On January 28, 2021 Locust Walk Partners reported compiles key statistics and trends on strategic transactions and financings (Press release, Locust Walk Partners, JAN 28, 2021, View Source;utm_medium=rss&utm_campaign=2020yearendreport [SID1234574412]). Our 2020 Year End Report: Global Trends in Biopharma Transactions applies the latest data to analyze current activities in the life science deal landscape.

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2020 turned out to be a record year for financings across the globe, in the US, Europe and Asia alike. Will the treasure chest of private capital begin to run low or stack higher in the new year? Perhaps we’ll see an increase in licensing transactions or M&A as capital is put to work and begins to bear fruit. We look forward to following the trend lines in Q1 2021.

A few more key insights across geographies from 2020:

United States

Approval of two COVID-19 vaccines led biopharma indices and the S&P 500 to finish the year in an upswing
The healthy domestic biopharma IPO landscape established 2020 as a record year for deal value, with SPAC exchange listings and SPAC IPO aggregate deal value also reaching record highs
Public and private financing activity remains notably robust, as companies seek to take advantage of the open IPO window and positive industry perceptions from investors
Private financings in Q4 closed out the strongest year on record, and 2019/2020 biopharma IPOs continue to perform well in the public markets, suggesting investors are bullish long-term on new biopharma opportunities
M&A activity has lacked the ‘mega deals’ of prior years, but strong deal flow among licensing deals and a spike in M&A deal volume in Q4 demonstrate sustained interest in strategic transactions
Europe

European biotech financings set a historical record this year with no signs of slowing, considering Q4 had the highest volume to date
Financings in Europe were weighted more heavily towards earlier stage investments in Q4 as in the robust market environment investors are willing to infuse capital into more risky, earlier stage rounds
Despite the high influx of capital into private markets, the public European biopharma markets slowed with only one IPO in Q4 2020
The total value of M&A deals increased significantly in Q4 and is expected to continue gaining momentum through 2021 as a few large deals have already been announced
Japan

Another strong year in licensing, led by Daiichi Sankyo’s second ADC deal with AstraZeneca in a row. Number of deals with over $10M in deal value was 31 (1 less from 2019) but aggregate deal value was up 5% from 2019
More noticeable in 2020 was the volume and total size of venture financing (24 deals and $159M, respectively) which vastly surpassed the previous record set in 2018 (14 deals and $114M, respectively)
China

China continues its torrid pace of in-licensing deals (75 in 2020, up 7% from 2019) and features transactions with substantial size, including 6 deals with upfront payment of $30M and above.
New drug candidates by Chinese companies are starting to be recognized, as there were 13 out-licensing deals announced, many with major pharma companies such as Abbvie, Bayer, Eli Lilly and Pfizer
Financing in biotech benefitted from the growing interest in health care due to emergence of COVID-19, as 28 companies went public and venture investment volume and aggregate venture investment amount far exceed past results​

On January 28, 2021, Ligand Pharmaceuticals Incorporated (the "Company") reported that entered into amendments (the "Amendments") with Barclays Bank PLC, Deutsche Bank AG, London Branch, and Goldman Sachs & Co. LLC (together, the "Option Counterparties") to the convertible note hedge transactions, dated May 17, 2018 and May 18, 2018 (collectively, the "Convertible Note Hedge Transactions") it initially entered into in connection with the issuance of its 0.75% convertible senior notes due 2023 (the "2023 Notes") (Filing, 8-K, Ligand, JAN 28, 2021, View Source [SID1234574376]). The Company entered into the Amendments following the repurchases of approximately $20.3 million in principal of the 2023 Notes for approximately $19.1 million in cash, including accrued interest of $0.1 million, during the quarter ended December 31, 2020. The Amendments provide that the options under the Convertible Note Hedge Transactions corresponding to such repurchased 2023 Notes will remain outstanding notwithstanding such repurchases.

