The place to be?11 Jul 2019 18:53
Well, we get told here often... the market never lies! Usually only when sp is sinking though :)
Earlier this year, BioNTech had hired Bank of America and JP Morgan to prepare for a listing on the NASDAQ, which could have raised as much as $800 million at a valuation of around $4 billion, according to Reuters. While the company is reportedly still weighing various financing options, it isn't short on cash considering this latest transaction plus its hefty $270 million Series A last year.
As if BioNTech's Series B wasn't enough for Europe, ADC Therapeutics announced on the same day that it has secured an additional $103 million for its Series E, bringing the total amount raised for the round to a whopping $303 million. The Swiss startup develops therapies to treat hematological cancers and solid tumors and, like BioNTech, plans to use the funds for clinical trials.
Both transactions are indicative of the direction in which the European biotech industry is heading. Companies in the sector raised a record €1.3 billion in 2018, per the PitchBook Platform, having recovered from a brief lull which saw the amount of funding received dip in the two preceding years. The question is, what is fueling this uptick in activity? Increasing participation in European rounds from US investors may be one potential reason. Firms such as the Bay Area-based Redmile Group—whose portfolio includes both BioNTech and ADC—are expanding their horizons and increasingly looking outside of their borders for investment opportunities.
VC interest in the industry is also likely inspired by the big payoffs that investors can potentially expect when it comes time to exit. Deals such as Lundbeck acquiring the Netherlands-based Prexton Therapeutics' for up to €905 million and Novo Nordisk buying British business Ziylo for some $800 million have shown that the European biotech industry is a good space for those hunting for alpha.