Retail Investors – Alternative Pathways to IPO

  • San Antonio, Texas- based GenSpera (GNSV) is a biotechnology company engaged in the development of targeted prodrug therapies for the treatment of human solid tumor cancers.
  • The company’s drug development portfolio is based on a potential first in class, plant derived cytotoxin named thapsigargin, which is isolated from the seeds of a plant that grows naturally in countries around the Mediterranean.
  • The Company’s lead drug candidate, G-202, is a prodrug formulation of a thapsigargin based cytotoxin that is bioactivated by the enzyme Prostate Specific Membrane Antigen (PSMA).

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The IPO Window is Open!

IPOs

“The number of IPOs at least doubled in each sector and rebounded big exit M&A soared 50%. This environment led to record high potential distributions in 2014, topping $20 billion”

VC-Backed IPOs and Big Market M&A (2005-2014)
VC-Backed IPOs and Big Market M&A (2005-2014)

“This environment led to record high potential distributions in 2014, topping $20 billion. This is the largest return on investment measured since SVB began tracking the information a decade ago”

Potential Distributions From VC-Backed IPOs and Big Exit M&A
Potential Distributions From VC-Backed IPOs and Big Exit M&A

Source: Jonathan Norris, Kristina Peralta, “Trends in Healthcare Investments and Exits 2015,” SVB

See SJA M&A/IPO Advisory Services

M&As – Significant Exit Route

M&A Driven Events

“By the 2006-2010 period, almost all of the exits, upwards of 75% – regardless of size – were M&A driven events. The recent IPO window (2013/14) pushes the data a bit, but not enough to eliminate the dominance of M&A exits: More than 60% of the big >250M exits in our space in the last few years have been M&A.”

VC-Backed Biotech Exit routes: Percentage of "Exits" of any size from M&A vs IPO
VC-Backed Biotech Exit routes: Percentage of “Exits” of any size from M&A vs IPO
  • “IPOs used to be the only real game in town. Driving 67% of the exits and over 82% of the >250M exits in the late 1990s.”
  • “The share of big exits vs. all exits contributed by either path has converged over time. In the last 7 years, roughly identical percentages exits in the two charts above, suggesting that the relative contributions of IPOs and M&As at big and small valuations are similar.”

Source: Bruce Booth, “Acquisitions As the Silent Partner in Biotech Liquidity: IPO Vs. M&A Exit Paths,” Forbes, 10/27/1014

Two Recent Spectacular Wins!

Alios acquisition by J&J for $1.75B

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Seragon’s purchase by Roche/Genentech for $725M upfront and $1B in earn outs

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Bruce Booth, “Acquisitions As the Silent Partner in Biotech Liquidity: IPO Vs. M&A Exit Paths,” Forbes, 10/27/1014, NVCA

See SJA M&A/IPO Advisory Services