Biotech accumulators

It is becoming increasingly clear that investors in the European biotech sector are becoming much more discerning. No longer is it enough to have a promising clinical candidate to attract finance. Investors are backing companies they believe are robust enough to develop into sustainable businesses with multiple product opportunities. This situation is creating an opportunity for Europe’s asset accumulators to scoop up programs from financially marooned companies.

In the past two weeks, MediGene AG and Santhera Pharmaceuticals AG have managed to pluck under-resourced assets from companies that no longer enjoyed the wholehearted support of their venture capital backers. MediGene (FSE:MDG; Munich, Germany) announced its plan to acquire the assets of Avidex Ltd. (Oxford, U.K.), while Santhera (Leistal, Switzerland) has picked an option to acquire Juvantia Pharma Ltd. (Turku, Finland). ...