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
|SOURCE Ernst & Young|
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