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Investors lose their fear of investing in biotechnology


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Integral service around a transaction
BY : Diego GutiérrezJanuary Thu, 2016
In the last few months, three financing rounds totalling almost €70M have taken place in Spain, those of Sanifit, Minoryx and Aelix Therapeutics, and one IPO, that of Oryzon. These figures confirm the boom in the sector, not only for domestic investors but also for foreign investors. This January we have already seen investments such as Inveready's investment in Oncostellae and that of Aelix Therapeutics.

bio january

Inveready invests €1M in Oncostellae

Oncostellae, a Galician biotech company that develops cancer solutions, has received the support of Inveready. This injection will boost the development of two important research projects in prostate cancer and haematological cancers, as well as accessing the additional funding needed to reach the pre-clinical and clinical phases of drug development.

Founded in 2013 by serial entrepreneurs in the biomedical sector, Oncostellae has thus acquired greater structural and economic strength to boost its activity focused on the discovery of new cancer drugs, combining the experience of its founders in the different areas of pharmaceutical research (Pharmacology and Medicinal Chemistry).

Aelix therapeutics receives €11.5M from Ysios Capital

The Catalan Aelix TherapeuticsThe project, a public-private consortium Hivacat to develop AIDS treatments has received €11.5M in a round led by Ysios CapitalThe following have also taken part in the Caixa Capital Risk and Johnson & Johnson Innovation.

"This deal, with a size of €11.5M is a reflection that investors are taking away the fear they had of investing in biotech, the sum of the last three deals led by Ysios Capital with almost more than €70M is more than double all the biotech rounds of 2014" says Diego Gutierrez of Ysios Capital. Abra-Invest.

Situation of Biotechnology in Spain

In the last few months we have seen investments of a rather unusual volume, because they are large, in our country. Although it is true that we have not reached the figures of American companies, such as the recent purchase of Baxalta for $29,000M.

According to Josep Lluís Sanfeliu, partner at Ysios Capital, the boom in fundraising reflects "symptoms of maturity" in a sector such as biotechnology in Catalonia, which began 15 years ago with Oryzon. "Along the way, the Catalonia Bio association, BioCat, was created, and the following have taken place mergers frustrated, companies have disappeared...".

Lluís Pareras, director of HealthEquityThe fund of the Colegio de Barcelona and the financial firm Riva y García, considers the moment "exciting, especially because of the arrival of foreign capital" and highlights the trend of financing biotech companies through consortiums or syndicates of investors from the start of the company until the moment when it is allied or sold to a global pharmaceutical company, which reduces the risk.

Another trend we are seeing is that funding is coming not only from capital increases, but also from licensing agreements such as the one between Switzerland's Roche and Oryzon or Palobiofarma with the giant Novartis.

 

If you are looking for financing, please contact us. Abra-invest has a team of experts in alternative financing at your disposal. Call + 34 946424142 or fill in the contact form.

 

Other posts that may interest you

Spanish biotech companies go public

October 2015: Funding for the biotech sector: InnoUp Farma and Oryzon Genomics and Mind The Byte

Biotech operations: Minoryx, Suanfarma, Ability Pharma and Oryzon Genomics

 

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