Ernst & Young’s annual biotech report shows strong performance by major players but a challenging environment for the rest of the industry and an urgent need to focus on demonstrating value.
The global biotechnology industry continued on a path of recovery in 2012 as public companies in the sector achieved top- and bottom-line growth for the third straight year even while R&D spending remained under pressure at many companies. However, new survey research in Ernst & Young’s 27th annual biotechnology industry report Beyond borders: matters of evidenceindicates an “implementation gap” at most small- to mid-size companies when it comes to gathering evidence to demonstrate the value of products under development. This gap has implications on the future ability of these companies to raise capital, obtain attractive deal valuations and be successfully reimbursed for their drugs upon approval.
Tags: pharma, biotech companies, capital, strategic focus, “value pathway”, United States, Europe, M&A
Source: EuropaBio, 2013-05-03.