Difference between revisions of "Biotech Growth Rate outperforming classical pharmaceuticals"

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#REDIRECT [[Increasing Private Funding (Venture Capital) for Biotech Research and Start-up financing]]
==Description:==
Over the last years, the growth rate of biotech industry has by far outperformed  the one of the classical pharma industry. This has not had a positive impact on the profitability of biotech as such – profitability of most classical pharma majors is still higher than the one of most biotech companies – but it has shown in the development of stock prices. Biotechnology stocks have outperformed the ones of classical pharma majors thanks to the hope for future profits.


==Enablers:==
• Hope for good profit margins<br>
• Hope for huge ROE<br>
• Potential for spectacular breakthroughs in Research.
<br>
==Inhibitors:==
• Increase (instead of decrease) of R&D cost in biotechnology<br>
• Decrease in R&D costs for classical drugs<br>
• Entry barriers getting lower because of increased availability of fundamental research<br>
• Drug Approval regulations getting stricter<br>
• Insecurity regarding the development of legal frameworks<br>
• Price Pressure due to exploding healthcare cost<br>
==Paradigms:==
• Investors look elsewhere
==Experts:==
[[The Future of Biotechnology for Medical Applications in 2005, Growth/Development Issues]]
==Timing:==
==Web Resources:==
[[The Future of Biotechnology for Medical Applications in 2005, Growth/Development Issues]]

Latest revision as of 13:06, 2 December 2005

Description:

Over the last years, the growth rate of biotech industry has by far outperformed the one of the classical pharma industry. This has not had a positive impact on the profitability of biotech as such – profitability of most classical pharma majors is still higher than the one of most biotech companies – but it has shown in the development of stock prices. Biotechnology stocks have outperformed the ones of classical pharma majors thanks to the hope for future profits.

Enablers:

• Hope for good profit margins
• Hope for huge ROE
• Potential for spectacular breakthroughs in Research.

Inhibitors:

• Increase (instead of decrease) of R&D cost in biotechnology
• Decrease in R&D costs for classical drugs
• Entry barriers getting lower because of increased availability of fundamental research
• Drug Approval regulations getting stricter
• Insecurity regarding the development of legal frameworks
• Price Pressure due to exploding healthcare cost

Paradigms:

• Investors look elsewhere

Experts:

The Future of Biotechnology for Medical Applications in 2005, Growth/Development Issues

Timing:

Web Resources:

The Future of Biotechnology for Medical Applications in 2005, Growth/Development Issues