Top 10 Things To Learn About Biotech From Ernest & Young’s Global Biotechnology Report 2012

  1. R & D needs to be reinvigorated by organisations adopting a more open approach and greater readiness to embrace ideas which originated in others people’s labs.
  2. Big pharma’s real capacity (their ‘firepower’) has declined by 30% between 2006 and 2011 and so the expectation is that will be contributing less and less to biotech innovation as they divert resources to building a presence in emerging markets.
  3. However big pharma do realise that biotech is important to their future, and perhaps they could band together to create a fund to purchase biotech IPOs.
  4. Phase II testing needs to change so that more observation is done allowing hypothesis generation to happen at this stage.
  5. The publically traded biotech companies did well in Australia, Canada, Europe and US last year.
  6. The industry leaders took advantage of low interest rates to raise large sums of debt and used this for acquisitions or stock buy backs.
  7. Biotech continues to be a story of haves and have-nots, with most of the innovation capital being raised by a small number of companies.
  8. The vast majority of last year’s IPOs were priced below the desired range.
  9. In contrast to the US, Europe has not seen financing return to the levels prior to the financial crisis in 2008.
  10. Big pharma has been absent from the largest M&A’s, being the buyer in only 7 out of 57 M&A’s in Europe and the US last year.

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