In This Report

• M&A Activity

• Top Headlines

• Dynamk Capital Insights

• VC Investments

• Recommended Reads

Deal activity has remained steady wit the previous two quarters. A majority of IPOs were completed on the Shanghai Stock Exchange including MGI Tech, a manufacturer of clinical high-throughput gene sequencers, for $3.6B in September.

Top Headlines

Sartorius continues its cell culture media interests with $500M Albumedix acquisition

The planned acquisition announced on August 9th bolsters Sartorius's expanding cell culture media interests with Albumedix's albumin-based solutions. Albumin, an animal-free media supplement, is a key additive in the manufacturing of vaccines, cell therapies, and viral therapies.
Press Release

Cadence Completes ~$500M Acquisition of OpenEye Scientific

The addition of OpenEye’s technologies and team accelerates Cadenence's strategy by extending its computational software core competency to molecular modeling and simulation.  OpenEye has pioneered physics-based approaches and cloud-native software, Its products are used by 19 of the top 20 global pharmaceutical companies.

Press Release

Dynamk Capital Insights

It was a slow summer for LSI venture activity. Q3 saw a decrease in deal activity and a significant slowdown in funding amount compared to the first two quarters of 2022. There were fewer large late-stage deals being completed, with no $100M+ deals in the quarter. We believe most of the funding of the last few quarters has gone towards supporting existing companies. Startups are being pushed to focus on core fundamentals and drive toward more sustainable business models.

Venture & Growth Investing in Life Science Industrials

Venture deal-making decreased to its lowest level since Q1 in 2020. While there was a sharp decrease in the number of deals, there was an even sharper decrease in the amount of capital deployed. There is a continued sense of VCs holding out and focusing on their existing portfolio companies before investing in new deals.

Life Science Industrials Funding

There was a large reduction in the amount being deployed at the later stage. We believe this is in large part due to many existing companies having raised in the last two quarters to weather the anticipated market slow down. The early stage also saw a big reduction in amount deployed, at roughly 30% the amount of the previous quarter.

DYNAMK RECOMMENDED READS

Business

• Cytiva / Bayer multi-year partnership to develop "first modular end-to-end manufacturing platform for cell therapies"

• RoosterBio and AGC Biologics announce collaboration to accelerate manufacturing of cell and exosome therapies

• Ginkgo to acquire Zymergen to better enable their cell programming platform

• Danaher dismisses biotech funding woes stating “Our business is driven by what’s happening in Phase III"

• Sartorius confirms in its H1 report it has $10B in funds set aside for M&A

• Forge Biologics: Series C, $90M, End-to-end gene therapy manufacturing platform

Manufacturing

• Wacker invest $102M in mRNA capacity in Halle, Germany

• Thermo Fisher adds 300k square feet of gene therapy manufacturing capabilities with $180M Plainville, Massachusetts plant

• CDMO TFBS to grow viral vectors in Taiwan with help from Univercells

Research and Development

• NIIMBL’s Project Call 5.2 looks to address bottlenecks in biomanufacturing

*Note: reported transaction amounts and timing are subject to change dependent on final closings.