The global biotechnology industry has become a “outperform”, the market value surpasses one trillion US dollars for the first time

Source: in the past two years of 2015-06-16, the biotechnology industry has developed rapidly and become increasingly mature According to the 29th annual biotechnology industry report released by ey on June 15, 2014, the global biotechnology industry made another great achievement, almost breaking all financial index records such as revenue, profitability and financing scale The net income of the whole year increased by 231% to 14.9 billion US dollars The R & D expenses of American and European enterprises investing in new products increased by 20% The total financing amount of American and European companies reached 54.3 billion US dollars, 94 New US and European companies have made initial public offerings The positive performance indicators, together with the strong growth trend of many high-profile successful products and new drug approval, helped the total market value of the industry to break the $1 trillion mark for the first time "The outstanding performance and growing maturity of the global biotechnology industry has inspired optimism that a new generation of biotechnology innovation will create long-term value for businesses, investors and patients Investors are confident in the future and have made the largest investment in small businesses that are expected to make breakthroughs in the future " Said Glenn Giovanni, partner in charge of global life sciences at Ernst & young It is reported that the above survey results are based on the analysis of ey's main business is to industrialize and apply modern biotechnology to health care industry companies These companies are mainly concentrated in North America, Europe, Australia and other regions with relatively mature global biotechnology Specifically, the report has the following eight key findings: the first is a surge in revenue Companies located in mature biotechnology centers (US, Europe, Canada and Australia) generated US $123 billion in revenue in 2014, up 24% year on year, a new record In addition to the astonishing growth of Gilead Sciences, the industry's leading enterprise, 12% of the annual income growth was healthy The second is that profitability comes from reasonable factors Net income of US $14.9 billion for the year was a record, up 231% year-on-year Although this increase is closely related to Geely's amazing performance, after adjustment, the overall net income has doubled From 2009 to 2012, biotechnology companies made profits by cutting costs In contrast, the total increase in net income in 2014 was entirely due to the sale of new listed products The third is the increase of R & D cost As a key indicator of the medical industry, R & D expenses increased by 20% in the whole year, surpassing the growth of industry revenue for two consecutive years, and small enterprises in the United States and Europe have contributed to this growth Fourth, record financing Biotechnology companies in the United States and Europe raised 54.3 billion US dollars in the whole year, a 72% increase over their financing performance in 2013 In the full swing of IPO and subsequent issuance, the company obtained $28.3 billion in non debt financing and set a new record "Innovation capital" refers to the amount of equity capital raised by enterprises with revenue less than US $500 million, which is the key indicator for the sustainable development of early biotechnology enterprises This indicator has reached a new record of US $27.6 billion, an increase of 120% over the annual average value achieved from 2009 to 2012 The fifth is that risk financing approaches the record level American and European enterprises raised $7.6 billion in venture capital, up 28% year on year, close to the historical record of $7.9 billion in 2007 Under the positive influence of innovation, the early financing of enterprises has obtained US $1.8 billion, which is the largest amount in nearly 10 years Sixth, IPO windows continue to emerge A total of 94 us and European biotech companies went public in the year, far exceeding the record of 79 in 2000 IPO financing is US $6 billion 800 million, just behind the $7 billion 800 million of the 2000 gene bubble The IPO window in 2013 rose for eight consecutive quarters, setting a new record The seventh is the doubling of drug approval As the U.S Food and Drug Administration (FDA) encourages new drugs to go on the market, 41 products were approved in 2014, compared with 27 in 2013 More than three-quarters of approvals in 2014 were filed for the first time The eighth is the proliferation of M & A cases With the increase of purchasing activities of pharmaceutical enterprises, the annual M & A activities reached the largest scale in 10 years There are 68 biotechnology M & A transactions with a total value of US $49 billion 2014 is also the most profitable year for Biotechnology enterprise alliance in the past eight years In terms of the percentage of total value of transactions, prepayments accounted for 11%, and the total amount of prepayments increased by 96% to US $5.1 billion From the perspective of the US, the leader of biotechnology, the revenue of listed biotechnology enterprises in 2014 reached 93.1 billion US dollars, a year-on-year increase of 29%; the R & D expenses increased by 22% to 28.8 billion US dollars; the net income increased by 29.3% to 10.6 billion US dollars; the market value increased by 34%, 58% of the enterprises achieved the same valuation growth; the total amount of funds provided by the US reached a record 451 US $billion, raised through IPO (US $4.9 billion) and debt financing (US $23.3 billion) as well as innovative capital (US $21.1 billion) hit new highs; total risk financing was US $5.6 billion, an increase of 27% compared with the average value of US $4.4 billion in the previous decade; total value of M & A increased by 50% compared with 2013, to US $42.9 billion, since 2007 The third largest annual total volume since The number of transactions increased from 42 to 51, the highest in eight years Although the biomedical industry has made great achievements, it still faces unique challenges in the future "Unprecedented product approvals have led to unprecedented pricing pressures, and companies need to continue to demonstrate that their products can realize their value and contribute to the overall sustainable development of the healthcare system," Giovanni said "Some mature biotech companies may face additional resistance." Jeffrey green, partner in charge of consulting services for global life sciences financial transactions at Ernst & young, said: "as companies face price pressures and increasing competition from areas such as bio generic drugs, they need new sources of growth Growth through deals and acquisitions is likely to cost more and face greater challenges The current M & a pattern is obviously the seller's market There are very few assets that actually affect the financial performance of the buyer and they will dominate the premium "