During Q1 of 2024, the global healthcare and life sciences sector saw 138 R&D partnerships accumulating $36.9 billion, including $2.3 billion in upfront cash and equity, a decline from the previous quarter, Q4 of 2023, where 166 deals raised $73.0 billion, with upfront cash and equity hitting $8.2 billion.
R&D Partnerships – Global Healthcare and Life Sciences
Q1 2024 Top R&D Partnerships
Argo Biopharmaceutical Licensing Deal with Novartis – (January 2024)
Argo Biopharmaceutical granted Novartis exclusive global rights to develop and market a Phase I RNA-based therapy for cardiovascular diseases, with an option for two additional therapies. Novartis also secured exclusive rights (excluding China) for Phase 1/2a therapy. Argo will receive $185M upfront and stands to earn up to $3.9B in option fees, milestones, and royalties.
MOMA Therapeutics Agreement with Roche – (January 2024)
MOMA Therapeutics provided Roche exclusive global rights to develop and sell cancer therapies utilizing MOMA’s Knowledge Base platform. MOMA leads development until confirmation, with Roche assuming responsibility afterward. MOMA will receive $66M initially and earn up to $2B in milestones and tiered royalties.
Biopharma, Platform, MedTech, and Diagnostics M&A
In Q1 of 2024, the biopharma, platform, medtech, and diagnostics saw 72 M&As, totaling $37.7 billion with contingents and $34.5 billion in cash. Again, a decrease from Q4 2023, where 78 M&As totalled $68.7 billion with contingents and $65.4 billion in cash.
Q1 2024 Top M&A’s
Novo Holdings’ Acquisition of Catalent – (February 2024)
Managing assets for Novo Nordisk’s foundation, Novo Holdings set to buy Catalent, a contract development and manufacturing organization (CDMO), for $16.5 billion. Novo Nordisk will purchase three fill-finish sites from Catalent for $11 billion upfront to support the demand for Wegovy and Ozempic. Novo Holdings will pay $63.5 per share in cash for all of Catalent’s outstanding shares, a 16.5% premium over Catalent’s closing price on February 2, 2024. The merger is expected to conclude by late 2024.
Gilead’s Acquisition of CymaBay – (February 2024)
Gilead acquired CymaBay for $32.5 per share in cash, reflecting a 27% premium over one day, totaling an equity value of $4.3 billion. CymaBay’s primary asset is seladelpar, primary biliary cholangitis (PBC), and pruritus treatment, acting as a selective peroxisome proliferator-activated receptor delta (PPARδ) agonist. Gilead finalized the acquisition on March 24, 2024.
Venture Activity – Global Healthcare and Life Sciences
In Q1 2024, venture funding in global healthcare and life sciences surged, with 306 rounds raising $12.4 billion. This was up from Q4 2023 when 277 rounds raised $8.7 billion. The two quarters saw 583 rounds and $21.0 billion in total funding.
Q1 2024 Top Ventures
Radiology Partners’ Financing Transactions – (February 2024)
Radiology Partners (RP) completed significant financing transactions, a $720 million growth equity investment, exchange offers for existing notes, and an amendment to credit facilities. Through these, RP raised approximately $720 million in new equity financing, reduced debt, and extended debt maturities to 2028-2030. With over $500 million in cash and liquidity, RP aims to innovate in clinical value, technology & services.
Launch of Mirador Therapeutics – (February 2024)
Previously associated with autoimmune drug developer, Prometheus Biosciences launched Mirador Therapeutics. Backed by over $400 million, Mirador focuses on developing drugs for inflammatory and fibrotic diseases. Based in San Diego, the company utilizes a precision approach, leveraging genetic insights and extensive datasets.
IPO – Global Healthcare and Life Sciences
Q1 of 2024 for global healthcare and life sciences saw 11 IPOs, generating $5.1 billion, a surge from Q4 of 2023, where only 3 IPOs raised $0.9 billion.
Q1 2024 Top IPOs
Galderma Group AG’s IPO Exercise – (March 2024)
Galderma Group AG, a leader in dermatology, announced that Joint Global Coordinators exercised their option to purchase 5,626,592 additional shares at CHF 53 per share, totaling CHF 298 million. The stabilization period ends on March 26, 2024. Total shares sold in IPO, including over-allotment, reach 43,137,209 with a placement volume of around CHF 2.3 billion (USD 2.5 billion). Free float is expected to increase from 20.4% to 22.8%.
BrightSpring Health Services’ IPO and Unit Offering – (January 2024)
BrightSpring Health Services, Inc. prices its IPO at $13 per share for 53,333,334 common stock shares. Concurrently, offers 8 million tangible equity units at $50 per unit. Trading begins on the NASDAQ Global Select Market on January 26, 2024, under the “BTSG” and “BTSGU” ticker symbols. Offerings close on January 30, 2024, with unit offering contingent on completing common stock offerings.
