Biopharma Investors, Companies Learning To Adjust To Financial Market Realities

When Cycle Will Spin Out Of Downturn Is Anyone’s Guess

 
• By Mandy Jackson
  
Generate a summary of this article
Listen to this article
Beta

Raising money will be difficult for the foreseeable future, so every part of the ecosystem from start-ups to public companies to VC firms is figuring out how to survive until cash is easily accessible again.

Visualization of down global financial markets
In lieu of venture capital or a public offering, dealmaking has become a more attractive funding option • Source: Shutterstock

Biopharmaceutical investors and executives alike conceded during the recent BIO International Convention that the booming financial environment, which peaked in 2020 and 2021 with record levels of venture capital investment and initial public offerings, created too many new drug development start-ups and public companies. Many therapeutics firms shut down as investment in the sector slowed in 2022 and early 2023 – a trend that is likely to continue – but others have adjusted to market realities.

KEY TAKEAWAYS

  • Consensus remains that funding is available for some companies, as long as they meet important milestones or have significant readouts approaching soon. IPO activity is expected to remain muted in 2023 and macroeconomic factors a headwind for biopharma.

Scrip spoke with several investors and executives at BIO about their expectations for when this downturn in the financial market...

Scrip Podcast

Keep up with the top pharma business news of the week. On the go.

Scrip brings you a weekly bulletin of top picks.

SpotifyApple PodcastsWebsite

More from Financing

India Rare Diseases: Court Shows Path For Policy Action, Funding, Price Issues-- Test-2

A court order encompassing funding, drug pricing, clinical trials and overall policy implementation aspects is expected to bring about a paradigm shift in the treatment of rare diseases in India. Sarepta, Roche and Sanofi are among the key players that have been part of pricing discussions.

Scrip-Business (Free-1): Top-Selling Drugs 2024: Keytruda, Ozempic And Dupixent Dominate

 
• By Nabil

Merck’s immuno-oncology blockbuster was the world’s best-selling drugs by revenues for the second year in a row, with an almost $12bn lead over its closest rival, Novo Nordisk’s GLP-1 drug Ozempic.

Sponsored By

Nancy Tests SPARC-931 Part 8

This is a short description. This is a short description.

spo

Akash test for clone

Test article to check the clone issue

More from Business

How A New Healthcare Dialogue Is Driving Market Access In Mexico

Companies stand a better chance of securing public reimbursement in Mexico for innovative medicines if they understand changing approaches to healthcare. The shift means the emergence of managed entry agreements and a focus on economic impact, explains AMIIF, Mexico's research-based pharmaceutical industry association.

How Novartis Is Elevating CVD Outcomes, Driving ‘Personalized Access’ In APMA

Novartis’s APMA chief outlines the company’s tailored approach to deliver long-term outcomes, novel access solutions via innovative financing options and shape the CVD disease ecosystem in the extraordinarily diverse region. Partnering to build AI infrastructure is another key prong.

India Rare Diseases: Court Shows Path For Policy Action, Funding, Price Issues-- Test-2

A court order encompassing funding, drug pricing, clinical trials and overall policy implementation aspects is expected to bring about a paradigm shift in the treatment of rare diseases in India. Sarepta, Roche and Sanofi are among the key players that have been part of pricing discussions.