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Investment Survey Reveals Increased Confidence in Biotechnology Sector

06 Oct 2005 - Global Life Science Ventures (GLSV) released the results of a survey revealing increased optimism about the biotechnology sector and favourable long-term investment prospects, leading a massive 87% of investors and analysts to recommend investment in the biotechnology sector. The GLSV Biotech Investment Barometer was based on a questionnaire sent to several hundred biotechnology company executives and members of the financial community located mainly in Switzerland and continental Europe. Analysis of the 98 responses received, divided evenly between the biotechnology and investor/analyst groups, revealed several key conclusions:
 
46% of respondents were more optimistic about the biotech sector than 12 months ago, while only 11% were less so. The biotechnology market was considered on average to be fairly valued by the investors and analysts, while 57% of biotechnology company executives considered the market somewhat or very much undervalued. 77% of respondents agreed that the greatest value driver for biotechnology is developing therapeutics for untreatable medical conditions and filling the pharma industry's R&D pipeline.
 
The greatest threats to the industry were considered to be:
 
1. insufficient availability of funding to sustain development (45% of biotechnology respondents)
 
2. the inability of companies to translate innovation into marketable drugs
 
Interestingly, in the wake of several recent high-profile product withdrawals (Vioxx, Tysabri), safety issues were considered to be of moderate importance but not the overriding concern.
 
The long-term perspectives for the biotech sector were judged highly or generally favourable by 87% of all respondents, and an equivalent 87% of the investor/analyst group were recommending investments in biotechnology.