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Monday, May 21, 2012

Good news, bad news for Europe's molecular future

This week's BioCentury has an interesting analysis of European biotech - both public and private. A tidbit worth amplifying: (All figures from BioCentury.)

-Good news: the number of private European biotech companies with clinical activities is higher than ever, up 8% in 2011 to 235 companies. These companies are likely to need total financing to support clinical development of $5.7B through 2014.

-Europe's private biotechs raised $1.2B in new capital in 2011.

Bad news: given the demand for funding to support onward development, and the likely supply of capital, there's an approximately $1B funding gap between now and 2014. In addition, public European biotech's have an annual capital appetite of approximately $1.8B.


European biotech's tend to have more readily available government support/financing, but given the financial crisis in Europe, I'd say that it's time to get your checkbooks out, Big Pharma. (At least it should be a buyers market.)


A more dim view might be that there's going to be billions worth of headcount reductions in Europe's biotech's.

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