Facts & figures
2015: European Biotechnology in Numbers
An all-time high was reached in European biotechnology finance in 2015. Innovation capital was the most prominent feature of European biotechnology this year. We’ve based ourselves on the EY Report Beyond borders 2016: Biotech financing: Bountiful harvest leaves biotech well prepared for financial winter to bring this information to you.
- European biotechnology financings were a total of 9.9 billion dollars – Europe’s all-time high
- Venture funding: 2.5 billion dollars
- Follow-on rounds: 3.7 billion dollars
- Debt financing: 2.3 billion dollars
- Almost 10 billion was raised in capital by European biotechs
- 91% of that amount was innovation capital (9.1 billion dollars) – a 29% increase compared to 2014
- European biotechs raised 2,5 billion dollars in venture capital
- The UK was the leader for innovation capital in 2015: total funding was 2.4 billion dollars, venture funding was 884 million dollars and 87 investments were made.
- Ireland took second place in total investment: 1.7 billion dollars)
- France (782 million dollars) & Belgium (781 million dollars) came in third and fourth place for total investment
- Switzerland (381 million dollars) and Germany (270 million dollars) came in second and third place in venture funding
- IPOS: 33 European companies went public in 2015, total fundraising via IPOS was 1.4 billion dollars and the average amount raised was 42 million dollars.
2014: European Biotechnology in Numbers
2014 was a successful year for biotech, increases in R&D, revenues, IPOS, capital and market capitalisation were especially prominent. In fact, it was European biotech’s strongest performance in the history of the industry. We’ve based ourselves entirely on the EY Beyond Borders 2015 report to bring this information to you.
Source: Biotechnology Industry Report 2015 Beyond borders Reaching new heights
There was growth in almost all areas. It was a good year for biotech.
- European companies’ revenue rebounded in 2014, top-line sales expanded 15% compared to 3% in 2013;
- 77% of European biotechs generated some revenue and 69% increased their top lines;
- R&D spending by European biotechs increased 14% in 2014, reaching 5.6 billion dollars. 57% of Europe’s biotechs increased their R&D expenditures in 2014;
- European biotech companies’ aggregate net income increased by 199% to 3.3 billion dollars;
- European biotech companies added 533 million dollars in aggregate net income, which was a 52% annual increase;
2014 was a strong year for financing performance – in fact it was the strongest performance in the history of the industry.
- The market capitalisations of European biotech companies increased. 59% of European biotechs saw an increase in their market caps;
- 31 European biotech companies made their start in public exchanges (including exchanges located in the US). The number of European public biotech companies increased by 20%. These new listings participated 1% to the continent’s revenue growth and 39% to the upsurge in R&D expenditures;
- 2014 was a good year for commercial leaders; they were responsible for 77% of the annual revenue growth.
- The financial performance of Europe’s non-commercial leaders increased and surpassed the commercial leaders in terms of R&D and revenue;
- Smaller European biotech companies’ revenues increased by 717 million dollars;
- Non-commercial leaders increased their R&D expenditures by a total of 401 million dollars, the commercial leaders increased by 256 million dollars;
- 2014 was the strongest year in the history of the industry for financing performance. The sector raised 9.2 billion dollars, 53% more than in 2013. IPOs raised 1.9 billion. Follow-on financing generated 3.1 billion dollars. Debt financing brought in 2.2 billion dollars. Venture capital raised 2 billion dollars.
- European innovation capital was 6.5 billion dollars. Venture investment was responsible for 31% of the total.
What will 2016 bring?
Over the years biotech companies have acquired a lot of cash due to venture capital firms raising new funds. Operations will continue and promising new treatments from companies who can demonstrate how patients profit from the latter will be able to attract cash.
Source: IPOS: The times they are are a-changin’ – European Biotechnology : Spring Edition, Vol.15, 2016