BioMarin Refreshes Its Pipeline With ZyStor Acquisition
This article was originally published in The Pink Sheet Daily
In a deal weighted heavily toward downstream payments, the orphan drug maker gains a compound that could challenge Genzyme in Pompe disease.
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Good News For A Change At Genzyme: Consent Decree Finalized Without Surprises, Lumizyme Approved By FDA Ahead Of Schedule
Belying the adage that no news is good news, embattled Genzyme enjoyed two measures of positive news in the past week. But activist investors continue circling the company, which is not yet out of the deep water
Despite a few bright spots, the fundraising environment remains difficult for many venture investors. Biotechs that went public during the 2005-2007 window have largely underperformed, despite hitting the stock exchanges with what plenty of CEOs and VCs felt were artificially low prices negotiated by an oligarchy of biotech IPO buyers. Moreover, pharmaceutical companies have been buying fewer, not more, biotechs - even as more companies are seemingly created with acquisition, not IPO, in mind. Meanwhile, the M&A deals that do occur are increasingly risk-sharing affairs that resemble alliances, replete with earn-out payments triggered by development, regulatory, or commercial milestones. In short: good venture exits have been extremely hard to come by. And data from Elsevier's Strategic Transactions analyzed by START-UP suggest that although these risk-sharing deal structures may be a by-product of a miserable economy, they are likely to stick around regardless of any economic turnaround.
Not every acquisition of a venture-backed biotech in 2009 was a structured deal that included earn-outs based on clinical or regulatory milestones. But it sure was close. Thirteen private biotechnology companies were acquired in 2009 and of those deals only a few did not include contingent value rights (CVRs).