In a Law360 article, life sciences and health care industry group co-chair Marc Rubenstein and mergers & acquisitions chair Chris Comeau discussed the ‘sober’ outlook for dealmaking and life sciences initial public offerings in the first half of 2023 upon returning from the J.P. Morgan Healthcare Conference.
Marc noted that public companies are reluctant to pursue follow-on offerings to dilute their stock if their shares are trading at low levels, which limits their ability to raise significant capital. He explained that life sciences companies are exploring alternatives such as royalty financing, by which a company can fund product launches or research and development in exchange for a portion of its future revenue.
Chris remarked that from a science perspective, it is an exciting time to be doing drug discovery and pursuing scientific breakthroughs, including the use of artificial intelligence to discover new medicines.
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