Private equity and venture capital deal value in the global biotechnology sector declined to a four-year low in 2023, according to S&P Global Market Intelligence data.
Aggregate transaction value fell by 31.94% year over year to $18.08 billion, the lowest annual number since at least 2019.
The number of deals was 772 compared to 974 deals in 2022.
On a quarterly basis, investment in the sector by private equity and venture capital reached $3.84 billion through 179 transactions in the fourth quarter of 2023, marking a decrease from the $5.17 billion raised through 229 deals during the same period in 2022.
Fourth-quarter totals were the lowest quarterly result since first quarter 2020, the data shows.
Biotech companies in the US and Canada raised the largest amount globally, accounting for 60.34% of total value. Asia-Pacific and Europe pulled in 19.6% and 18.2%, respectively.
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Largest deals
The top 10 biotechnology deals in 2023 were dominated by the United States and Canada.
Topping the list was the funding round of ElevateBio LLC, which raised $401 million in an equity round of funding led by AyurMaya Capital Management Fund LP, managed by existing investor Matrix Capital Management Co. LP.
The second-largest deal was the $300 million funding round of ReNAgade Therapeutics Management Inc. The round was led by BioImpact Capital LLC and F2 Capital Ltd.
Despite the down year for biotech deals, in 2023 the sector attracted the most private capital among other healthcare subsectors with 24.6% of the total deal value.
