The National Venture Capital Association’s MedIC Coalition recently released a report showing U.S. venture capitalists are decreasing their investments in biopharmaceutical and medical device companies, reducing their concentration in prevalent disease areas and shifting investments towards Europe and Asia.
The report, Vital Signs: The Threat to Investment in U.S. Medical Innovation and the Imperative of FDA Reform, strongly indicates that America’s medical innovation economy is in grave danger of losing its primary source of funding, causing serious harm to both U.S. patients and the national economy.
The survey of more than 150 venture capital firms identified FDA regulatory challenges as the most significant factor driving away investment from startup companies that are bringing critical therapies to market. Other factors included reimbursement concerns and an adverse financial environment.
We recently released a comprehensive policy agenda on Unleashing the Promise of Biotechnology to speed life-saving treatments to patients, encourage private investment, and defend our nation’s leading position in the global industry.