Insights & Commentary

Equity Capital Markets

ECM Monthly Life Sciences Recap

Jun 30 2017

Broader Markets Commentary

  • Each of the three major U.S. indices had a strong finish to 1H’17, with the Nasdaq posting its biggest 1H gain since 2009, and the Dow and S&P posting their biggest 1H gains since 2013
  • The Dow and S&P finished June at record highs, although the Nasdaq experienced its worst month since October due to decreasing investor confidence in tech stocks
  • The Fed raised rates from 1% to 1.25% in June, receiving mixed reactions from investors
    • After Fed Chair Yellen’s comments on “somewhat rich” asset valuations, U.S. equities fell the most in six weeks as this may reflect greater risk-taking amongst investors

Biotech/Spec. Pharma Market Commentary

  • The XBI and NBI posted gains of 14.0% and 8.5% respectively in June, the strongest performance for each index since July 2016
    • The XBI reached its highest level since the biotech boom of July 2015, supported by several late-stage clinical data readouts and heightened M&A speculation
    • Investor enthusiasm was strengthened after FDA Commissioner Gottlieb stated that “the introduction of new, effective therapies is the best way to reduce overall healthcare costs” in relation to revising the drug development and regulation processes
  • Life Sciences equity issuance volume has remained strong in 2017 YTD as deals continue to receive strong support from new and existing investors
    • 16 equity deals priced this month, raising a combined $2.1B*
    • Bluebird bio priced the largest biotech follow-on of the year in June, raising $460mm in proceeds


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