Strategic Trends in Private Equity and Venture Capital Funding for Healthcare

Strategic Trends in Private Equity and Venture Capital Funding for Healthcare

Summary

GBI Research’s latest report, "Strategic Trends in Private Equity and Venture Capital Funding for Healthcare" provides a comprehensive analysis on emerging investment trends within the healthcare industry. Private equity (PE) and venture capital (VC) funds have been important participants in a wide range of industries for many decades - particularly the healthcare industry. They remain one of the few sources of funding for innovative start-up companies, which often bring disruptive technologies and life-saving medical interventions to the market.

This report provides in-depth qualitative and quantitative analyses of global and regional trends that have shaped the current healthcare PE and VC landscape, particularly from 2006 to 2015. It provides multilevel analyses that identify geographical markets and therapy areas attracting noteworthy investments. Analyses of key investment indicators in the US, including levels of fundraising activities by PE and VC companies, VC investments by industry sector, and VC-backed exits and venture financing trends - particularly for early-stage healthcare companies - are also included.

Information from our robust, industry-leading databases shows that global values of completed equity offerings in the healthcare industry are continuing their upward trend, reaching record highs in recent years. Quantitative analyses of equity offerings in the healthcare sector from 2006 to 2015 are provided alongside trends in healthcare VC-backed initial public offerings (IPOs) in the US. Top healthcare IPOs are reviewed in detail, with company profiles that include product pipelines showing therapy areas of focus, indications and product development stages.

The report also includes forecasts for the outlook for PE and VC firms investing in the healthcare sector. VC investment in early-stage healthcare companies continues to decline, and has almost completely disappeared in certain countries. The report discusses new financing models that are emerging and replacing traditional VC financing models, including case studies showcasing recent success stories.

GBI Research conducted extensive research in order to provide a comprehensive view of the strategic trends in PE and VC funding for healthcare. This new report adds to our unique portfolio of trusted industry analyses that enable our clients to assess the most promising areas in the market and exploit key business opportunities.

Scope

  • How important are PE and VC funds to the future development of the healthcare industry?
  • How does the venture-backed healthcare innovation model work?
  • What have been the global trends in healthcare PE and VC over the last decade in terms of deal activity (volume) and value?
  • Which geographical markets are attracting noteworthy healthcare investments from PE and VC firms, and which will drive investments in the future?
  • Which therapy areas attracted the most PE and VC investments by value in the last two years and what are the reasons for these trends?
  • How much capital did the top healthcare PE and VC deals raise in 2015, and which investment and healthcare companies were involved?
  • What are the new financing models being adopted by early-stage healthcare companies in the face of the declining availability of VC funds?
  • How did the 2008 global financial crisis affect VC and PE investments in healthcare, in both the short and longer term?
  • How is the healthcare industry performing compared with other industry sectors in terms of attracting VC investments in the US?
  • What are the risks if investments in the healthcare industry decrease significantly?
  • How are VC firms likely to react to increasing competition in the healthcare sector in the coming years?
  • What specific factors will continue to drive investment in the healthcare industry in the coming years?
Key Reasons to Purchase

This report will allow you to -
  • Gain insightful analyses and understanding of PE and VC dynamics in the healthcare industry. The report comprehensively describes and assesses the most important factors driving and restraining investments in this industry by assessing key investment information and parameters over the last decade.
  • Assess quantitative and qualitative trends shaping deal activity in the healthcare sector. GBI Research employed a multi-faceted research approach that involved the analysis of a variety of secondary research sources and the interrogation of proprietary databases, to provide a complete and objective view of industry and investment dynamics.
  • Gain insight on upcoming trends and factors influencing global healthcare investments.


