trends in healthcare investments and exits presentation

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Trends in Healthcare Investments and Exits - 2014 July 2014

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Silicon Valley Bank’s annual healthcare M&A report, Trends in Healthcare Investments and Exits, examines the merger and acquisition and IPO activity of private, venture-backed bio-pharma and medical device companies. The study found that healthcare IPOs tripled in 2013, leading to record potential IPO/big exit returns of $12.5 billion. For a detailed analysis access the report at: http://www.svb.com/healthcare-report_2014/. **Slides updated on 8/4/2014

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Page 1: Trends in Healthcare Investments and Exits Presentation

Trends in Healthcare Investments and Exits - 2014

July 2014

Page 2: Trends in Healthcare Investments and Exits Presentation

Healthcare investments stabilize as IPOs surge

Trends in Healthcare Investments and Exitshttp://www.svb.com/healthcare-report/ 2

The story of the healthcare venture industry in 2013 can be summed up in three words: initial public offerings. In a year in which the number of venture-capital backed healthcare IPOs tripled, public market enthusiasm helped stabilize venture investment and fundraising overall. It also led to increased valuations of big exit mergers and acquisitions.

Venture investment in healthcare saw the biggest returns since SVB started tracking the data in 2005, reaching double the next best year. As we note in this report, the climate for IPOs is cooling. However, we see the current balanced financing ecosystem continuing to prime the innovation pump and encourage smooth capital flow to keep the industry humming.

Silicon Valley Bank produces this annual report to guide our clients in decision-making and to contribute valuable insight into the top trends in the healthcare venture industry. We analyzed proprietary and public data and forecasts to determine trends at both ends of the pipeline: on the capital side through venture investment into companies and venture fundraising, and on the liquidity side through big exits and IPO activity.

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Table of Contents

4. Venture fundraising and investment drive innovation

14. Healthcare big exit M&A dips as IPOs surge

18. Biopharma analysis: What’s hot, What’s not

24. Device analysis: What’s hot, What’s not

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Healthcare Accounts for 22 Percent of Total Venture Investment

Trends in Healthcare Investments and Exitshttp://www.svb.com/healthcare-report/ 4

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Gap Between Capital Raised and Invested Narrows in Recent Years Signaling Sustainability

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Corporate Venture Bolsters Early-Stage BiopharmaCompanies

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Investment in Early-Stage Device Companies Lags

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New Money in Biopharma Going to Early-Stage Companies

Trends in Healthcare Investments and Exitshttp://www.svb.com/healthcare-report/ 8

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Oncology is the Most Popular Indication

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Top New Money Corporate Investors in Biopharma

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More than Half of New Money Biopharma Investments Were in Pre-clinical or Phase I Companies

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http://www.svb.com/healthcare-report/

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New Money in Device Spread Between Early-Stage and Later-Stage Companies

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Trends in Healthcare Investments and Exitshttp://www.svb.com/healthcare-report/?

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Ophthalmology and Orthopedic are the Most Popular Indications

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Trends in Healthcare Investments and Exitshttp://www.svb.com/healthcare-report/

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The Year of the IPO: Big Exit M&A Dips as IPOs Surge

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Trends in Healthcare Investments and Exitshttp://www.svb.com/healthcare-report/

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Healthcare Sees Record Potential IPO/Big Exit Returns

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Trends in Healthcare Investments and Exitshttp://www.svb.com/healthcare-report/

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Biopharma Structured Deals Continue with Higher Upfront Payments

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Trends in Healthcare Investments and Exitshttp://www.svb.com/healthcare-report/

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Device Big Exit Activity Declines but Values Increase

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Trends in Healthcare Investments and Exitshttp://www.svb.com/healthcare-report/

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Oncology is the Darling of BioPharma Big Exits

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Trends in Healthcare Investments and Exitshttp://www.svb.com/healthcare-report/

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Half of Biopharma Big Exits Occurred at Phase III or Commercial-Stage

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Trends in Healthcare Investments and Exitshttp://www.svb.com/healthcare-report/

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Biopharma Big Exit M&A Activity Shifts to Later-Stage Companies

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Trends in Healthcare Investments and Exitshttp://www.svb.com/healthcare-report/

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Earlier-Stage Biopharma Companies are Opting for IPOs over M&A

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http://www.svb.com/healthcare-report/

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BioPharma Big Exit M&A and IPOs Focus on Oncology and Respiratory

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http://www.svb.com/healthcare-report/

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Large Corporations Increase Biopharma Acquisitions

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http://www.svb.com/healthcare-report/

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Imaging/Diagnostics and Vascular Lead Device Big Exits

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http://www.svb.com/healthcare-report/

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Device Big Exits Decline Slightly

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http://www.svb.com/healthcare-report/

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Bucking Convention, FDA Approval Not Necessary for Device Big Exit

26Trends in Healthcare Investments and Exits

http://www.svb.com/healthcare-report/

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Cardiovascular and Vascular Lead Trend of Non-FDA-Approved Device Big Exits

27Trends in Healthcare Investments and Exits

http://www.svb.com/healthcare-report/

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This material, including without limitation the statistical information herein, is provided for informational purposes only. The material is based in part upon information from third-party sources that we believe to be reliable, but which has not been independently verified by us and, as such, we do not represent that the information is accurate or complete. The information should not be viewed as tax, investment, legal or other advice nor is it to be relied on in making an investment or other decision. You should obtain relevant and specific professional advice before making any investment decision. Nothing relating to the material should be construed as a solicitation or offer, or recommendation, to acquire or dispose of any investment or to engage in any other transaction.

©2014 SVB Financial Group. All rights reserved. Silicon Valley Bank is a member of FDIC and Federal Reserve System. SVB>, SVB>Find a way, SVB Financial Group, and Silicon Valley Bank are registered trademark.

Disclaimers

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