Biotech funding rises 75% this year as M&A activity continues

Investing.com -- Global biotech funding increased 75% year-over-year so far this year, according to Macquarie data for the week ended August 14. The SPDR S&P Biotech ETF closed flat for the week at $157.40.

The funding growth remained steady compared to 76%, 79%, and 81% increases in the prior three weeks. Initial public offerings rose 224% year-over-year, while follow-on offerings increased 140%. Private investment in public equity grew 29%, and venture funding rose 38%.

Over the past four weeks from July 20 to August 14, funding decreased 38% compared to the previous four-week period, driven by a 67% decline in follow-on offerings. The same four-week period showed a 7% increase compared to the same period last year, supported by a nearly fourfold rise in IPOs and 34% growth in venture funding.

Jazz Pharmaceuticals will acquire Actio Bio for $820 million upfront and up to $500 million in milestone payments. The deal includes ABS-1230, a Phase 1b/2a therapy for KCNT1+ epilepsy. PTC Therapeutics acquired Sangamo's Fabry disease gene therapy ST-920 for $111 million upfront plus up to $100 million in milestones.

Silence Therapeutics completed a $200 million upsized IPO following positive Phase 2 trial results for divesiran in Polycythemia Vera. The drug achieved an 88% response rate compared to 19% for placebo. The company plans to present full Phase 2 data at ASH26 and initiate a Phase 3 trial in the first half of 2027.

Zealand Pharma sold its 1% interest in global rusfertide sales to Royalty Pharma for up to $100 million. Vaderis Therapeutics raised $152 million in a Series B round and launched a Phase 3 trial for engasertib in hereditary hemorrhagic telangiectasia. Boulevard Bio launched with $65 million in funding to advance BLVD101 for IgA nephropathy.

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