Early-stage Companies Signal New Business Opportunities

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To alert our clients to possible early-stage drug development opportunities, a special “E” icon in the Corporate Finance section of the PharmSource Lead Sheet calls attention to these. This handy icon flags finance leads that involve a company that has just received new funding and is working with an early-stage pipeline (Figure 1). And as we all know, it is a truth universally acknowledged that a relatively new company in possession of a good fortune must be in want of services… services you may provide.

Figure 1: Sample early-stage company with newly received funding, easily identified by the “E” icon

In addition to finding these newly funded early-phase opportunities on the weekly Lead Sheet, you can also easily identify these in the database. Just go to Search for Leads > Status tab > Select Early Phase Drug Company with New Financing – then set a date range and get the search results in a single click.

In general, public information about early-stage companies is scarce. In fact, since February 2015, 9% of the companies we’ve tagged with the “E” icon as early-phase drug development companies don’t have websites, and 71% of those that do have websites lack pipeline details. This really demonstrates how the PharmSource Lead Sheet delivers frequent, genuine early-stage opportunities: these companies now have money and are ready to spend it. And fortunately for you, the volume of such opportunities in the Lead Sheet is trending up (Figure 2).

Figure 2: Growth trend in the number of early-stage companies with new funding

Finance leads tagged with the “E” icon overwhelmingly receive their cash from venture capital funding, 88% to be precise. The other 12% of financings come from government and other grants, milestone payments and private equity. The largest segment of these companies develop oncology drugs, followed by companies that produce Neurology/CNS, Cardiology/Vascular, Immunomodulator and Anti-viral treatments (Figure 3). Although it’s worth noting that if Anti-viral, Anti-bacterial and Anti-infective were combined, this infectious disease category would come in second largest after oncology.

Figure 3: Early-stage companies with financing: by therapeutic area

You can see why it’s worth paying attention to that little “E” icon that pops-up on some finance leads. These leads are rife with opportunities just waiting to happen.

For questions about this feature or any other inquiries regarding the PharmSource Lead Sheet please contact our Account Manager, Blythe Moore, at +1.703.383.4903 ext. 104 | blythe.moore@pharmsource.com.

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Brooke is a Senior Research Analyst at PharmSource, and heads the PharmSource Lead Sheet research team. Prior to joining the company in 2005, Brooke was a Scientific Research Assistant for a biotechnology company in Sydney, Australia. Brooke has a BS degree in Biotechnology with Honours from the University of Newcastle, Australia.

More posts by Brooke Wilson