Biotech is alive despite temporary difficulties
Biotech companies must adapt to any level of fundingWeekly Pharmacy www.apteka.ua according to the materials nasdaq.com:
Global Biotech Must Adapt Strategies For Harsher Times
Ernst&Young has recently published a report Beyond Borders: global biotechnology report 2011, dedicated to global biotechnologies.
It reports that, despite a significant increase in investment in the global biotechnology industry, this sector is under financial pressure, which may lead to a change in the established R&D model.
"Now the gap is growing between large, universally recognized companies and those that are just beginning to develop. Access to capital is still limited for them," said Glen Giovannetti, head of Global Biotechnology at Ernst & Young.
In 2010, the net total income of biotech centers located in Australia, Canada, Europe and the USA amounted to $4.7 billion. Thus exceeding the previous year's figure by 30%.
Pharmaceutical companies in Canada, Europe and the USA have increased the level of financing in this area to $ 25 billion per year. At the same time, 82.6% of investments were received by 20% of pharmaceutical companies. In 2009 they also received 78.5% of the capital.
Despite a significant reduction in advance payments from partners (in 2010 it decreased by 37% and amounted to $ 3.1 billion), the total value of strategic alliances in the field of biotechnology amounted to more than $ 40 billion.
While developed companies will be able to focus on their main goal of creating new drugs at the expense of internal financial resources, young companies are forced to attract external sources of funding to conduct research, which is associated with a certain risk.
G. Giovanetti also noted that, despite the decrease in funding, companies should work more efficiently even in conditions when the process of drug discovery and development has become longer, more expensive and risky.
He suggested looking for a source of funding for research at their early stages by convincing investors, buyers and regulators of the uniqueness, as well as the need for further development of their drug.
Portal "Eternal youth" http://vechnayamolodost.ru21.06.2011