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So, VC’s Broke… Can We Fix It?

There was a terrific interview with Alan Frazier (from Frazier Healthcare Ventures) posted on Xconomy’s site.  I encourage everyone to check it out.  

Here’s the major passage I took away (quoting Mr. Frazier):

We are investing a little more than half in biotech, and the balance in medical devices. We are, for sure, doing less startups and more later-stage companies. We do a lot of new companies, still, probably one-fourth of our companies are new companies. But a lot of them are like Calistoga where it starts out with a product pretty much ready to go, where we pull it from someone else and try it in a new indication.

So, it seems to me like there is a new equation for VC that looks a lot more like private equity.  In other words, VC’s will be looking for enterprises in the future that are closer to positive cash flow, and they will be looking for companies that will make attractive acquisition targets (as opposed to potential IPOs).

December 8, 2008 Posted by | Biotech, Deals, Med Tech, Pharma | , , , , , , , | Leave a comment

Genentech Purchase?

The proposed deal that would involve Roche’s (RHHBY) outright purchase of Genentech (DNA) may not go through.  The rumored bid of $43.7B for the remaining 44% of Genentech that Roche does not presently own would require a $45B loan, which appears to be hung up at the moment.  

The lending squeeze is apparently the culprit, as reported by Reuters.  The deal itself makes sense, but the magnitude of the required loan is just not feasible in the present economic climate.

Nonetheless, the Genentech buyout remains on the table. Read this article over at Pharmalot for further analysis on the matter.

December 5, 2008 Posted by | Biotech, Deals, Pharma | , , , | Leave a comment

All Just a Memory

Roche Pharmaceuticals (RHHBY) announced a $50M acquisition purchase of Memory Pharmaceuticals, a small-cap biotech developing CNS compounds that had an existing partnership with Roche.

Memory has developed a class of nicotinic alpha-7 agonists, which are in Phase II trials for the treatment of Alzheimer’s and schizophrenia.  The drugs treat the cognitive dysfunction of these CNS disorders through their interaction with nicotinic receptors in the brain.

November 26, 2008 Posted by | Biotech, Deals, Pharma | , , , , | Leave a comment

King and Alpharma = $1.6B Deal

After months of courting (read, hostile negotiation) King Pharmaceuticals has finally reached a deal to acquire drugmaker Alpharma for $1.6B.  An earlier bid of $1.4B was rejected in August.

Alpharma made news earlier this month when it’s painkilling compound, Embeda, was shown to have less potential for addiction than stand-alone morphine.  

Analysts commented that the deal clearly made sense, though the currently unfavorable economic climate led to a less attractive loan package for King.

November 25, 2008 Posted by | Deals, Pharma | Leave a comment