNicOx Merck $351 Collaboration, discovery and development

1As of April 3. 2As of deal announcement data. Source: BioCentury, ReCap.com

Source: BioCentury

80

90

100

110

120

130

140

150

Swiss Exchange Nasdaq Biotech Nasdaq Dow Jones BioCentury Biotech 100

Inde

x

1/7/

05

2/7/

05

3/7/

05

4/7/

05

5/7/

05

6/7/

05

7/7/

05

8/7/

05

9/7/

05

10/7

/05

11/7

/05

12/7

/05

1/7/

06

2/7/

06

3/7/

06

Source: Multex, BioCentury

Global biotech industry financingA $5 billion debt offering by Amgen represented almost one-third of total biotech financing in the first quarter.

0 5,000 10,000 15,000 20,000

IPOsVenture capitalPIPEsFollow-on financingDebt and other financingPartnering

1Q06

4Q05

3Q05

2Q05

1Q05

Amount raised ($ millions)

Fin

anci

al q

uart

er

2,151, 1,109, 1,451, 525, 1,192, 604

4,093, 1,482, 498, 545, 1,434, 343

3,279, 2,570, 1,373, 825, 1,318, 333

7,745, 2,804, 1,432, 591, 1,536, 551

6,436, 5,263, 1,759, 1,451, 1,301, 424

Source: BioCentury, Burrill & Company

DATA PAGE

Investors bullish in Q1Stacy Lawrence

Despite a bullish stock market in Q1, private investors and com-panies were increasingly skittish. Although the number of initial public offerings (IPOs) and venture capital (VC) deals remained steady, their average values declined. A typical IPO garnered about one-third less in Q1 than one year earlier; VC rounds also fell in

value ($20 million versus $17 million in Q1 2005). Another reflec-tion of investor caution was a big increase in funds raised through debt and private investment in public equity (PIPE) deals. Overall, total financing grew by about 13% quarter-over-quarter and 137% year-over-year.

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