The Cross-Border Biotech Blog

Biotechnology, Health and Business in Canada, the United States and Worldwide

2012 Canadian Healthcare Financings – strong but very selective

Wayne Schnarr - seriousLarge profitable public companies had no problem completing financings, especially those in the seniors housing and long-term care field (the gross proceeds for this category are listed below).

  • Catamaran – $541.8 M (equity)
  • Chartwell Seniors Housing REIT – $339.3 M (equity and convertible debt)
  • Extendicare – $126.5 M (convertible debt)
  • HealthLease Properties REIT – $110.0 M (IPO)
  • Leisureworld Senior Care – $56.4 M (equity)
  • Medical Facilities – $41.8 M (convertible debt)
  • Patheon – $30.0 M (equity)

Some development stage and not yet profitable public companies were able to complete financings over $10 million, a level which allows most of these companies to execute growth strategies and not strictly be in survival mode. The total for these 13 financings was $334.3 million.

  • YM Biosciences – $80.5 M (equity)
  • Novadaq Technologies – $40.3 M (equity)
  • Neptune Bioresources – $34.1 M (equity)
  • Centric Health – $27.50 (convertible debt)
  • Methylgene – $26.1 M (equity)
  • Resverlogix – $25.0 M (debt)
  • Oncolytics Biotech – $21.3 M (equity)
  • Bioniche Life Sciences – $20.0 M (debt)
  • BELLUS Health – $17.3 M (includes plan of arrangement proceeds)
  • Aeterna Zentaris – $16.5 M (equity)
  • Trimel Pharmaceuticals – $13.3 M (equity)
  • TearLab – $12.4 M (equity)
  • Merus Labs – $10.0 M (equity)

A total of $165.2 million was raised through financings less than $10 million each. Some of these financings would have provided only survival funds while some companies with low cash needs may have been able to grow.

The total equity and convertible debt funding raised by development stage companies in 2012 was just slightly lower than in the previous three years, but was almost 60% lower than the 2005-2007 average.

[The data in this post was compiled for the upcoming 2012 Canadian Healthcare Annual Review, co-authored by myself and Ross Marshall, Senior Vice President, The Equicom Group Inc., a wholly-owned subsidiary of TMX Group Inc.]

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