Summary of thesis: This study explores the dynamics of exit strategies in the biotechnology industry by examining the connections between exit types and the operations.

Background: The biotechnology sector relies heavily on substantial investments to bridge the gap between early-stage research and market-ready products. Understanding exit strategies is crucial for both investors and companies in navigating the financial and operational challenges of this industry.

Purpose: The purpose of this study is to examine the impact of different exit strategies on the funding and valuation of biotechnology companies. It aims to provide insights into how various exit types influence the financial and operational outcomes of companies in the biotech sector.

Method: The study utilizes data from the Refinitiv Eikon database, encompassing 1308 observations and 79 variables over a ten-year period from 2014 to 2024. The research employs cross-tabulation analysis and multiple linear regression to explore the relationships between exit types and the activities of companies.

Results and Analysis: The results indicate a considerable, though not always strong, correlation between exit categories and company activity. The regression models identify variables that significantly impact the total funding and rank value of exit companies. Total funding is positively influenced by the timing of exit type post-round disclosures and purchase price, while there is a strong negative correlation with M&A transaction value. Rank value is significantly predicted by earnout value and the number of transactions with M&A deal value.

Conclusions: The findings offer valuable insights into the dynamics of exit strategies and their financial outcomes in the biotechnology sector. These insights are relevant for investors and industry participants, emphasizing the importance of strategic planning and timing in exit events to maximize value and investment returns.

Recommendations for Future Research: Future research could expand the dataset to include a wider range of biotechnology companies and exit events. Additionally, incorporating qualitative research techniques and considering other influencing factors could provide a broader understanding of exit strategies and financial outcomes in the biotechnology industry.