Tag Archives: Industry Analysis

2010 Biotech Stock Performance

How did biotech stocks perform in 2010? It was a good year for the two most closely followed biotech stock indices, the NBI and BTK, as each outperformed the S&P 500 in 2010. However, in terms of breadth, only 49% of companies posted a gain for 2010 as seen in the first chart below. The 92 companies that started the year in the valuation range of $1M-$50M had a median return of -8%, a reversal Read More >

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IPO UPDATE – JANUARY 4th, 2011

In 2010 we saw the return of the Biotech IPO. In the US, 17 biotech companies went public, up from 3 in 2009, and only 1 in 2008. However, almost all of them had to accept a lower price than was sought in the initial filing. The average downward adjustment to the amount raised was 25%. The median and mean amount raised in the US in 2010 was $53M and $84M, respectively. Since the IPO Read More >

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How Profitable is the Biotech Drug Development Sector?

Q: How many public biotechnology companies focused on pursuing drug development are profitable? A: Less than 10% Of 225 public biotech companies in the drug development business, only 17 are profitable (7.5%) based on 2009 Net Income. The profitable companies tend to be those with three or more products: Only 1.3% have 1 product AND are profitable (3 of 225) Only 0.9% have 2 products AND make a profit (2 of 225) Only 5.3% have Read More >

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Update – Analysis of Therapeutic Discovery Project Awards

Here are the results from our recent analysis of the Therapeutic Discovery Project. (For additional background and links on the TDP, please see our previous post from Nov 3rd, 2010.) The 4,606 projects that were awarded a TDP grant or credit went to 2,923 companies in 47 states. That averages to 1.6 projects per company. A more detailed analysis reveals that the majority (72%) of the companies received one project credit or grant, and 28% Read More >

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Clinical Trial Success Rates – Recent Study from Tufts

Joseph DiMasi and his team at Tufts University published a paper earlier this year in Nature’s Clinical Pharmacology & Therapeutics journal that contains some interesting data on clinical trial success rates. The published data are relevant to biotech investors and business development professionals in that published industry data for clinical outcomes can make a significant difference on the overall valuation of a company. These probabilities can also have a meaningful impact on the ability to Read More >

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