Ex-Congressman Gephardt Lobbies for Medical Innovation Czar, Federal Help for VCs
This article was originally published in The Pink Sheet Daily
Now a pharma industry lobbyist, Gephardt's group is calling for federal tax credits and more NIH and FDA funding even as deficit hawks begin to circle the Obama administration.
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IRS guidance for the new Therapeutic Discovery Project Program limits awards to $5 million per company, but actual awards are expected to be lower due to number of applicants.
Despite a few bright spots, the fundraising environment remains difficult for many venture investors. Biotechs that went public during the 2005-2007 window have largely underperformed, despite hitting the stock exchanges with what plenty of CEOs and VCs felt were artificially low prices negotiated by an oligarchy of biotech IPO buyers. Moreover, pharmaceutical companies have been buying fewer, not more, biotechs - even as more companies are seemingly created with acquisition, not IPO, in mind. Meanwhile, the M&A deals that do occur are increasingly risk-sharing affairs that resemble alliances, replete with earn-out payments triggered by development, regulatory, or commercial milestones. In short: good venture exits have been extremely hard to come by. And data from Elsevier's Strategic Transactions analyzed by START-UP suggest that although these risk-sharing deal structures may be a by-product of a miserable economy, they are likely to stick around regardless of any economic turnaround.
Celgene will get exclusive use of Quanticel's single-cell genomic analysis to tweak its clinical pipeline, and it also has exclusive options to acquire the venture-backed start-up.