E&Y Biotech Report

"Nearly 30 years after the first biotechnology company opened its doors, the sector is reaching a new level of maturity and globalization. In 2004, the global biotech industry posted impressive growth and raised record amounts of venture capital.

EY’s latest report, Beyond Borders: Global Biotechnology Report 2005, continues the tradition. The report offers a strategic view of biotechnology at a global level, as well as insight into major regional markets, including the Americas, the Asia-Pacific region, and Europe. It brings together leading luminaries and analyzes key trends, including:

Coming of Age—The US biotechnology sector is maturing rapidly, driven by a remarkable surge of new biotechnology products that started in 2003 and continued through 2004. Capital markets are maturing, as well, in what promises to be a positive development for the sector.

Products, Products, Products—The biotech industry’s growth and maturation are driven by its product successes. Biotech companies now market approximately 230 drugs, including 13 therapeutic antibodies. The sector has an impressive pipeline of drugs in Phase III trials or awaiting regulatory approval. In 2004, a new challenge has emerged, as regulators increase their focus on product safety. How will these trends affect biotechnology’s movement toward profitability?

Global Solutions—Biotech hotbeds are emerging in the Asia-Pacific region, particularly Japan, India, and China. Korea and Singapore are creating niches in areas such as stem cell research and manufacturing, helping the global industry meet challenges such as restrictive public policy and drug pricing pressures.

Capital Markets — Biotech companies raised US$16.9 billion in capital in the U.S. and US$3.4 billion in Europe, surpassing 2003 totals. Yet, the industry is challenged by disappointing IPO evaluations, and early-stage companies struggle to find the capital they need to thrive.

Report Release—Beyond Borders 2005 was released June 21, 2005, at the BIO Convention in Philadelphia. Over 18,000 biotech investors, journalists, policymakers, and scientists from more than 60 countries attended the June 19–22 conference."

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