Biotech funding rises 75% year-over-year, Braveheart surges

Investing.com -- Global biotech funding for the year through August 7 increased 75% compared to the same period last year, according to Macquarie. The growth was driven by initial public offerings, which rose 235% year-over-year, and follow-on offerings, which climbed 138%.

The XBI biotech index gained 7% in the week ending August 7, reaching $157.4.

For the four-week period ending August 7, biotech funding increased 14% compared to the prior four weeks, supported by venture funding growth of 72%, IPO growth of 42%, and PIPE growth of 10%. Follow-on offerings declined 46% during this period.

Compared to the same four-week period last year, funding rose 62%, led by a sixfold increase in IPOs and venture funding that more than doubled.

Braveheart Bio, the second company spun out from Hengrui, raised $382.5 million in an upsized IPO on the Nasdaq. Shares surged 66% on the August 6 trading debut. The proceeds will fund a Phase 3 study of cardiac myosin inhibitor BHB-1893 for hypertrophic cardiomyopathy. Hengrui held an 11.3% stake before the IPO.

Curium agreed to acquire Lantheus for up to $8 billion, representing approximately a 29% premium over the 30-day average price. The deal gives Curium control of Lantheus' radiodiagnostics portfolio, including Pylarify, a prostate cancer imaging drug approved by the FDA in 2021.

Supernus and Indivior agreed to an all-stock merger creating a company focused on central nervous system treatments with approximately $2.2 billion in 2026 sales. The combined entity, which will keep the Supernus name, expects annual cost savings of approximately $125 million. The transaction is expected to close in the fourth quarter of 2026.

Tarsus Pharma agreed to acquire Alkeus Pharma for $450 million upfront, consisting of $270 million in cash and $180 million in stock, plus up to $350 million in milestone payments. The deal includes gildeuretinol, a Phase 3 oral treatment for Stargardt disease. Tarsus raised $125 million through a PIPE offering alongside the acquisition.

KKR agreed to take medical device contract manufacturer Integer private in an all-cash $5.7 billion deal, representing approximately a 52% premium. Integer reported second-quarter 2026 sales of $464 million, down 2.6% from the prior year.

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