Record Venture Capital and Heated Deal Environment Propel Global Biotechnology Industry Forwa...( Ernst & Young's 2008 Global Biotechn...)

Ernst & Young's 2008 Global Biotechnology Report reveals robust investment

in the industry; sweeping trends that are transforming the industry

BOSTON, May 20 /PRNewswire/ -- The global biotechnology industry achieved record levels in financing and deal making in 2007, as investors and strategic partners showed strong confidence in the sector amid tightening global financial conditions that will continue to test the industry in 2008. These and other findings were highlighted in Beyond Borders: Global Biotechnology Report 2008, Ernst & Young's annual report on the trends shaping the biotechnology industry, released today.

"In 2007, investors were drawn to the tremendous value of biotech's innovation, with impressive results, as venture financing and deal making reached unprecedented heights," said Glen Giovannetti, Ernst & Young's Global Biotechnology Leader. "To continue its multi-year track record of progress, the industry must meet the current challenges of cooling public equity markets, greater regulatory scrutiny and higher product approval and reimbursement hurdles with fiscal discipline and the creativity and innovation for which it is known."
Key industry findings described in the report include:

-- The global biotechnology industry had a very strong year on the

financing front. Companies in the Americas and Europe raised more than

US$29.9 billion -- a new high excluding the outlier genomics bubble

year of 2000.

-- Venture financing reached an all-time high in 2007 with investment

totaling about US$7.5 billion, fueled by a record total of US$5.5

billion in the US and 72% growth in Canada.

-- Global public biotechnology company revenue rose by 8% in 2007,

crossing the US$80 billion threshold for the first time. Absent the

acquisition of several leading biotech revenue producers by big pharma,

revenue would have increased by about 17% -- i
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