1 Table of Contents
1 Table of Contents
1.1 List of Tables
1.2 List of Figures
2 Introduction
2.1 Overview of Private Equity and Venture Capital
2.1.1 Private Equity and Venture Capital: Similarities and Differences
2.1.2 The Importance of Adequate Fundraising for PE and VC firms
2.2 The Significance of Private Equity and Venture Capital in the Healthcare Industry
2.2.1 The Venture-Backed Healthcare Innovation Model
2.2.2 Critical Factors to Consider when Selecting a Venture Capital Firm
2.2.3 What Are the Types of Private Equity Firms Operating in the Healthcare Industry?
3 Global Trends in Private Equity and Venture Capital Investments in the Healthcare Industry
3.1 Is R&D Productivity in Healthcare Still Declining?
3.2 What is Causing the Increase in the Cost of Bringing Medical Interventions to Market?
3.3 Global Healthcare Private Equity Deal Trends: Volume and Value, 2006-2015
3.4 Regional Healthcare Private Equity Deal Trends: Volume and Value, 2006-2015
3.5 Which Therapy Areas Are Receiving Noteworthy Private Equity Investment?
3.6 Top 10 Healthcare Private Equity Deals, 2015
3.7 Top 10 Healthcare Venture Capital Deals, 2015
3.8 Are New Companies in the Healthcare Industry Living in a Post-VC Era?
3.9 What are the Risks if Investments in the Healthcare Industry Decrease Significantly?
3.10 New Funding and Investment Models Emerging in the Healthcare Industry
3.10.1 The Role of Crowdfunding in Early-Stage Healthcare in the Post-VC Era
4 US Private Equity and Venture Capital Industry Dynamics
4.1 Immediate Aftermath of the 2008 Global Financial Crisis on the Value of Capital Commitments to Private Funds in the US
4.2 Venture Capital Fundraising Trends in the US: Volume and Value of Funds, 2006-2015
4.3 US Venture Capital Investment Trends
4.4 Is Biotechnology Still Playing Second Fiddle to the Software Sector?
4.5 Trends in Seed Stage VC Financing in the US by Volume and Value, 2015
4.6 US Venture-Backed Exits, Volume and Value, 2006-2015
4.7 US Venture-Backed Healthcare Acquisitions 2006-2015
5 Equity Offerings in the Healthcare Sector, Value and Volume, 2006-2015
5.1 US Venture-Backed Initial Public Offerings in Healthcare, 2006-2015
5.2 Company Profiles and Initial Public Offer Details
5.2.1 Axovant Sciences (Stock Symbol: AXON)
5.2.2 NantKwest (Stock Symbol: NK)
5.2.3 Adaptimmune Therapeutics (Stock Symbol: ADAP)
5.2.4 Spark Therapeutics (Stock Symbol: ONCE)
5.2.5 Aimmune Therapeutics (Stock Symbol: AIMT)
5.2.6 Blueprint Medicines (Stock Symbol: BPMC)
5.2.7 RegenxBio (Stock Symbol: RGNX)
5.2.8 ProNAi Therapeutics (Stock Symbol: DNAI)
5.2.9 Seres Therapeutics (Stock Symbol: MCRB)
5.2.10 Global Blood Therapeutics (Stock Symbol: GBT)
6 Private Equity Firms, Company Drill-Downs
6.1 TPG Capital
6.1.1 Overview and Portfolio Management
6.1.2 TPG Capital, Historical Healthcare Deal Trends
6.2 The Carlyle Group
6.2.1 Overview and Portfolio Management
6.2.2 The Carlyle Group, Historical Healthcare Deal Trends
6.3 Apax Partners
6.3.1 Overview and Portfolio Management
6.3.2 Apax Partners, Historical Healthcare Deal Trends
6.4 KKR & Co
6.4.1 Overview and Portfolio Management
6.4.2 KKR & Co, Historical Healthcare Deal Trends
6.5 Warburg Pincus
6.5.1 Overview and Portfolio Management
6.5.2 Warburg Pincus, Historical Healthcare Deal Trends
6.6 Bain Capital Private Equity
6.6.1 Overview and Portfolio Management
6.6.2 Bain Private, Historical Healthcare Deal Trends
7 Venture Capital Firms, Company Drill-Downs
7.1 New Enterprise Associates
