Private Equity
Andrea Alms Video: Money In Motion 120 - Q2 2024 Biopharma M&A - VC Snapshot
August 2024 - Private Equity
Hello, my name is Andrea Alms. I'm technology investor and financial manager and this is your money in motion. Investment trends remain focused on assets centric approaches, particularly favoring advanced clinical assets over platform inventions investments. The enthusiasm for AI application and drug discovery and development persist, but investors are increasingly aware of the extended timeline for realizing AI potential in pharma.
First, the first M&A in the AI biotech space was excited to recursion Pharma for 688 million, but more. That was more of a consolidation than investing shot up goals. As for VC activity, the biopharma sector demonstrated resilience in Q2 2024, with venture funding reaching its highest since Q2 2022. Total venture capital funding surged from 9.2 billion across 215 deals, up from 7.4 billion across 196 deals in Q1 2024, suggesting adaptation to prevailing fed interest rates and renewed sector confidence.
However, some of the bumps in the numbers are driven by mega deals around AI and obesity treatment, including those of Xterra, Hercules, CM and Sarah. In the M&A and exit area activity, only biopharma companies with robust clinical data are succeeding in IPOs, leaving the majority of startups facing significant barriers to entry exit. This trend suggests that many startups, particularly those innovating in areas like gene editing, targeted cancer therapy and AI drug discovery platform may need to continue their development independently rather than seek acquisition by Big pharma.
Thank you. This is your money. Your money in motion.