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Record levels of dry powder and a fierce influx of nontraditional investors into the venture ecosystem have buoyed VC-backed company valuations to record heights in the second quarter of this year. PitchBook’s latest US VC Valuations Report examines how startup valuations across the venture lifecycle and sectors have changed in 2021. Among the report's findings is an observation that exit valuations grew at a decade-record rate, with median acquisition and public listings step-ups of 2.2x and 1.7x, respectively, from their last private market values.

Given volumes in the first half of this year, there is little doubt that 2021 will shape up to be the most active year in history for private financing activity in the life sciences sector.

For much of the past year, efforts by biopharma companies to rein in the COVID-19 pandemic have dominated the news coming out of the health care sector. The industry’s response – developing vaccines and treatments for the novel coronavirus in less than a year – is one for the record books. But as the end of the pandemic comes into sight, we believe health care’s achievements are only getting started. Last year, the U.S. Food and Drug Administration (FDA) approved 52 novel drugs, excluding medicines for COVID-19. That sum is not far from the 2018 record of 59 and occurred despite lockdown measures that closed labs and slowed drug-manufacturing site inspections At the same time, some of the first COVID-19 vaccines to be granted emergency use authorization were based on advance drug modalities that previously had never moved beyond the research lab.

Torreya, a leading global investment banking boutique providing mergers and acquisitions, capital markets, and licensing advisory services to life sciences companies, today released a report sharing broad optimism for the pharmaceutical sector in 2021. They analyze recent market and political factors to predict strong markets for drug sales, private investment, and vertical M&A activities.

An update from Torreya highlighting the unprecedented level of capital raised for new healthcare venture capital funds. They also report an uptick in biotech M&A activity in Q3 2020 following a decline in the first half of the year due to COVID-19.