7.1.1 Overview and Portfolio Management
7.1.2 New Enterprise Associates, Historical Healthcare Deal Trends
7.2 OrbiMed Advisors
7.2.1 Overview and Portfolio Management
7.2.2 OrbiMed Advisors, Historical Healthcare Investment Trends
7.3 Kleiner Perkins Caufield & Byers
7.3.1 Overview and Portfolio Management
7.3.2 Kleiner Perkins Caufield & Byers, Historical Healthcare Investment Trends
7.4 Flagship Ventures
7.4.1 Overview and Portfolio Management
7.4.2 Flagship Ventures, Historical Healthcare Investment Trends
7.5 Third Rock Ventures
7.5.1 Overview and Portfolio Management
7.5.2 Third Rock Ventures, Historical Healthcare Investment Trends
7.6 Versant Ventures
7.6.1 Overview and Portfolio Management
7.6.2 Versant Ventures, Historical Healthcare Investment Trends
8 Future Outlook
8.1 What Factors will Drive Investment in Healthcare Industry in Coming Years?
8.2 Will New Financing Models Provide Sustainable Growth for Early-Stage Healthcare Companies?
8.3 Which Geographical Markets will Drive Investment in Healthcare in Foreseeable Future?
8.4 How will Venture Capital Firms React to Increasing Competition in Healthcare Sector?
9 Conclusions
10 Bibliography
11 Appendix
11.1 Global Healthcare Private Equity Deal Trend (Volume and Value), 2006-2015
11.2 Global Healthcare Private Equity Trends by Region, Volume, 2006-2015
11.3 Global Healthcare Private Equity Trends by Region, Value ($bn), 2006-2015
11.4 Global Healthcare Private Equity Deal Value by Therapy Area ($m), 2014 and 2015
11.5 US Capital Commitments to Private Equity Firms ($bn), 2006-2015
11.6 US Venture Capital Fundraising, Volume and Value, 2006-2015
11.7 US Venture Capital Investment Trends, Volume and Value, 2006-2015
11.8 Composition of Venture Capital Investments in the US by Sector, 2015
11.9 Value of Venture Capital Investment in the US by Company Stage of Development, 2015
11.10 Volume of Venture Capital Investment in the US by Company Stage of Development, 2015
11.11 Venture-Backed Initial Public Offerings and Merger and Acquisition Exits, Volume, 2006-2015
11.12 Venture-Backed Initial Public Offerings and Merger and Acquisition Exits, Value ($bn), 2006-2015
11.13 US Venture-Backed Acquisitions, Total Transaction Value ($bn), 2006-2015
11.14 Equity Offerings in the Healthcare Sector, Value and Volume, 2006-2015
11.15 US Venture-Backed IPOs, Healthcare and Total, 2006-2015
11.16 Contact Us
11.17 Disclaimer
1.1 List of Tables
Table 1: Main Differences and Similarities between Private Equity and Venture Capital Companies
Table 2: Types of Private Equity Firms Typically Operating in the Healthcare Industry
Table 3: Top 10 Healthcare Private Equity Deals in 2015
Table 4: Top 10 Healthcare Venture Capital Deals in 2015
Table 5: Emerging Sources of Funding for Early-Stage Healthcare Companies
Table 6: Venture Capital Investment in the US Life Sciences Industry, 2006-2015 ($m)
Table 7: Top 10 Healthcare IPOs in 2015
Table 8: Axovant Product Pipeline
Table 9: NantKwest Product Pipeline
Table 10: Adaptimmune Therapeutics Product Pipeline
Table 11: Spark Therapeutics Product Pipeline
Table 12: Aimmune Therapeutics Product Pipeline
Table 13: Blueprint Medicines Product Pipeline
Table 14: RegenxBio Product Pipeline
Table 15: ProNAi Product Pipeline
Table 16: Seres Therapeutics Product Pipeline
Table 17: Global Blood Therapeutics Product Pipeline
Table 18: TPG Capital, Healthcare Investment Portfolio, 2016
Table 19: The Carlyle Group, Healthcare Investment Portfolio, 2016
