Venture capital investors remain positive about US biotech in Q2 2008

G Steven Burrill, CEO, Burrill & Company said. ‘Except for venture capital deals, all other forms of financing have fallen compared to the first quarter of 2008 and comparative 2007 figures.

‘As detailed analysis shows in our new Burrill Biotechnology Report, companies are resorting to other creative ways of financing in addition to these traditional and well established instruments. For example, Exelixis obtained a flexible $150m line of credit from healthcare hedge fund Deerfield Management; and, CV Therapeutics sold half of the North American royalties it is due from partner Astellas for the newly approved drug Lexiscan to a private investment group, which netted $175m,’ Burrill continued.

The $1bn invested in venture capital deals in Q2 2008 was down from the $1.1bn invested in Q2 2007, but up from the $837m invested in the first quarter of this year.

Deal flow was up from 136 during the same period in 2007.

The average deal size, however, was lower in Q2 2008, at approximately $13m per deal, compared to $18.6m per deal in the same period last year 2007.

Burrill & Company, based in San Francisco, is a specialist in life sciences with activities in venture capital, private equity, merchant banking and media. The Burrill family of venture capital funds has over $950m under management.

Copyright © 2008 AltAssets