Local Tech Wire

RESEARCH TRIANGLE PARK, N.C. – Frustrated and longtime venture capital backers of biotech companies are exploring another means of an exit beyond a stock offering or an out0right sale.

The trend to watch is public biotechs merging with private ones, reports Venture Capital Dispatch at the Wall Street Journal.

Citing a recent deal between publicly held Evotec AG and DeveloGen AG, VC Dispatch notes:

“Venture firms would like to sell companies for a large upfront sum, but that’s difficult to do when acquirers have little competition from the public markets. Mostly, buyers are paying modest amounts initially and tying the rest of the deal’s value to milestones. Given the number of biotechs for sale, even those agreements are hard to come by, which is why biotech-biotech mergers are an option more venture firms are likely to explore.”

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