
The number of venture-backed life science companies going public neared a peak set in 2000 during the 2nd quarter, raising $2.2 billion and doubling the volume and value of IPOs from the 1st quarter, according to the National Venture Capital Assn. and Thomson Reuters.
There were also 83 venture-backed acquisitions during the quarter, down 59% compared with Q2 2012, according to the groups’ Exit Poll report.
"We have been predicting an IPO pickup in the 2nd half of 2013 and it appears as if this momentum has begun, driven by the strong biotechnology offerings," NVCA president Mark Heesen said in prepared remarks. "We are hopeful that this positive trend will not be impacted by negative externalities in the 2nd half of the year, as has been the case over the last several years. While on the surface, the low acquisitions volume thus far in 2013 could appear problematic, our market intelligence is telling us that there is a great deal of inbound interest for venture-backed targets, suggesting that these companies are holding out for better pricing from strategic buyers. With an improving IPO market, this situation will only improve for our companies."
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There were 21 venture-backed IPOs during the 2nd quarter, according to the report, up 90% compared with Q2 2012. Thirteen of the 21 IPOs were for life science companies, including 11 biotech offerings. That’s the strongest showing since the 3rd quarter of 2000, according to the report.
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Arch Therapeutics is all in on medtech
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Private equity "overhang"
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