12:00 AM
 | 
Jan 21, 2013
 |  BioCentury  |  Finance

January's jackpot

2013 biotech follow-ons off to fastest start in nearly 20 years

Including at least $757 million from last week, biotechs have now raised $947 million in follow-ons since Jan. 1, making this the fastest start to any year since BioCentury began tracking financings in 1994.

Biotechs also raised $465 million in three convertible note deals to bring the weekly industry total to over $1.2 billion.

Bankers believe 2013 will be a strong year for biotech financings, but don't expect the breakneck pace of the first two-and-a-half weeks to be maintained.

RBC's Andrew Singer offered a handful of reasons for the fast start, starting with the tax deal in Washington. "The markets hate uncertainty," he said.

Singer also said risk appetite is typically greater at the start of a year than it is in December.

Singer and Grant Miller of Cowen noted that inflows into equity funds are starting to become strong, and portfolio managers are looking to put the money to work.

According to Guggenheim's Stuart Duty, many funds were...

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