With the masses of money being thrown at the private equity market, it's little surprise that acute concerns remain over upward pressure this cash can have on valuations for private biotech companies. However, valuations have come down considerably over the past six to nine months - by 30%-50% on the closely watched mezzanine rounds, according to some estimates.

The shrinking valuations are making some VCs feel more comfortable putting some of their dry powder to work, and they are making bankers more sanguine about the public market's ability to support valuations when the IPO window opens up. But other VCs still are finding valuations too high.