Issue Date: July 30, 2012
Biotech Investment Slumps
Two new reports on second-quarter venture capital investment show a sharp decline in investment in the biopharmaceutical sector. Dow Jones VentureSource reports 54 biopharma deals for the quarter, a 22% decline compared with the second quarter of 2011. Capital invested, at $570 million, was down 43% compared with the second quarter of 2011, according to Dow Jones. The drop is worse than the 33% investment decline in health care overall. A report by PricewaterhouseCoopers and the National Venture Capital Association counts $697 million going to 90 biopharmaceutical deals in the second quarter, marking the lowest total investment in the sector since the first quarter of 2003. PwC and NVCA report that overall venture capital investment reached $7 billion in 898 deals in the quarter, a 17% climb in value and an 11% increase in the number of deals compared with the year-ago quarter. Both reports show that investment in consumer Internet companies remains strong, and Dow Jones notes that the bright spot in health care is information technology, which is benefiting from interest in managing health information and data.
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