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State of the Industry for Emerging Therapeutic Companies

June 11, 2015
Emerging therapeutic companies are at their strongest point in a decade. In our new report on investment and deal trends, the BIO Industry Analysis team shows how this segment within the biotech industry has been faring over the last 10 years. The annual aggregate totals show that for almost every funding or deal activity analyzed, 2014 was the peak year of the last decade.

IPO 2005-14

A strong public market, a revitalized private funding environment, and a turnaround in licensing activity are significant forces shaping the future of innovation for new medicines. As detailed in the report, these small companies that are highly dependent on efficient access to capital and long-term collaborations account for 70% of the industry’s clinical pipeline.

Digging deeper into the report, however, reveals that there is also a story of "haves" and "have-nots" beneath the aggregate numbers. Exceptions to the rosy picture include fewer first-time venture capital funding for start-ups, and less funding for diseases with large populations of patients.

To continue the deal strength into 2015, companies will converge next week for the BIO International Convention in Philadelphia. The event is expected to draw more than 15,000 industry leaders from across the globe, connecting the people and companies across the wide spectrum of life science application areas. The meetings and connections formed each year at the BIO Convention foster investment and licensing deals which are the lifeblood of the industry.