- Expect Ongoing Disruption in the Biotech
Sector – Biotech companies will continue to
encounter a myriad of issues around financing. Stock prices of
publicly traded biotechs continue to languish. Venture Capital
(VC)-funded biotechs are struggling to secure their next round of
investment or the funding of their ongoing clinical development
programs. VCs have become highly selective and this elongates the
investment path.
- The U.S. Market is the Place to be –
Large non-U.S. pharmas and foreign biotechs are increasingly
looking to the United States as a destination for growth. While
acknowledging the size of the U.S. market, the underlying
motivation to "go U.S." is driven by current finances, a
large market, and other drivers. In turn, this creates
opportunities for U.S. VCs and other funding sources to
"onshore" innovative technology and products.
- Artificial Intelligence (AI) in Pharma is Still to be
Determined – While going strong in the medtech and
medical device sectors, the validation of AI use in drug
development and adoption by big pharma will take time. Validation
of the use of AI will likely occur through a combination of
incremental technological success, regulatory approval, and
commercial adoption.
- Disruption Creates Opportunities for Investors
– Investors who remain disciplined, but also operate outside
the norm, can take advantage of the disruption and access
technologies that may not have otherwise been on the radar.
- Expect Increasing Use and Introduction of Innovative Financing – The uncertain market is ripe for nontraditional sources of funding. As providers of alternative financing become more sophisticated in their structures to meet the needs of the market, expect to see further unlocking of creative funding to meet market demand.
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