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A Healthy Dose of Funding for Pharma, Biotech

Jun 21, 2009 - 8:35 AM EDT

The Burrill Report submits:

by Marie Daghlian

Since early June, there has been a marked increase in venture capital raised by medical device companies, with six companies announcing the completion of financing rounds. A total of $40.1 million was raised during the second week of June in three financings, and another $58 million was raised during the third week of June by three more medical device companies...

...Economic conditions continue to remain weak for raising capital outside of venture activity. Public companies have also been relying on private investors for funding and PIPEs continue to be the main vehicle for raising capital. Outside of a secondary or follow-on financing on the heels of a major announcement such as Dendreon's (DNDN) $300-million issue after the release of positive data on its cancer vaccine Provenge, there has only been a trickle of secondary financings, and they have to be creative to get done. ImmunoGen (IMGN) decided to take the creative route. Aiming to bolster its balance sheet, the Waltham, Massachusetts-based oncology company, announced a public offering of 5 million shares of its common stock at $7 each, a 10.5 percent discount to its closing price on June 17.

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Source: Seeking Alpha (Jun 21, 2009 - 8:35 AM EDT)