Todd Trattner and Ryan Murr of Gibson Dunn and Doug Prescott of TD Cowen hosted a Life Sciences 2025 Outlook: Royalty Finance webcast on Wednesday, March 12, in which they provided an integrated outlook on royalty finance in the life sciences industry, identifying trends and uncertainties that will shape the year ahead. Key takeaways include:
- The robust demand for royalty assets seen over the last five years is expected to continue in 2025, fueled by increased licensing activity in 2024.
- The data from Gibson and Cowen suggest synthetic royalty financings have been increasing at a higher rate than traditional royalty financings, as biotechs seek funding at earlier stages.
- Therapeutic areas such as ADCs and gene therapies are expected to attract substantial interest from investors
- Challenges to the royalty deal environment in 2025 include: interest rates; regulatory uncertainty; the strength of equity capital markets; and geopolitics.
Please visit https://www.gibsondunn.com/webcast-life-sciences-2025-outlook-webcast-series-royalty-finance/ for a recording of the webcast as well as a copy of the slides.