Despite stock market sentiment being relatively subdued for a good part of 2007, Danish biotechnology companies still managed to raise a record DKK 2.6bn (USD 511m) of development cash from the bourse in 2007, writes financial daily newspaper Børsen.
To put the figure into perspective, the corresponding amount of cash raised from the stock market by Danish biotech companies just two years ago was less than DKK 1bn.
Last year saw Exiqon raise DKK 400m (USD 78.6m) from a bourse listing, while a brigade of already-listed Danish biotech firms raised large quantities of fresh development capital from share issues, including Curalogic, Topotarget, Bavarian Nordic, Pharmexa and NeuroSearch.
The robust investment momentum of 2007 will however need to be sustained for a while yet. As Henrik Ernø, director of Danske Bank's corporate finance division, points out: "Until all the companies are generating earnings themselves, there will be a need [for investment cash]. The further companies advance their clinical trials, the more expensive it becomes and the greater the financing requirement."
Henrik Ernø considers that Danish biotech companies will be able to get the development cash they need from the stock market, and draws attention to the growing interest from abroad: "About half of the money raised on the bourse in 2007 came from foreign investors, and a steadily increasing proportion of transactions that take place are as a result of demand from overseas."