Biotechnology: Although financing for biotech companies is improving, it still remains tough. In the first half of 2009, funds raised by biotechnology and specialty pharmaceutical firms increased 41% to $8.3 million, excluding revenue from partnerships. Compared to the first half of 2007, financing was down 55%. Money raised through public offerings and alternative financing rose 78% and 75% to $1.3 billion and $4.8 billion, respectively. Venture capital financing declined 8% to $2.2 billion. Among the types of financing gaining favor are registered direct offerings and equity financing facility agreements. In total, public companies’ new funding rose 75% to $6.1 billion in the first half of the year. However, funding raised by 143 private firms declined 8% to $2.2 billion, led by Clovis Oncology and NovImmune SA. Despite some thawing of capital markets, analysts warn that financing remains tight and could stay so for one or two years.

Source: Signals