While the IPO window is slowly creaking open, biopharma start-ups and their investors are likely to get a better deal from an acquisition, as the country’s large drug companies are under increasing pressure to fill their pipelines with products.
Drug makers – many of which are about to see reams of patents expire – may be willing to pay more for a company than the public markets would deem them worth, as they are racing to keep their distribution networks stocked.
This is according to a study by Silicon Valley Bank, a major lender to and sometime-investor in privately held companies. It counts more than 50% of the country’s health-care start-ups as clients.
To read the full, original article click on this link: Why Biopharma Start-Ups Should Think M&A, Not IPO - Venture Capital Dispatch - WSJ
Author:
Timothy Hay
