PRINT THIS PAGE US health care venture capital dominated by biopharmas in Q313/10/2005. Source: AltAssets. 
 During the third quarter of 2005, health care venture capital funding increased by more than 30 per cent, compared with the Q3 2004, reveals new research.
The research was conducted by the Healthcare Corporate Finance News publication of Irving Levin Associates.
In total, $1.7bn in venture capital was raised by 97 health care companies during the third quarter ended September 30, 2005.
Venture investing peaked during the first quarter, began to slow in the second and tapered off a bit during the third quarter, as in previous years.
Health Care Venture Capital Investment Activity, Q3:03 to Q3:05M
Quarter, number of deals, total invested
Q3:03 - 107 - $1.4bn
Q4:03 - 81 - $1.8bn
Q1:04 - 97 - $2.0bn
Q2:04 - 111 - $2.0bn
Q3:04 - 94 - $1.3bn
Q4:04 - 97 - $1.6bn
Q1:05 - 122 - $2.0bn
Q2:05 - 116 - $1.9bn
Q3:05 - 97 - $1.7bn
During third quarter 2005, the Biopharmaceutical sector accounted for the greatest portion of health care venture capital invested, with 25 biopharmas raising $613.8m in venture funding, and followed, but not closely, by Pharmaceuticals, with 14 companies raising almost $318m.
The Biotechnology sector, with 22 deals, and Medical Devices with 21 deals, each accounted for just under $300m in funding.
Six firms represent the most active health care venture capital investors of the third quarter ended September 30, 2005, based on participation in number of deals.
Sprout Group, MPM Capital and HealthCap each made five investments, while Sanderling Ventures, Delphi Ventures and Johnson & Johnson Development Corp. each made four investments. Others, including Domain Associates, OrbiMed Advisors and Quaker BioVentures, each invested in three companies.
"Venture funding of biopharmaceutical companies has increased simultaneously with advancements made in the scientific research of genomics, proteomics, proteins, enzymes, antibodies and phytochemicals," explained Gretchen S. Swanson, Associate Editor of Healthcare Corporate Finance News. "The health care industry's quest for more personalized medicine is also most likely fueling investor interest in this sector."
Seven health care companies closed rounds of $50m or more each this quarter. Two pharmaceutical companies, Triax Holdings ($77m) and Perlecan Pharma ($52.5m), plus Cerexa, Inc. ($50m), a biopharmaceutical company, closed their first rounds of institutional funding. Four more biopharmas closed third or later rounds: Replidyne, Inc. ($62.5m), Affymax, Inc. ($60m), Speedel ($56m) and Amicus Therapeutics ($55m).
"Investors have not been swayed by the fickleness of the IPO market," added Ms. Swanson. "Many private health care companies are securing later rounds, and pharmaceutical companies continue to acquire biopharmas and biotechs or their compounds."
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