APAC enjoying surge in VC funding

Venture capital activity is growing strongly throughout the Asia pacific biomedical and biotech sectors at the same time as the US and Europe suffer sharp declines, according to industry database MedTRACK.

“While [ total ] venture financing deals have dropped steadily since 2006, the number of transactions in the Asia-Pacific region is on pace to rebound by 15 percent in 2010,” said MedTRACK president Sarah Terry.

MedTRACK notes that with 49 VC deals already done in the Asia Pacific this year, the region is well on track to surpassing last year’s total of 53. In contrast, the US and Europe have both seen marked declines.

“Indeed, the number of venture financing transactions in North America and Europe are forecast to drop another 30 percent and 15 percent respectively this year compared to last year, to roughly 350 in North America and 240 in Europe,” Terry said.

Further boosting investor confidence in the Asia Pacific region, MedTRACK reported that companies operating in Asia were on average banking Phase 1 and Phase II royalty rates of around 20 percent, or double current averages in the US and Europe. It noted that while the disparity was not as wide when comparing Phase III royalties, the overall figures augur very well for the 307 APAC companies with products currently in development.