Venture-capital is pouring into health care. Here's where the dollars are going.

Health care IPOs accounted for 50% of venture-backed IPO activity in Q2

More than $13 billion in venture capital poured into the economy in the second quarter of 2014, and about $2.7 billion was invested in 161 deals across the health care sector, according to a new report by CB Insights.

All told, health care IPOs accounted for nearly 50% of venture-backed IPO activity in the second quarter.

According to MedCity News, some of the largest IPOs of the quarter included:

  • Adeptus Health, the parent company of the nation's largest freestanding ED network;
  • Kite Pharma, which focuses on developing therapies for cancer care, raised $106 million in its public debut; and
  • ZS Pharma, which is developing new treatments for kidney, cardiovascular, liver, and metabolic disorders and is expected to raise $107 million.Toolkit

The largest health care deals inked were for growth-stage companies, according to MedCity News. For instance, Intarcia Therapeutics raised $200 million to develop its Phase 3 drug to treat individuals with longstanding Type 2 diabetes. In addition, population health company Alignment Healthcare raised $125 million and gene therapy company Spark Therapeutics raised $73 million in a Series B funding round.

Why health systems are launching venture capital funds

In total, Series B deals rose to 30% during the second quarter, led by Avalanche Biotechnologies ($55 million), Principia Biopharma ($50 million), and Spark. In addition, Series D funding rose to 15% during the second quarter, compared with 8% during quarter one (Baum, MedCity News, 7/10)


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