Up to now it's been a sellers market for European biotechs when it comes to making deals with pharma organizations out to the beef up their pipelines. Now the Financial Times says that the credit crisis and other market woes (IPOs have evaporated and venture capitalists are looking for 25 to 30 percent returns) have begun to cut off other sources of cash for biotech companies, leaving them more willing to accept lower offers from cash-rich pharma outfits. The same trend will drive more consolidation of the industry, such as we saw in yesterday's marriage of BTG and Protherics.
"In the past few years, it was a sellers' market driving up valuations for less and less mature technology," says Tibur Papp, head of advisory at PharmaVentures, a UK-based consultancy. "Now the environment is changing and with a significant impact on biotech finance, it has become more difficult to find partners and good deals."
- check out the article from the Financial Times