The global biotechnology industry reached a new plateau in 2014, creating new records on virtually every major financial metric, including revenues, profitability and capital generated. These positive performance signals, mixed with several high profile product successes and a solid year for new drug approvals, drove the industry’s total market capitalization above the US$1t threshold for the first time in its history. These and various discoveries were released on June 15 in Beyond borders.
Net income gums 231% back in 2014 to a historic high of US$14.9b R&D money surged 20% as businesses in the US and Europe invested in their pipelines. Firms in the US and European companies go public in red-hot IPO market.
Glen Giovannetti, EY’s Global Life Sciences Leader, states
“The global biotechnology industry’s outstanding performance and maturation are driving optimism that a new age of biotech innovation will create long-term value for companies, their investors and patients. Investors are bullish on the future, investing historic amounts in the smaller players that will drive future breakthroughs.”
However, success can engender its own obstacles. “Unprecedented product approvals have also brought unprecedented pricing pressures,” stated Giovannetti. “Companies will need to continually demonstrate how their products deliver value and contribute to the overall sustainability of health care systems.”