Ann: PYC Investor Update Presentation, page-6

In explaining the impact that a tough macro-environment has had on the biotech sector, Rohan Hockings recommended viewing the video, Atlas Ventures 2022 Year in Review.

The review certainly paints an ugly picture in the rear vision mirror.

Stats from the video include:

• Longest downdraft in biotech markets in 20 years – 70 weeks long (NB: video is now 3 mths old).
• Markets have retraced valuations back to the bull markets in 2016.
• From peak to trough (early 2021 to June 2022), global R&D stage biotech valuations plunged from US$574bn to US$174bn (70%).
• Biotech IPO’s last year were down 90%.
• Average headcount reduction at biotechs has been 40%.
• M & A value for listed biotechs in 2022 was the lowest since 2016.

On the positive side, Atlas Ventures (an early-stage biotech VC company) is of the belief that the biotech downturn has now plateaued. It points to the US market starting to show signs of green shoots, and big pharma sitting on massive amounts of cash, ready to be deployed.

Rohan Hockings also made reference to a Wall Street Journal article published last week - Pfizer, Novartis, Merck Executives Say They Are Hunting for Deals Again, which provides some insight into where the biggest pharma are at and what they’re looking for.

In the Atlas Ventures video it was explained that in the last year or so, pharma had been hunting either bargain basement price biotechs, cutting-edge platforms or late-stage assets, especially market-ready assets.

Pfizer’s CFO says they are now skewing their search toward early to mid-stage assets where Pfizer believes it can “add value”.

Novartis’ CEO says his company is focused on acquisition of biotechs, also those with early to mid-stage assets and up to the value of US$5 bn, so that Novartis can participate “in the upside” of the drugs.

Novartis is looking to add heart, neurological, cancer or immune drugs, or assets that use cutting-edge technologies such as cell and gene therapies and RNA-based therapeutics.

https://lifescivc.com/2022/11/atlas-venture-2022-year-in-review/

https://www.wsj.com/articles/pfizer...-they-are-hunting-for-deals-again-11675907783