Mergers of small biotechs, such as the recent
union of Evotec AG and DeveloGen AG, could grow more common as
public companies look for scale and as aging venture-backed players look
for the exit, some observers say.
Publicly held Evotec, which agreed last week to buy venture-backed DeveloGen for EUR14 million ($18 million) in stock plus performance payments, bulks up with metabolic-disease technology and other assets, while DeveloGen backers, such as TVM Capital and Nomura Phase4 Ventures, are on track to profit from a bet they placed last decade.
“I do expect that there will be more of this, especially in times when it is difficult to take companies public,” said d Helmut Schühsler, DeveloGen’s chairman and managing partner of TVM Capital. “We looked around and said, ‘We don’t want to be in the company for another 10 years.’”
To read the full, original article click on this link: A More Perfect Union Of Small Biotechs - Venture Capital Dispatch - WSJ
Author: Brian Gormley
