- Expect Ongoing Disruption in the Biotech Sector – Biotech companies will continue to encounter a myriad of issues around financing. Stock prices of publicly traded biotechs continue to languish. Venture Capital (VC)-funded biotechs are struggling to secure their next round of investment or the funding of their ongoing clinical development programs. VCs have become highly selective and this elongates the investment path.
- The U.S. Market is the Place to be – Large non-U.S. pharmas and foreign biotechs are increasingly looking to the United States as a destination for growth. While acknowledging the size of the U.S. market, the underlying motivation to “go U.S.” is driven by current finances, a large market, and other drivers. In turn, this creates opportunities for U.S. VCs and other funding sources to “onshore” innovative technology and products.
- Artificial Intelligence (AI) in Pharma is Still to be Determined – While going strong in the medtech and medical device sectors, the validation of AI use in drug development and adoption by big pharma will take time. Validation of the use of AI will likely occur through a combination of incremental technological success, regulatory approval, and commercial adoption.
- Disruption Creates Opportunities for Investors – Investors who remain disciplined, but also operate outside the norm, can take advantage of the disruption and access technologies that may not have otherwise been on the radar.
- Expect Increasing Use and Introduction of Innovative Financing – The uncertain market is ripe for nontraditional sources of funding. As providers of alternative financing become more sophisticated in their structures to meet the needs of the market, expect to see further unlocking of creative funding to meet market demand.
About the Authors:
David J. Dykeman is Co-Chair of Greenberg Traurig, LLP’s global Life Sciences & Medical Technology Group and serves as Co-Managing Shareholder of Greenberg Traurig's Boston office. Dykeman's practice focuses on securing worldwide intellectual property protection and related business strategy for high tech clients, with particular experience in life sciences, medical devices, robotics, materials, and information technology. He is a registered patent attorney with over 25 years of experience in patent and intellectual property law, providing strategic patent portfolio development and intellectual property advice for clients including major research institutions, multi-national corporations, and start-up companies. He also performs patent due diligence to assess patent portfolios for venture capital investment, mergers and acquisitions, and licensing opportunities.
Wayne H. Elowe is Co-Chair of Greenberg Traurig’s global Life Sciences and Medical Technology Group and Co-Chair of the Corporate Practice in Atlanta. He concentrates his practice on corporate counseling, international business and complex commercial transactions, with an emphasis on mergers and acquisitions, joint ventures, strategic investments and alliances, licensing, and technology transactions. Elowe has represented clients in over 50 countries in North America Asia, Europe, the Middle East and Latin America. He has more than 28 years’ experience representing U.S. companies doing business in China and representing Chinese public and privately-owned companies as their global counsel.
Fiona Adams is Managing Shareholder of Greenberg Traurig’s London office and the Co-Chair of the Global Corporate Practice. She primarily represents corporate clients, focusing her practice on mergers and acquisitions, and other transactional matters. Her work spans a range of industries, including pharmaceuticals, financial institutions, media, and retail. Adams has broad experience working on large complex cross-border transactions.