The cautious optimism of 2012 turned into a fully fledged biotech boom in 2013, marked by surging company valuations in the US and the opening of the IPO floodgates. The pharma and biotech sector also saw an increase in M&A deal values, buoyant licensing activity and sustained venture capital investment last year, according to EP Vantage’s latest report, “Pharma & Biotech 2013 in Review”.
The record-breaking value of new drug approvals was another notable story last year. Although the number of novel medicines to reach the market dipped on 2012, the class of 2013 is forecast to generate $25.4bn in their fifth year on the market - the best performance of the last decade.
Among the report’s key findings:
- The Nasdaq Biotech Index ended the year 66% higher than its previous peak during the genomics bubble of 2000
- Combined fifth-year projected sales for drugs approved in 2013 are forecast to hit $25.4bn, the highest in the last decade
- Of the 33 drugs approved in 2013, 8 are considered to be blockbusters-in-waiting
- The average deal values reached $708m last year, the highest since pre-crash levels; while the average sales multiple paid climbed for the third year in a row
- Venture capital investments in companies developing human therapeutics stabilized on 2012 at $4.5bn.
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