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European Biopharmaceutical Review
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A CONSTRAINED CAPITAL ENVIRONMENT
The financial crisis is affecting high-tech small and medium enterprises (SMEs), startups in particular, as they are confronted with three types of risk: technological risk, resulting from the explorative nature of R&D and production of high-tech goods; market risk, as a result of the uncertainty in the high-tech product market; and financial risk, as high-tech innovation usually requires huge investment. However, most high-tech startups lack long-term investment capability. The risks for biotech SMEs are concentrated at the sector and operational levels. Even before the financial crisis, funding for biotech SMEs was different from other industries, and the risks they face reflect unique challenges and circumstances. In this high-risk environment, investors have historically had to develop different metrics in valuing biotech companies. A specific characteristic of the biotech industry is the long and costly development process. While larger biotech firms already have products on the market, young and innovative biotech SMEs need significant funding to develop a product before generating significant potential for commercialisation, and this funding – through risk capital – has proved insufficient, especially in times of economic and financial crisis.
European biotech companies are facing a critical financial shortfall that could have profound consequences for the future of Europe’s knowledge-based economy in terms of both the drug development pipeline and job creation. Almost three-quarters of the UK’s 295 drug development SMEs, for example, are experiencing difficulties raising funds due to a closed IPO window, a huge reduction of available venture capital, and a significant increase in credit spreads due to the worldwide economic downturn. For this reason, a paper has been tabled, proposing five measures to overcome the financing problems that European biotech SMEs are facing as a result of the financial crisis, and to improve the situation of innovative drug developers (1). |
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News and Press Releases |
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SEKISUI XenoTech Receives New US Patent for a Method to Evaluate Xenobiotics as Immune-Modulators of Drug Transport and Metabolism in Hepatocytes
Kansas City, KS- SEKISUI XenoTech has been awarded US patent # 10,648,968 “In vitro test system to evaluate xenobiotics as
immune-modulators of drug transport and metabolism in human hepatocytes.”
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White Papers |
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Mauritius Island – An Emerging Centre for R&D in Biotechnology and the Life Sciences
CIDP (Centre International de Développement Pharmaceutique)
Mauritius, the tropical island situated in the Indian Ocean and known
worldwide for its beautiful beaches, is also internationally recognised
for its rule of law, and political and social stability. Over the past
few years, the economy has been successfully transitioned from a
monocrop to a diversified innovation-driven and knowledge-based economy,
resting on agribusiness, export-oriented manufacturing, tourism,
financial services, property development and real estate, ICT-BPO, the
seafood industry, a free port, logistics and a nascent ocean economy.
Emerging sectors such as healthcare and life sciences are presenting
some niche areas for the taking, and the enabling environment is being
put in place to make it happen - especially in the light of sustained
growth within pharmaceutical, medical device, and clinical research.
Important
international players are already in operation locally as the country
has established the appropriate legal and regulatory frameworks based on
international norms, for the development of a strong biomedical
research sector.
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Industry Events |
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12th World Meeting on Pharmaceutics, Biopharmaceutics and Pharmaceutical Technology
8-11 February 2021, Vienna, Austria
In continuation of the very successful scientific meetings in Budapest, Paris, Berlin, Florence, Geneva, Barcelona, Malta, Istanbul, Lisbon, Glasgow and Granada, the 12th PBP World will be held in Vienna from 8-11 Feb 2021. This every two year held conference has gained an ever increasing impact among the pharmaceutical scientists: With up to 1000 submitted abstracts and about 1300 participants it has become a well-established major meeting, attracting scientists from all over the world.
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