Year 2000 Medical Dealmaking: Fomenting and Quashing the Revolution

Apr 25, 2001, 01:00 ET from Windhover Information

    NORWALK, Conn., April 25 /PRNewswire Interactive News Release/ -- "If
 there was one lesson to draw from health care industry dealmaking in 2000, it
 was that dealmaking leverage lies with those with the power to either keep and
 profit from the status quo or remake it," says Roger Longman of Windhover
 Information, in the preface to the 2001 "Health Care Strategist," the
 industry's leading authority on annual dealmaking.
     Mr. Longman goes on to say that, in pharmaceuticals, the revolutionaries
 gained dealmaking leverage during 2000 as investors' understanding of Big
 Pharma's growth troubles fed "bio-hysteria" in the early part of the year.
     During the most hysterical period, January-March, IPO valuations averaged
 $532 million, five times historic levels.  But by the beginning of 2001, the
 bubble had burst and most of the newly public biotechs were trading 50% or
 more below their offering prices.
     Much better performances came from smaller companies with later-stage
 products, as prices for these important in-licensing candidates reached
 unprecedented levels -- up-front fees for the most sought after molecules of
 2000 frequently exceeded $30 million.
     Diagnostics start-ups, like those in genomics, were hot news in 2000 as
 investors recognized that the nearest-term potential of genomics and
 proteomics technologies is as disease markers as well as markers for drug
 function.
     Diagnostics-related companies raised a total of $2.4 billion in 2000,
 compared to a total of $2.1 billion in the previous four years.
     In contrast to this, medical device dealmaking was quiet during 2000, and
 the "old guard" retained the upper hand, since few device start-ups could show
 either significant growth or revolutionary promise.  Moreover, the top-tier
 device companies, unlike their pharma peers, didn't feel the need to consider
 high-cost acquisitions of start-ups, or mega-mergers to meet growth
 expectations, since they performed well in their own rights.
     You can find the full text of Mr. Longman's article in the just-released
 "Health Care Strategist."  Now in its 15th year, the "Health Care Strategist"
 is the industry's leading authority on annual dealmaking.  Unique among deal
 directories for its expert and expansive coverage, this year's edition
 contains data on more than 1800 mergers & acquisitions, financial offerings,
 and alliances signed in 2000.  To find out more or to order Windhover's
 "Health Care Strategist," go to http://www.windhoverinfo.com/products/HCS.htm.
     Since 1989, Windhover has been dedicated to providing superior analysis
 and commentary on health care market trends, company strategy, emerging
 technologies, dealmaking, and key industry events.
     Contact customer service at: phone: 203-838-4401 ext. 232, email:
 custserv@windhover.com.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X10971071
 
 

SOURCE Windhover Information
    NORWALK, Conn., April 25 /PRNewswire Interactive News Release/ -- "If
 there was one lesson to draw from health care industry dealmaking in 2000, it
 was that dealmaking leverage lies with those with the power to either keep and
 profit from the status quo or remake it," says Roger Longman of Windhover
 Information, in the preface to the 2001 "Health Care Strategist," the
 industry's leading authority on annual dealmaking.
     Mr. Longman goes on to say that, in pharmaceuticals, the revolutionaries
 gained dealmaking leverage during 2000 as investors' understanding of Big
 Pharma's growth troubles fed "bio-hysteria" in the early part of the year.
     During the most hysterical period, January-March, IPO valuations averaged
 $532 million, five times historic levels.  But by the beginning of 2001, the
 bubble had burst and most of the newly public biotechs were trading 50% or
 more below their offering prices.
     Much better performances came from smaller companies with later-stage
 products, as prices for these important in-licensing candidates reached
 unprecedented levels -- up-front fees for the most sought after molecules of
 2000 frequently exceeded $30 million.
     Diagnostics start-ups, like those in genomics, were hot news in 2000 as
 investors recognized that the nearest-term potential of genomics and
 proteomics technologies is as disease markers as well as markers for drug
 function.
     Diagnostics-related companies raised a total of $2.4 billion in 2000,
 compared to a total of $2.1 billion in the previous four years.
     In contrast to this, medical device dealmaking was quiet during 2000, and
 the "old guard" retained the upper hand, since few device start-ups could show
 either significant growth or revolutionary promise.  Moreover, the top-tier
 device companies, unlike their pharma peers, didn't feel the need to consider
 high-cost acquisitions of start-ups, or mega-mergers to meet growth
 expectations, since they performed well in their own rights.
     You can find the full text of Mr. Longman's article in the just-released
 "Health Care Strategist."  Now in its 15th year, the "Health Care Strategist"
 is the industry's leading authority on annual dealmaking.  Unique among deal
 directories for its expert and expansive coverage, this year's edition
 contains data on more than 1800 mergers & acquisitions, financial offerings,
 and alliances signed in 2000.  To find out more or to order Windhover's
 "Health Care Strategist," go to http://www.windhoverinfo.com/products/HCS.htm.
     Since 1989, Windhover has been dedicated to providing superior analysis
 and commentary on health care market trends, company strategy, emerging
 technologies, dealmaking, and key industry events.
     Contact customer service at: phone: 203-838-4401 ext. 232, email:
 custserv@windhover.com.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X10971071
 
 SOURCE  Windhover Information