Global Financial Crisis Making Biotech Business Model Unsustainable, According to Ern...(ew win-win ways of allocating increasi...)

"But these trends will also bring new market pressures -- from a higher bar on reimbursement to new sources of competition. To seize the opportunities in these four drivers, companies need to be proactive," says Giovannetti. "Firms should understand how these trends impact them, prepare for them, and where possible, help shape them."

Key regional findings

United States

• Revenues of US public biotechs grew by 8.4% in 2008, down from 11.3% in 2007.
• The US publicly traded industry posted an aggregate net profit for the first time -- US$0.4 billion.
• Despite the crisis, venture capital raised in the US reached US$4.4 billion in 2008 -- the second-highest total in history, behind only the record US$5.5 billion raised in 2007.

Europe

• Revenues of European public biotechs increased 17% to euro 11.2 billion.
• Capital raised by European biotechs fell from euro 5.5 billion in 2007 to less than euro 2 billion in 2008.

Asia-Pacific

• Asia-Pacific biotech revenues grew by 25% in 2008, led by strong growth in Australia.
• In Australia, public-equity funding fell to levels not seen since 2002. There were a handful of IPOs in Japan and China and strong private-equity funding growth in India.

About Ernst & Young's Global Biotechnology Center

Today's rapidly changing biotechnology industry is delivering new levels of health, prosperity and sustainability. But it is also facing unpreceden
'/>"/>