Table 20: Apax Partners, Healthcare Investment Portfolio, 2016
Table 21: KKR & Co, Healthcare Investment Portfolio, 2016
Table 22: Warburg Pincus, Healthcare Investment Portfolio, 2016
Table 23: Bain Capital Private Equity, Healthcare Investment Portfolio, 2016
Table 24: New Enterprise Associates, Healthcare Investment Portfolio, 2016
Table 25: OrbiMed Advisors, Selected Healthcare Investments
Table 26: Kleiner Perkins Caufield & Byers, Selected Healthcare Investments
Table 27: Flagship Ventures, Selected Healthcare Investments
Table 28: Third Rock Investments, Selected Healthcare Investments
Table 29: Versant Ventures, Selected Healthcare Investments
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1.2 List of Figures
Figure 1: Venture-Backed Healthcare Innovation Model 10
Figure 2: Global Healthcare Private Equity Deal Trend (Volume and Value), 2006-2015 14
Figure 3: Global Healthcare Private Equity Trends by Region, Volume, 2006-2015 15
Figure 4: Global Healthcare Private Equity Trends by Region, Value ($bn), 2006-2015 16
Figure 5: Global Healthcare Private Equity Deal Value by Therapy Area ($m), 2014 and 2015 17
Figure 6: US Capital Commitments to Private Equity Firms ($bn), 2006-2015 23
Figure 7: US Venture Capital Fundraising, Volume and Value, 2006-2015 24
Figure 8: US Venture Capital Investment Trends, Volume and Value, 2006-2015 25
Figure 9: Composition of Venture Capital Investments in the US by Sector, 2015 26
Figure 10: Value of Venture Capital Investment in the US by Company Stage of Development, 2015 27
Figure 11: Volume of Venture Capital Investment in the US by Company Stage of Development, 2015 28
Figure 12: Venture-Backed Initial Public Offerings and Merger and Acquisition Exits, Volume, 2006-2015 29
Figure 13: Venture-Backed Initial Public Offerings and Merger and Acquisition Exits, Value ($bn), 2006-2015 29
Figure 14: US Venture-Backed Healthcare Acquisitions, Total Transaction Value ($bn), 2006-2015 30
Figure 15: Equity Offerings in the Healthcare Sector, Value and Volume, 2006-2015 31
Figure 16: US Venture-Backed IPOs, Healthcare and Total, 2006-2015 32
Figure 17: Global Healthcare Private Equity Deal Trend (Volume and Value), 2006-2015 71
Figure 18: Global Healthcare Private Equity Trends by Region, Volume, 2006-2015 71
Figure 19: Global Healthcare Private Equity Trends by Region, Value ($bn), 2006-2015 72
Figure 20: Global Healthcare Private Equity Deal Value by Therapy Area ($m), 2014 and 2015 72
Figure 21: US Capital Commitments to Private Equity Firms ($bn), 2006-2015 73
Figure 22: US Venture Capital Fundraising, Volume and Value, 2006-2015 73
Figure 23: US Venture Capital Investment Trends, Volume and Value, 2006-2015 74
Figure 24: Composition of Venture Capital Investments in the US by Sector, 2015 74
Figure 25: Value of Venture Capital Investment in the US by Company Stage of Development, 2015 75
Figure 26: Volume of Venture Capital Investment in the US by Company Stage of Development, 2015 75
Figure 27: Venture-Backed Initial Public Offerings and Merger and Acquisition Exits, Volume, 2006-2015 76
Figure 28: Venture-Backed Initial Public Offerings and Merger and Acquisition Exits, Value ($bn), 2006-2015 76
Figure 29: US Venture-Backed Acquisitions, Total Transaction Value ($bn), 2006-2015 77
Figure 30: Equity Offerings in the Healthcare Sector, Value and Volume, 2006-2015 77
Figure 31: US Venture-Backed IPOs, Healthcare and Total, 2006-2015 78

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