Industry Outlook in Anticipation of the 2012 BIO International Convention

Posted under 2012 BIO International Convention, BIO CEO, BIO CEO & Investor Conference, Biotechnology Industry, Blog, Companies, Diagnostics, Events, Funding, Medical Devices, Medical Supply, Pharmaceuticals, Startups, Universities, Videos by biotechnow@bio.org (Biotechnology Industry Organization)

This month, BIO wrapped the 14^th Annual CEO & Investor Conference in New York City at the Waldorf=Astoria. Hosted by BIO, the event drew more than 1,200 industry leaders, featured 140 company presentations and a record breaking 1,300+ one-on-one meetings between 225 companies.

Taking the momentum from this meeting, we now look ahead to the 2012 BIO International Convention to be held June 18 – 21, 2012 at the Boston Convention & Exhibition Center in Boston, MA. One hot topic that seemed to dominate panel conversations, many of which drew participation from company CEO’s like Pfizer and Gilead, was the increase in Food and Drug Administration (FDA) approvals.  In 2012 alone, four new drugs have been approved by the FDA: Bydureon for type 2 diabetes; Kalydeco for cystic fibrosis; Erivedge for basal cell carcinoma and Inlyta for renal cell carcinoma, with two more approved with companion diagnostics: Xalkori for NSCLC and Zelboraf for metastatic melanoma.

The therapeutic areas that generated the biggest buzz included oncology, hepatitis C and Alzheimer’s. Those looking to learn more about the breakthroughs and advancements in these areas should visit the Convention site to explore the more than 125 thought-provoking Breakout Sessions in the thirteen relevant tracks.

Additionally, investor optimism appears restored according to the recently released BIO Industry Analysis Survey. The survey results showed that the majority of investors believe this is a good time to invest in biotech and expect that there will be more IPOs this year compared to last year.

Looking ahead to the Convention, we anticipate these trends and investor optimism will continue to play out in Boston. Through the opportunities presented at the BIO Business Forum, from partnering meetings to hosting a company presentation, to the various networking events, now is the time for organizations to capitalize on the global reach opportunities available at the Convention.

Don’t miss out on the chance to be a part of the global event for biotechnology. To learn more about the Convention and what business development opportunities await, please visit here.

Value Drivers Under the Influence – How Licensing and Key Events Affect Valuation

Posted under BIO CEO, BIO CEO & Investor Conference, biotech industry, Biotechnology Industry, Blog, Companies, Diagnostics, Events, Funding, Medical Devices, Medical Supply, Pharmaceuticals, Research and Development, Startups, Universities, Videos by biotechnow@bio.org (Biotechnology Industry Organization)

The Tuesday plenary luncheon at the 2012 BIO CEO & Investor Conference featured a panel of experts representing several perspectives on valuation.

The session opened with Ben Bonifant, Senior Vice President & Practice Area Leader at Campbell Alliance, presenting results from their Corporate Value Study, which was followed by a discussion examining the key value drivers for emerging companies. Bonifant moderated the panel discussion that featured:

• Rachel K. King, Chief Executive Officer, GlycoMimetics, Inc.
• Michael Margolis, RPh, Managing Director, Healthcare Investment Banking, ROTH Capital Partners
• Ronald C. Renaud, Jr., President & CEO, Idenix Pharmaceuticals
• Barbara Yanni, JD, LLM, CLP, Vice President and Chief Licensing Officer, Merck & Co.

The Corporate Value Study examined value changers in biopharma companies, specifically those in the $50M to $2B market cap range. Others areas examined included: valuations of business models; how do valuations vary; the worth of clinical events related to valuation and how licensing affects valuation. The study examined companies in the concept / pipeline phase, the pre-proof phase, post-proof phase and the commercialization phase. The study also took a look at the partnering model, independent model and operating model (which included co-promotion, independent and outsourced).

Of importance is the finding that none of the companies in the $1B category pursued a pure development model, all pursued a commercial model.

After the study results were discussed, the conversation quickly moved to market valuation. Barbara Yanni with Merck suggested the most important step for a potential investor is when the discussions begin. She stressed the importance of getting to know not only the company but the potential compound or drug. Michael Margolis with ROTH Capital Partners echoed that sentiment, encouraging companies to get a validating partnership early. “More and more investors are pleased when a company holds on to an asset to create value,” said Michael Margolis. Rachel King with GlycoMimetics followed up on Michael’s remarks, reminding the attendees, “Partnering strategy is critically informed by financing strategy.”

The topic quickly changed to the value and need for big pharma validation. In response, Ron Renauld with Idenix Pharmaceuticals stated, “There is a clear distinction between access to resources and validation. When data speaks for itself, big pharma validation is not necessary. Companies need to keep in mind that there’s pharma time and biotech time. Biotech time is much faster.” On the other hand, Rachel King expressed her favor for big pharma validation.

