What is the state of the biotechnology industry?
To find out where the it stands and what strategies you need to survive, read Ernst & Young’s 25th annual industry report, Beyond borders: global biotechnology report 2011, that was released during a super session at the 2011 BIO International Convention.
What were the industry’s profits last year? What kind of companies received funding? How should you engage the regulators? What new competencies do you need to learn?
Here are five facts from the report that you should know:
- Companies in the industry’s established biotech centers had a record-breaking aggregate net profit of $4.7 billion, a 30 percent increase from the previous year.
- Companies in Canada, Europe and the U.S. raised $25 billion in 2010 – returning to pre-financial crisis levels.
- In the U.S., large debt financings by mature companies grew by 150 percent over 2009. On the other hand, there was a 20 percent decline in the amount of “innovation capital” for the sector, defined as total funding minus large debt financings.
- Over 82 percent of funding went to just 20 percent of U.S. companies, up from 78 percent in 2009. The bottom 20 percent of companies raised 0.4 percent of funds, down from 0.6 percent in 2009.
- Merger and acquisitions involving European or U.S. biotech firms dropped sharply from 58 deals in 2009 to 45 deals in 2010, while the aggregate value of these transactions remained relatively flat.