A biotechnology startup called Kypha recently raised $5.46 million, according to a filing with the Securities and Exchange Commission. The money is part of a larger $7.85 million equity offering. The company did not specify the reason for the financing.
Kypha is located in the Cortex Innovation Community in Saint Louis, Missouri. It is developing inflammation and immune diagnostics to improve the way human health is monitored and treated in patients.
Previous investors in the startup include the Missouri Technology Corporation, Biogenerator, and Arsenal Capital Management.
Kypha is on its way to launch an inflammation monitoring tool called Comp Act. The device will monitor inflammation quickly and accurately. The tablet-like device is portable and provides results in real time. It can also enable people to test disease activity at home.
Small-cap biopharmaceutical firms and biotech startups, like Kypha, are attracting the attention of investors and even large pharmaceutical companies. Venture capital (VC) firms are heavily investing in biotech companies because they foresee a bright future for the industry. The big pharma companies, on the other hand, are keen to acquire biotechnology firms to be able to tap into their research.
The driving force behind their interest is the same: Biotech companies are launching ground-breaking technologies and tools that are unique and patentable. This makes the industry an attractive opportunity for both investors and buyers.
Some stats about the biotech and biopharmaceutical industry
Biopharmaceutical companies saw 37% more VC funding during the first quarter of 2018. Companies labeled solely as “biotech” gleaned $1.922 billion, nearly half of total VC biopharma financing (48%).
In terms of biotech merger and acquisition (M&A) activity, 2018 is already off to an explosive start. Companies have signed deals worth $25 billion with only a few months into 2018. To put this growth into perspective, the total amount spent on biotech M&A deal was $50 billion in 2017.
The recent M&A deals made in 2018 include the acquisition of Juno Therapeutics for $9 billion by Celgene. Another pharmaceutical giant, Sanofi, is acquiring Bioverativ for $11.6 billion and Ablynx for $4.8 billion.
More deals are expected to follow as biotech companies continue to develop innovative products, with some analysts predicting that biotech M&A deals will reach an all-time high in 2018.