Going strong, going public. Despite spate of chronic problems and calls for reform, healthcare initial public offerings demonstrate fiscal health

IPOs were popular in healthcare in the past year, and 2008 promises to bring even more. "I think the reason for the interest is investors realize healthcare has been and will continue to be a strong performer in the market," says Ben Rooks, left, of William Blair.

Washington rises: Public financial support for intellectual disability in the United States, 1955–2004

Public financial support for intellectual disability in the United States grew from 2.3 billion in 1955 to 82.6 billion in 2004, and the federal government emerged during this period as the principal provider of such support. Notwithstanding this unprecedented growth in financial support, many inequities persist today in the distribution of financial resources and services across states, communities, families and to individual disabled consumers. Moreover, tens of thousands of persons with intellectual disabilities continue to live in institutions and nursing homes, waiting lists and aging caregivers are growing rapidly, and family support and supported employment programs receive limited funding. Research and training support has declined significantly in comparison to the growing financial commitments for services and income maintenance. To address these and other issues, the author suggests commissioning a new "President's Panel on Intellectual Disability" modeled on President Kennedy's landmark 1961 Panel on Mental Retardation. The new panel would be appointed during the first months of the new presidential administration in 2009 and deliver its report to the President in 2011, commemorating the 50(th) anniversary of the original President's Panel.

The company you keep: spreading effects of financial fraud on investor trust

Investor trust is valuable to health care organizations. Without it, they may face higher capital costs. This study explores recent cases of fraud and the appearance of impropriety by health care organizations, focusing on the manners in which trust was violated, the systems that allowed those violations, and the effects on financial markets. Increases in the incidence and scale of such transgressions may be harbingers of worse times ahead. This article examines how recent events have affected the cost of capital, and what health care organizations can do to avoid being judged by the company they keep.

Early-stage returns?

Contrary to conventional thinking, there are compelling reasons for investors to consider early-stage life science ventures, especially in the context of a maturing biotech business 'ecosystem'.

White Biotechnology: Ready to partner and invest in

It needs three factors to build an industry: market demand, product vision and capital. White biotechnology already produces high volume products such as feed additive amino acids and specialty products like enzymes for enantioselective biocatalysis. It serves large and diverse markets in the nutrition, wellness, pharmaceutical, agricultural and chemical industry. The total volume adds up to $ 50 billion worldwide. In spite of its proven track record, white biotechnology so far did not attract as much capital as red and even green biotechnology. However, the latest finance indicators confirm the continuously growing attractiveness of investment opportunities in white biotechnology. This article discusses white biotechnology's position and potential in the finance market and success factors.

The effect of interest rate derivative transactions on debt savings for not-for-profit health systems

The utilization of interest rate derivative instruments in US for-profit companies has grown exponentially since the early 1980s. International Swaps and Derivatives Association, Inc. (ISDA), reported that the amount of outstanding standard swaps grew by 25 percent during the first six months of 2003. The growth rate of all interest rate derivatives, which includes single-currency interest rate swaps, cross-currency interest rate swaps, and interest rate options, grew by 24 percent during the same period. The total outstanding amount of interest rate derivatives now totals $123.9 trillion compared to $99.9 trillion at the end of 2002 (Dodd, 2003). This explosion in usage is a testament to the efficacy and flexibility of the instruments and the increased appreciation by financial managers of the importance of financial risk management in a volatile interest rate environment.

Trends in biopharmaceutical IPOS: 1996-2005

This study examines the stock market reaction and other financial aspects of all biopharmaceutical firms that had an initial public offering (IPO) between 1996 and 2005. Overall, increases in stock price at the close of the first day averaged 20.9 percent while the stock price of those firms that went public and survived until the end of 2005 stock price increased by only 7.7 percent on average. Sixty-nine percent of the firms that went public during this period were still trading at the end of 2005, with the majority of those de-listed being acquired or merged. Three-fourths of all biopharmaceutical IPOs had venture capital investors. Venture capitalists owned 47.4 percent of all common stock outstanding prior to the IPO on average.

Improved estimates of capital formation in the National Health Expenditure Accounts

The National Health Expenditure Accounts (NHEA) were revised with the release of the 2004 estimates. The largest revision was the incorporation of a more comprehensive measure of investment in medical sector capital. The revision raised total health expenditures' share of gross domestic product (GDP) from 15.4 to 15.8 percent in 2003. The improved measure encompasses investment in moveable equipment and software, as well as expenditures for the construction of structures used by the medical sector.

The innovation process centre stage

London's Olympia 2 was the venue for the first Medical Device Technology Innovation Forum. The event was characterised by dialogue and discussion that explored the key issues involved in delivering clinical need through innovative products to the end user. Highlights of the event are reported here.

Capital: beyond the tried and true

The old standbys remain by far the financing vehicles of choice for hospitals. But other, less traditional methods are gaining a foothold as not-for-profit hospitals look elsewhere--usually the corporate world--for successful precedents that can help fund big projects without leaving a bad financial aftertaste.

Hans Küpper discusses science and venture capital

Hans Küpper has over 30 years of experience in the biotechnology industry in areas from research to R&D management, technology assessment and business acquisitions. He received his PhD in 1974 from the University of Heidelberg. After additional academic research at the Massachusetts Institute of Technology in the USA and at the University of Heidelberg, Germany, he joined Biogen in 1980. Here, he held various R&D positions, the last of which was Assistant Research Director. In 1985, he joined Behringwerke AG, Marburg, to build up and head the company's Molecular Biology Department and thereafter became Head of R&D of the Immunology/Oncology Business Unit. In 1999 he joined Global Life Science Ventures at their Munich office. Dr Küpper is the author of numerous publications and patents/applications and has also served as a consultant to the Pharmaceutical Industry and the European Commission. He is a board member of several early stage companies in the life sciences.