The State of Biotech - Beyond Borders - 2008/09 - Highlights
If you didnt attend BIO 2009 but are interested in gaining a greater insight into the issues which European and US biotech companies must adjust to, you will find the highlights from an Ernst & Young seminar insightful and informative. The presentation was made at OBN earlier in June by two E&Y senior managers, Chad Whitehead, Partner and member of the Global Biotech Advisory Panel and Ian Oliver, Senior Manager.
They focused on trends in Europe, particularly the UK, and the US, covering improving indicators around M&A and pipeline data, as well as the financing shortfall. And they described a systemic and persistent crisis to which biotech companies must adapt; perhaps requiring something leaner than the generic biotech business model.
Highlights that stood out :
This recession feels different because we dont know when it will end
Previous droughts were caused by investors moving away from biotech; this time its macro economic
Deals in the sector have been strong 08 a record year for alliances and collaborations - $30bn all time high globally
The biotech sector outperformed the market but the gap between large and small companies is widening i.e. revenue producers vs pre-revenue
Sector revenues are up 17% (UK) - Actelion and Shire contributed to this and 12% (US)
Sector losses are down - 70% (UK) and 53% (US)
Mature spin-outs from Pharma are attracting funding
Alliances remain strong - 8.8bn 08 (9.8bn 07)
11 out of 15 deals were discovery rather than late stage
Phase III in neurology and oncology dominate; 23% of which is in the UK
The global future is driven by the demands of an aging population
125 NDAs/BLAs are currently awaiting approval by the FDA if all went through, these could create $60bn revenue by 2012
Alliances will continue to be popular and M&A activity is predicted to continue
Pharma is not buying swathes of distressed companies despite their depressed value in the current market; their BD teams remain very active and miles are being structured to favour the post-commercial stage