Interview, Fireside Chat
The Surge in Global Biotech Innovation
- U.S. biotech capital markets are not expected to reach the $28 billion raised in 2018 or the $28 million in 2019, though drivers from 2018, 2019, and summer 2020 are anticipated to continue through 2021.
- The sector is currently driven by supply-side innovation in genomic medicine, precision oncology, and new modalities like gene therapy, with investor interest and large-cap pharma M&A activity expected to persist.
- Large-cap pharmaceutical companies face revenue growth challenges and patent cliffs, prompting a need to utilize external innovation and M&A to fill gaps, supported by significant dry powder and reduced tax reform risks.
- A robust fourth quarter for biopharma M&A is projected, with CEOs having visibility for the next few years to capitalize on corporate strengths.
- COVID-19-related stocks have added over $50 billion in market cap this year, and multiple companies are positioned for success given the pandemic's scale.
- Pfizer and BioNTech's vaccine is highly likely to receive emergency use authorization, with potential full approval anticipated as early as December or January of next year.
- Approximately 60 healthcare companies listed in China and Hong Kong this year raised $16 billion, with the sector expected to transition from local leadership to global prominence over the coming decade.