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On January 28, 2021 Lipocine Inc. (NASDAQ:LPCN), a clinical-stage biopharmaceutical company focused on metabolic and endocrine disorders, reported the closing of an underwritten public offering of 16,428,571 shares of its common stock, offered at a price of $1.75 to the public, which included the exercise in full by the underwriters of their option to purchase 2,142,857 additional shares of common stock at the public offering price (Press release, Lipocine, JAN 28, 2021, View Source [SID1234574375]). Gross proceeds to Lipocine were approximately $28.7 million before deducting underwriting discounts and commissions and other offering expenses payable by the Company.

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Raymond James & Associates, Inc. acted as sole book-running manager and Ladenburg Thalmann & Co. Inc. acted as co-manager for the public offering.

The shares were offered pursuant to an effective shelf registration statement on Form S-3 (No. 333-250072) previously filed with the U.S. Securities and Exchange Commission (the "SEC") and declared effective by the SEC on November 23, 2020. A prospectus supplement and accompanying prospectus relating to the offering have been filed with the SEC and are available on the SEC’s web site at www.sec.gov. Copies of the prospectus supplement and accompanying prospectus may be obtained from Raymond James & Associates, Inc., Attention: Equity Syndicate, 880 Carillon Parkway, St. Petersburg, Florida 33716, by telephone at (800) 248-8863 or by e-mail at [email protected].

On January 28, 2021 The Board of Directors of PerkinElmer, Inc. (NYSE: PKI), reported a regular quarterly dividend of $0.07 per share of common stock January 28, 2021 (Press release, PerkinElmer, JAN 28, 2021, View Source [SID1234574374]). This dividend is payable on May 7, 2021 to all shareholders of record at the close of business on April 16, 2021.

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On January 28, 2021 Evelo Biosciences, Inc. (Nasdaq: EVLO) ("Evelo"), a clinical stage biotechnology company developing a new modality of orally delivered medicines, reported that it intends to offer and sell, subject to market and other conditions, $50 million of its common stock in an underwritten public offering (Press release, Evelo Biosciences, JAN 28, 2021, View Source [SID1234574373]). Evelo expects to grant the underwriters a 30-day option, solely to cover over-allotments, if any, to purchase up to an additional $7.5 million of its common stock. There can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering. All of the shares in the proposed offering are to be sold by Evelo.

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Morgan Stanley, Cowen and BMO Capital Markets are acting as joint book-running managers for the offering.

Evelo intends to use the net proceeds from the offering, in addition to its existing cash resources, for the following purposes: (i) continue the development of EDP1815 in a Phase 2 trial in psoriasis and initiate a Phase 2 trial of EDP1815 in atopic dermatitis; (ii) prepare to advance EDP1815 in multiple Phase 3 trials in psoriasis and atopic dermatitis, upon receipt of positive Phase 2 data; (iii) continue the Phase 2 and Phase 2/3 clinical trials of EDP1815 for the treatment of hyperinflammation caused by SARs-CoV-2; (iv) advance EDP1867 in a Phase 1b trial in atopic dermatitis; (v) progress its first bacterial extracellular vesicle product candidates into the clinic, including EDP2939 for inflammation and EDP1908 for oncology; (vi) other research and development activities for additional product candidates, including advancing additional oral product candidates through preclinical development across therapeutic areas; and (vii) the remainder, if any, for working capital and other general corporate purposes.

A registration statement relating to the securities being sold in the offering has been declared effective by the Securities and Exchange Commission. The securities will be offered only by means of a prospectus supplement and accompanying prospectus forming a part of the effective registration statement. A preliminary prospectus supplement related to the offering will be filed with the SEC and will be available on the SEC’s website located at www.sec.gov. Copies of the preliminary prospectus supplement and the accompanying prospectus relating to the securities being offered may also be obtained, when available, from: Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014; or Cowen and Company, LLC, c/o Broadridge Financial Services, 1155 Long Island Avenue, Edgewood, NY 11717, Attention: Prospectus Department, or by telephone at (833) 297-2926, or by email at [email protected].

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.