EP vantage report: the prosperity of biotechnology 2013 is unsustainable

Source: Biovalley 2014-3-13 2013 is a year of complacency in the pharmaceutical development industry However, while the industry has entered the new year with optimism, early signs of 2014 suggest that last year's boom may be unsustainable EP vantage, a unit of evaluate Pharma, has released an annual report that depicts a beautiful picture of the biopharmaceutical industry in the past year: nearly 45 new biotech companies have gone public, with a net raise of $3 billion, and only 9 companies have lost their market value at the end of the year Meanwhile, in the M & a market, the average transaction volume soared to $708 million, nearly double the 2012 figure This is good for the whole industry, such as the NASDAQ Biotechnology Index rose 66% in 2013, much more enthusiastic than the early peak of the "genomic bubble" in 2000 In terms of regulation, although the total number of drugs approved in 2013 is less than that in 2012, the gap can be closed in future sales According to the report of EP vantage, the 5-year expected sales volume of 33 new drugs approved in 2013 is expected to reach US $25.4 billion, significantly higher than the peak of the past 10 years, 50% higher than the 5-year expected sales volume of 43 new drugs approved in 2012 Among the drugs approved in 2013, eight are expected to become heavyweight drugs in 2018 Among them, Gilead's hepatitis C drug sovaldi, Baijian Aidi's oral multiple sclerosis drug tecfidera and Roche's antibody coupling drug kadcyla will be the leaders However, the torrent of factors that contributed to the harvest year of 2013 may be unsustainable in 2014, and biotechnology companies may be the victims of their own success The market value of drug developers has been pushed higher and higher by well performing stocks and optimistic market conditions, which will lead to some vicious cycles Large pharmaceutical companies may be scared and away from investors' desire to be bought at a high price If the biopharmaceutical M & a market dries up in the next year, the IPO boom may be the culprit At the same time, in terms of drug sales potential, EP vantage pointed out that the number of potential heavy drugs in 2014 is expected to be less than any of the past four years, which is a signal that it is difficult to repeat the record R & D productivity in 2013 in 2014, and also reminds investors of the ups and downs of the drug R & D industry No one can predict that 2014 will repeat the good fortune of 2013 No one can predict that 2014 will be the end of the world Most investors will not want to leave early, but are willing to wait for some turbulence Original link: http://www.finebiotech.com/story/inside-biotechs-big-year-2013s-approvals-ipos-and-sky-high-values-will/2014-03-11