When the conversation looked to the future, Barbara Yanni predicted Hepatitis C and oncology might be the next “big thing” to catch with biopharma while Rachel King expressed interest in companion diagnostics. And Michael Margolis looked to the IPO Market. “It’s been a very challenging IPO market the last couple of years. It’s more a wait and see approach in IPO’s this year. We’ve seen a very active secondary market in IPO’s the past couple of weeks. The sector needs new public companies. As a banker, I want to see more public companies.”

Fireside Chat with Dr. Mikael Dolsten

Posted under BIO CEO, BIO CEO & Investor Conference, Blog, Companies, Diagnostics, Events, Funding, Medical Devices, Medical Supply, Pharmaceuticals, R&D, Research and Development, Startups, Universities, Videos by biotechnow@bio.org (Biotechnology Industry Organization)

Day two of the BIO CEO & Investor Conference kicked off with a Fireside Chat featuring Mikael Dolsten, MD, Phd, president, worldwide research & development from Pfizer, Inc and moderated by Mark Schoenebaum, senior biotechnology analyst with ISI Group. Speaking to a full room, Dr. Dolsten touched on Pfizer’s R&D priorities and their increased efforts to focus on investor capital return through a strong mixture of science, business and financial endeavors.

In focusing on R&D, Pfizer has chosen to move their resources to various biomedical hubs such as Cambridge, San Francisco, New York and La Jolla, recognizing that these regions present a strong environment for biomedical research and development. Through this refocus on the return of R&D and renewed effort to capitalize on partnerships, Dr. Dolsten let the audience know he is “excited about the future and structure of the company.”

When asked what Pfizer’s current scientific strengths included, Dr. Dolsten did not hesitate to mention a broad capability, including: oncology (recent FDA approvals have spearheaded this sector); vaccines; anti-infectious diseases; therapeutics; anti-nicotine (broadening their portfolio to pursue); brain diseases (mid to long term efforts) and cardiovascular disease and diabetes (an on-going effort). Dr. Dolsten reminded the crowd gathered that “science today moves across diseases.”

The session concluded with a lively Q&A discussion, largely driven by the audience asking Dr. Dolsten to comment on various Pfizer drugs in various states of approval. Upon conclusion, Dr. Dolsten wrapped with these parting words, “I think this is a great dialogue. In the end, the business of science needs to have a short and a long term plan. At Pfizer, the pipeline goal is to deliver near term and cover unmet needs long term. I remain optimistic that oncology will develop and see opportunities in science and healthcare as we learned from this past tough decade.”

Picks and Pans – The Buy-Side View for 2012

Posted under BIO CEO, biotech industry, Biotechnology Industry, Blog, CEO and Investor Conference, Companies, Diagnostics, Events, Funding, investor, investors, Medical Devices, Medical Supply, Pharmaceuticals, Startups, Universities, Videos by biotechnow@bio.org (Biotechnology Industry Organization)

What’s the forecast for biotech in 2012? Do investors think it is a good time to invest in biotechnology? Are they interested in taking on early stage companies?

At the BIO CEO & Investor Conference opening plenary, the BIO Industry Analysis team released results from their Investor Perception Study and, afterwards, a panel of portfolio managers and senior buy-side analysts fielded a range of question about the challenges and opportunities facing the industry. David Gluckman, M.D., managing director and co-head of North American Life Sciences, moderated the panel that included:

• Alexander J. Denner, PhD, (former) Managing Director, Icahn Associates
• Rajiv Kaul, Portfolio Manager, Fidelity Select Biotechnology Portfolio, Fidelity
• Greg Martinez, Portfolio Manager, Diamondback Capital Management LLC
• Deepa R. Pakianathan, PhD, General Partner, Delphi Ventures

“Our survey … suggests that investors still believe that it is a good time to invest in biotechnology,” Alan Eisenberg, executive vice president of emerging companies and business development, explained.

BIO’s survey found that over 55 percent of investors believe it is a good time to invest.

Rajiv Kaul, portfolio manager of Fidelity Select Biotechnology, agreed with the survey results and he explained why during the panel session.

“There are a couple of things … which make me very optimistic about the future of this industry,” Kaul said. “One of the things that stands out to me is … the ability to develop more targeted therapies and the cost of sequencing the human genome has gone down from $2 million to $2,000 in the last 5 years.”

The other major take-away from the Investor Perception Study, Eisenberg explained, is that investors are more focused on early stage companies and they’re willing to take greater risk on less liquid companies.

“Investors, on a relative basis this year, are more focused on early stage companies than later. And, this sentiment is also born out by the increase in percentage of investors who indicate that they are willing to invest in small market cap biotechs.”

View the whole PowerPoint presentation: