2018 will see more licensing deals and M&As
With the new Trump tax regime there will be significant repatriation of cash by large pharma and biotechs to United States.
There is an estimated $250B cash parked off shore by large pharma and biotech companies.
This week several major pharmas announced billions of dollars in share buy back. We predict that there will be more licensing and M&A activity by large pharma and biotechs in 2018.
2018 will see more financing & IPOs
Several of our clients have been able to raise financing in 2018 in both private and public settings. The general market sentiment, although sometimes choppy, seems positive. We encourage our clients to raise money when they can. It’s a good time now.
Pharma will start coming back to look at large target areas and traditional blockbusters
We believe with the repatriation of cash, large pharma and biotechs appetite for larger and somewhat neglected target areas like cardiovascular, women and men’s health and CNS will grow. There will be return to larger trials to develop blockbuster drugs again.
FDA is more industry friendly than before
We find FDA to be more open and flexible than ever before. According to a PWC report, there were fewer regulations announced by FDA in 2017. It is predicted that this trend will continue. This trend will encourage biotech and pharma companies to invest more and conduct more trials. We believe there will be more drugs and devices approved this year than years before.
2018 has already been positive for Novateur clients
2018 has already been a positive year for our portfolio clients.
Congrats to our great friends and client, Innovative Targeting Solutions for completing another large pharma partnership, this time with Lilly. This is their 6th disclosed large pharma partnership.
Last week another one of our portfolio clients, AIT Therapeutics, announced closing a $9.8 M private placement.
We anticipate announcing more good news on our clients in the coming year. Stay tuned!
Ali Ardakani is the Managing Director of Novateur Ventures and Director at the LifeSciences BC Board of Directors. His passions are his family, using technology to advance life science, travel, and helping entrepreneurs be successful.