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WEEK ENDING DECEMBER 15, 2023
  • US stocks had another strong week after the Fed signaled that they would cut rates several times next year
  • ADCs continue to have a very strong year in M&A/licensing deals as Bristol Myers Squibb paid SystImmune $800.0M upfront for a Phase 2 ADC solid tumor candidate as part of a licensing deal worth up to $8.4B
  • The healthcare venture markets had a busy week relative to Q4 2023 to-date, raising an aggregate $718.8M
Our healthcare market update is led by Back Bay Life Science Advisors' Andrew Davis, Kyle Mak, Eugene Yoon, Vasilios Kofitsas and Greg Benning. Have questions or comments? Please be in touch.

MARKETS OVERVIEW
The major indices ticked more than 2% in the wake of the Federal Reserve’s policy meeting:
  • The S&P 500 closed 2.5% higher and the NASDAQ Composite added 2.9%, both scoring their seventh-straight winning week 
  • The benchmark 10-year Treasury yield fell 31.7 basis points this week, its largest one-week decline since November 2022; in addition, the 30-year Treasury yield finished Friday with its biggest weekly decline in more than a year, as government debt rallied on the prospect of rate cuts in 2024 by the Federal Reserve 
The Biotechnology and Pharmaceutical indices both finished in the green, advancing 6.1% and 1.7%, respectively:
  • On Friday, Arcutis Biotherapeutics’ roflumilast—now approved in both cream and foam form under the brand name Zoryve—passed muster and FDA approval with regulators to treat seborrheic dermatitis in patients ages 9 and older in the United States
  • Bluebird bio will be offering an outcomes-based framework for sickle-cell gene therapy Lyfgenia that tracks treatment results for three years and offers rebates if a patient is hospitalized because of a painful episode of vaso-occlusion, which is a common complication of SCD

EQUITIES MARKETS 
IPO Markets 
  • Fractyl Health, developing procedural and gene therapies for type 2 diabetes and obesity, filed their S-1 to go public 
  • The IPO queue continues to grow with 25 companies having filed S-1’s this year but have yet to be listed 
Source: CapIQ
Follow-On Offerings 
With total proceeds raised quarter-to-date exceeding that of Q3, this past week had two larger follow-on offerings :
  • Syndax Pharmaceuticals announced the pricing of a $200M follow on offering to continue development of its oncology pipeline 
  • Ocular Therapeutix announced the pricing of a $100M offering to continue development, and commercialization of therapies for diseases and conditions of the eye using its bioresorbable hydrogel-based formulation technology 

M&A/LICENSING 

VENTURE FINANCING 
Sources: Pitchbook, Biomedtracker, and CapIQ
About the DNB//Back Bay Healthcare Partnership

From private and emerging public life science and healthcare companies seeking partnering, licensing, and M&A opportunities to listing and executing on US and Nordic exchanges to consolidators seeking and executing acquisitions and other growth strategies, DNB//Back Bay provides financial and strategic guidance on growth opportunities across sector and stage.

Our healthcare and banking teams span the globe and have worked across every stage and sector of healthcare development.  

Connect with the DNB//Back Bay Partnership.
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Back Bay Life Science Advisory LLC is broker-dealer registered with the Securities and Exchange Commission and a member of the Financial Industry Regulatory Authority, Inc.  Back Bay Life Science Advisory LLC is a wholly owned subsidiary of Back Bay Life Science Advisors, LLC. Securities products and services are offered in the U.S. through Back Bay Life Science Advisory, LLC. 

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