Whilst CPH isn't pure Biotech it operates in the same field of health etc. and is involved in medicinal research etc. so I feel some of you will be interested in this (pinched from another poster in another thread).
AtlasVentures 2022 Year in Review.
The review paints an ugly picture in the rearvision mirror.
Stats from the video include:
·Longest downdraft in biotech marketsin 20 years – 70 weeks long (NB: video is now 3 mths old).
·Markets have retraced valuations backto bull markets in 2016.
·From peak to trough (early 2021 toJune 2022), global R&D stage biotech valuations plunged from US$574bn toUS$174bn (70%).
·Biotech IPO’s were down 90% lastyear.
·Average headcount reduction atbiotechs has been 40%.
·M & A value for listed biotechsin 2022 was the lowest since 2016.
On the positive side, AtlasVentures (an early-stage biotech VC company) is of the belief that the downturnhas now plateaued. It points to the US market starting to show signs of greenshoots, and big pharma sitting on massive amounts of cash, ready to bedeployed.
Rohan Hockings also made reference to a WallStreet Journal article published last week - Pfizer, Novartis,Merck Executives Say They Are Hunting for Deals Again, which providessome insight into where the biggest pharma are at and what they’re looking for.
In the Atlas Ventures video it was explainedthat in the last year or so, pharma had been hunting either bargain basementpriced biotechs, cutting-edge platforms or late-stage assets, especiallymarket-ready assets.
Pfizer’s CFO says they are now skewing theirsearch toward early to mid-stage assets where Pfizer believes it can “addvalue”.
Novartis’ CEO says his company is focused onacquisition of biotechs, also those with early to mid-stage assets and up tothe value of US$5 bn, so that Novartis can participate “in the upside” of thedrugs.
Novartis is looking to add heart, neurological,cancer or immune drugs, or assets that use cutting-edge technologies such ascell and gene therapies and RNA-based therapeutics.
I understand if some of you might be scratching your head and asking for relevance...Simple - big pharma are losing big time with the emergence of medicinal cannabis to treat PTSD and Anxiety and Pain replacing many of their big selling opioid-based medicines. Big Pharma are cashed up and will be maintaining a close eye on this industry over the next 12-18 months. This is the sweet spot right here right now. CPH is a strong buy here imo. DYOR and have fun out there people.
