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By Marie Daghlian

Life sciences companies raised record amounts of capital during 2010, a year that saw change in many parts of the world as global economies continued to recover, or be bailed out, from the devastating financial crisis of recent years. Venture financings more than doubled to $9 billion in 2010 from just over $4 billion in 2009, with most of the money raised during the first half of the year.

As the IPO market got into full swing, however, it was evident that investors were not interested in high-risk companies without revenues. Most of the U.S. IPOs were completed at significant discounts to companies' initial expectations. Still, they raised hopes for many other venture backed companies that the public markets could be a viable source of much needed capital. Some 19 life science companies raised almost $1.6 billion through initial offerings.

On the other side of the world, China's IPO market was hot, as investors rushed to own a piece of the country's fast-growing healthcare market. And Japan's Otsuka Pharmaceuticals' decided to go public to fund its global expansion, raising $2.4 billion in the largest healthcare IPO to date.

Public financing was also strong during the year, with $64.4 billion raised globally, and $44.3 billion raised in the United States alone. Most of the money came from debt issues, while money raised from secondary offerings dropped from $6 billion in 2009 to $4.1 billion in 2010. U.S. companies raised $30.5 billion through debt issues in 2010.

Global dealmaking activity was also strong, with $148 billion in disclosed M&A transactions and $63 billion in partnering activity. The January edition of The Burrill Report will have a full tally of the life sciences financial picture in 2010.

Deals for the Week Ending December 31, 2010

Global Venture Financings
Company Location Amount Raised (USD M) Principal Focus
Bonovo Orthopedics Beijing, China 10.0 Orthopedics
Aarden Pharmaceuticals Indianapolis, IN 0.3 Improved drugs
Total Raised U.S. 0.3
Total Raised Non-U.S. 10.0
PUBLIC FINANCINGS
Company Ticker Amount
Raised (USD M)
Financing Type
Cambridge Heart OTC:CAMH 0.8 PIPE
Transgenomic TBIO 6.0 PIPE
BioSante Pharmaceuticals BPAX 18.0 PIPE-RDO
DARA BioSciences DARA 4.8 PIPE-RDO
Lannett Company LCI 15.0 PIPE-RDO
Cleveland Biolabs CBLI 8.4 PIPE-RDO
Pyng Medical (Canada) TSX-V:PYT 0.6 PIPE
Kangmei Pharma (China) SHEX:600518 529.0 Follow on
DiaMedica (Canada) TSX-V:DMA 2.7 Warrant exercise
Provectus Pharmaceuticals Private 1.0 CEFF--$30 million commitment
Compugen (Israel) CGEN 5.0 R&D funding agreement
TOTAL PUBLIC FINANCINGS-US 537.3
NON-US 54.0
M&A
Acquirer Target Deal Value
(USD M)
Focus
Warburg Pincus ReSearch Pharmaceutical Services 227.3 Contract Research Organization
Sucampo Pharmaceuticals (NASDAQ:SCMP)
Sucampo AG (Switzerland) 80.0 Intellectual property
Pfizer (NYSE:PFE)
Akorn (NASDAQ:AKRX)
35.0 Generics
Kelun Pharmaceutical (China) Guangdong Zingfa Pharmaceutical (China) 22.3 Pharmaceuitcals
Surya Pharmaceuticals (India) ActivOn 22.0 Over-the-counter
Pfizer Animal Health Synbiotics N/A Veterinary diagnostics
Pathfinder SyntheMed N/A Cell therapies
Roche (Switzerland) (OTCQX:RHHBY)
Marcada Biotech N/A Metabolic
Alliances
Company/Licensee Company/Licenser Deal Value
(USD M)
Focus
Elan Pharmaceuticals (Ireland) Transition Therapeutics (Canada) (NASDAQ:TTHI)
20.0 Alzheimers Deal Amendment
Chindex International (NASDAQ:CHDX)
Fosun Pharma (China) N/A Medical Device Joint Venture
Merial (France) GenVec (NASDAQ:GNVC)
N/A Animal Vaccine Collaboration

Disclosure: No positions

Source: Life Sciences Companies Raise Record Amounts of Capital