Pharma spinouts: a snapshot of where and how pharmas spin out their assets

Pharma spinouts account for small percentage of total newcos, but large share of capital raised

The handoff of innovation to academia is all but complete, with universities and other academic institutions accounting for the origin of about 75% of new companies formed in the last three years. But while pharma spinouts account for a small minority of the total, they pack a punch when it comes to financial backing.

Since the start of 2017, 602 companies have announced seed or series A financing.

BioCentury’s analysis identifed the technology origin for 543 of these, 402 of which were created with assets licensed from academia.

In the same time, pharmas have spun out technologies to create 43 new companies, 35 of which disclosed a seed or series A financing and eight of which had no disclosed initial funding. A further 99 startups were spun out of other, smaller companies (see chart: “Technology Sources for Seed and Series A Companies, 2017-19).

Figure: Technology sources for seed and series A companies, 2017-19

Spinout cash

While academic startups have continued to attract increasing amounts of

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