Tuesday, May 27, 2008
Los Angeles/Orange County Leads Biotech Fundings, Says Report
The Los Angeles/Orange County area led the nation in overall capital raised in biotechnology, according to a report released last week by Ernst & Young. According to the Ernst & Young, 2008 Beyond Borders report, which analyzes the biotechnology industry, Southern California led the nation in total capital -- including both venture capital and other financing -- raised by biotech related firms for the year. The region is ranked ahead of both the San Francisco Bay Area and New England in terms of capital raised by companies in the area. This is the second straight year where Los Angeles/Orange County led in funding amounts; however, the report noted that debt financings by Amgen significantly bolstered funding numbers in the region. In terms of venture capital only, San Diego was ranked third behind the Bay Area and New England in terms of fundings, with Los Angeles/Orange County a distant fifth. Southern California companies (Optimer Pharmaceuticals, Orexigen Therapeutics, Response Genetics, and Genoptix) represented four of the 22 IPOs in biotechnology during 2007, raising a total of nearly $250M on the public markets.