Features Partner Sites Information LinkXpress
Sign In
Advertise with Us
RANDOX LABORATORIES

Events

06 Jun 2016 - 09 Jun 2016
22 Jun 2016 - 24 Jun 2016
04 Jul 2016 - 06 Jul 2016

A Surge in IPOs Revitalize Investments for the Global Pharma and Biotech

By BiotechDaily International staff writers
Posted on 16 Jun 2014
Print article
Anti-infective drugs, oncology, and pharmaceutical contract laboratories attract the most investment up to now.

The intensified private equity and venture capital (PEVC) deal activity in the global healthcare industry during the recession years, 2008–2010, witnessed a waning post-2010. However, the decline in deals was not uniform among the constituent sectors, with the biotechnology, pharmaceutical, and healthcare equipment sectors experiencing a much sharper decline in investor interest than the healthcare technology and provider segments. Investors began to gamble on providers based with the conviction they can provide faster and safer returns than the pharmaceutical and biotechnology space, which is ridden with regulatory challenges and patent expiries.

A new market analysis from Frost & Sullivan’s (Mountain, View, CA, USA), an international growth consultancy firm, revealed the total number of PEVC transactions in the pharmaceutical and biotechnology industry decreased from 1063 in 2010 to 480 in 2013. Although the returns from the pharmaceutical and biotechnology industry have been declining, they are better compared to the performance of other industries.

“PE deals in the pharmaceutical sector have been relatively stable over the post-recession period whereas activity in the biotechnology segment began to decrease after reaching its peak in 2010, due to the uncertainty caused by healthcare reform in the US, long incubation periods, and delayed approvals,” said Frost & Sullivan financial analyst Dr. E. Saneesh. “VC deals across both these sectors also started to plummet from 2011 due to risks associated with regulatory uncertainty, long gestation periods, and increased cost of production.”

However, the strong rebirth of initial public offerings (IPOs) in 2013 indicates a positive outlook for investment in the pharmaceutical and biotechnology industry. The number of IPOs in the global biotechnology sector surged by 100% between 2012 and 2013, primarily on account of the 26 IPOs that took place in the United States. IPOs in the pharmaceutical industry also climbed with 11 deals in 2013, after the volume of IPOs declined to nearly one-sixth of the sector’s value between 2011 and 2012.

As a result of the surge in IPOs, exit opportunities are expected to increase for investors. The trend will be further fuelled by the anticipated growth of corporate investor-backed IPOs. “PEVC investors in the global pharmaceutical and biotechnology industry have demonstrated maximum interest in oncology drugs, followed by anti-infective drugs and pharmaceutical contract laboratories,” stated Dr. Saneesh. “They have also concluded the maximum pharmaceutical- and biotechnology-related PEVC deals in the US and are expected to continue to do so in the forthcoming years. Industry players most aligned with these trends will be well positioned to obtain financial support from PEVC investors.”

Related Links:

Frost & Sullivan



Print article

Channels

Genomics/Proteomics

view channel
Image: A dark field photomicrograph showing the spirochete bacterium Borrelia burgdorferi, the pathogen responsible for causing Lyme disease (Photo courtesy of the CDC).

Statins May Help Block Transmission of Lyme Disease

A recent study found that treatment with cholesterol-lowering statins reduced the number of Borrelia burgdorferi bacteria in rodents, which helped to block transmission of Lyme disease. Lyme disease... Read more

Drug Discovery

view channel

Experimental Small-Molecule Anticancer Drug Blocks RAS-binding Domains

The experimental small-molecule anticancer drug rigosertib was shown to block tumor growth by acting as an RAS-mimetic and interacting with the RAS binding domains of RAF kinases, resulting in their inability to bind to RAS, which inhibited the RAS-RAF-MEK pathway. Oncogenic activation of RAS genes due to point mutations... Read more

Biochemistry

view channel
Image: A space-filling model of the anticonvulsant drug carbamazepine (Photo courtesy of Wikimedia Commons).

Wastewater May Contaminate Crops with Potentially Dangerous Pharmaceuticals

Reclaimed wastewater used to irrigate crops is contaminated with pharmaceutical residues that can be detected in the urine of those who consumed such produce. Investigators at the Hebrew University... Read more

Lab Technologies

view channel

Huge Modifiable Biomedical Database to Be Available on the Wikidata Site

Genome researchers are exploiting the power of the open Internet community Wikipedia database to create a comprehensive resource for geneticists, molecular biologists, and other interested life scientists. While efficiency in generating scientific data improves almost daily, applying meaningful relationships between... Read more
Copyright © 2000-2016 Globetech Media. All rights reserved.