• Healthcare M&A Report 2014

    Trends in Healthcare Investments and Exits

  • Healthcare Investments Stabilize as IPOs Surge

    Silicon Valley Bank’s annual healthcare M&A report, Trends in Healthcare Investments and Exits, examines the merger and acquisition and IPO activity of private, venture-backed biopharma and medical device companies.

    Among the findings:

    • Healthcare IPOs triple in 2013, leading to record potential IPO/big exit returns of $12.5 billion.
    • Venture fundraising and investment stabilize to drive innovation
    • Large biopharma companies are essentially outsourcing early-stage R&D by investing heavily in young venture-backed companies. Biopharma big exit M&A activity reaches record valuations
    • Device big exit M&A activity declines, but values increase
    • Bucking convention, FDA approval  not necessary for exit
    • Healthcare venture will continue to see strong returns

    Download the Healthcare M&A Report 2014 (PDF)

    The story of the healthcare venture industry in 2013 can be summed up in three words: initial public offerings.  In a year in which the number of healthcare IPOs tripled, public market enthusiasm helped stabilize venture investment and fundraising overall. It also led to increased valuations of big exit mergers and acquisitions.  Venture investment in healthcare saw the biggest returns since SVB started tracking the data in 2005, reaching double the next best year.  As we note in this report, the climate for IPOs is cooling.  However, we see the current balanced financing ecosystem continuing to prime the innovation pump and encourage smooth capital flow to keep the industry humming.