Increasing Private Funding (Venture Capital) for Biotech Research and Start-up financing

Description:

The US Biotech Industry is largely built on Private Venture Capital. Willingness of Private investors to continue sponsoring biotech depends on perspectives of the biotech industry with regards to growth, profitability and scalability. As long as Biotechnology is perceived as a growth industry, venture capital will be available.

Enablers:

• High ROE in Biotech investments
• Attractive Profit margins for biotech drugs
• Controllable investment risk grace to clear and stable legal framework and transparent as well as stable approval rules.
• Reduction of R&D costs thanks to shift of research activities to emerging markets
• Reduction of R&D costs thanks to vast (and steadily increasing) amount of fundamental research available

Inhibitors:

• Insecurity regarding the development of legal frameworks
• Drug approval authorities getting more and more strict
• Time periods needed for drug development getting longer
• Other attractive investment topics

Paradigms:

• Is biotech still a hot topic for venture capital investors?

Experts

The Future of Biotechnology for Medical Applications in 2005, Biotech Financial

Timing

• Tysabri: Suspension of sale per 28.2.05, eventually withdrawn form the market
• Vioxx: Withdrawn from the market per 30. 9.2004
• Veto of US President Bush against Stem Cell Research Bill: May 20, 2005

Web Resources

The Future of Biotechnology for Medical Applications in 2005, Biotech Financial