Bright Prospects: Biotech Execs Predict Continued Growth in 2011
Top bioenergy executives from the United States, Europe, Asia, and the Middle East share a sunny outlook about the industry’s prospects for the remainder of 2011. According to the recent Spring 2011 Bioenergy Business Outlook Survey, executives expect increases in jobs, biofuels revenue and investment opportunities.
The quarterly survey, conducted by Biofuels Digest and co-sponsored by BIO, drew responses from 746 Biofuels Digest subscribers — 85 percent of whom expressed more optimism than they had previously about their organizations’ prospects for growth as well as the industry’s as a whole. This boost in confidence represents an increase of five percentage points from the previous quarter and 15 percent increase from six months ago.
In May, at BIO’s 2011 World Congress on Industrial Biotechnology & Bioprocessing, executives will speak about the reasons behind this bullish attitude. Attendees at the Toronto conference will also get the chance to hear CEOs make presentations on the latest technology developments and industry business models.
Overall, respondents to the outlook survey anticipate that industry revenue will grow by 44 percent in the year to come. In the fall, they had pegged the biotech sector’s revenue growth at 41 percent in 2011.
As far as their individual companies are concerned, respondents said they expected to increase revenue over the next year by an average of 107 percent, and that green jobs at their companies would increase by 25 percent.
Representative of changing perceptions of bioenergy and biofuels, executives rated government organizations as “highly” or “moderately” supportive of the biotech industry. Among renewable fuel types, renewable diesel led the way as most likely to reach 1 billion gallons in global capacity by 2020, according to 67 percent of those surveyed.
Of course, the continued need for investment remains a critical concern. Most of the survey respondents (54 percent) plan to seek additional financing this year, and 72 percent expect that initial public offerings will increase.
At the World Congress investor sessions, company executives will have the chance to make formal 25-minute presentations about their business models and technology development efforts. Audiences at these sessions will consist of top-tier investors and analysts.
This will give each biotech company seeking investment a unique opportunity to showcase its innovative technologies, accomplishments, milestones, value proposition and business case. In a single meeting, companies will be able to meet multiple potential investors face to face.
This year’s 8th annual World Congress takes place May 8 through 11.