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MoFo BioMeter Reveals Drop in Q1 Up-Front Licensing Deal Value

According to the most recent edition of MoFo BioMeter, buyers of promising drug treatments and medical devices are pursuing licensing deals in early stages of the biotech life cycle more than ever.

The average value of all life sciences transactions reported in the first quarter of 2014 was $15.9 million, a more than 50 percent drop from the $33.9 million for all of 2013. The steep decline reflects a preponderance of early-stage deals, a trend that has been noted by BioMeter for several quarters.

The relatively low value is a function of both the relatively high percent of early stage deals and the atypically low values for transactions involving more advanced products. Pre-clinical/discovery transactions represented approximately 70 percent of all reported licensing deals in the first three months of the year.

Read the report for additional analysis and insight into Q1 2014 here.

BioMeter measures the health of the biotech sector by averaging licensing, development, and collaboration payments across the industry. The report is authored by Washington, D.C. and Palo Alto corporate partner Stephen Thau, San Francisco technology transactions associate Aaron Schohn and San Diego technology transactions associate Anelia Delcheva of Morrison & Foerster LLP.