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Pharmaceutical industry

Biotech Industry in 2011: Notable Victories and Challenges

Strategic Insights

— 1 min read

The biotech industry in 2011 achieved significant milestones with major drug approvals, deals, and advancements. However, the sector was also heavily affected by global economic worries and political fights over government debt in Europe and the United States. Despite this, life sciences companies raised a total of $82.4 billion in public financings, up from $65 billion in 2010. The Burrill Biotech Select index finished the year up 18.5 percent, outpacing the Dow Jones Industrial Average and the Nasdaq Composite Index.

Key Takeaways:

  • The biotech industry in 2011 raised a total of $82.4 billion in public financings, up from $65 billion in 2010.
  • The Burrill Biotech Select index finished the year up 18.5 percent, outpacing the Dow Jones Industrial Average and the Nasdaq Composite Index.
  • The Burrill Mid-Cap Index was the best performer in the Burrill family of life sciences indices, ending the year up 35.4 percent.
  • The U.S. Food and Drug Administration approved 30 new drugs in 2011, compared to 21 in 2010.
  • Personalized medicine emerged as a bright spot for the sector with the FDA's approval of Roche's melanoma drug Zelboraf and Pfizer's non-small cell lung cancer drug Xalkori.
  • The JPMorgan Annual Healthcare Conference will take place in January, renewing investors' excitement over the progress being made by the biotech industry.
  • European sovereign debt crisis and U.S. elections may continue to impact the sector in 2012.
  • The pace of healthcare reform will accelerate, driven by payers, physicians, patients, and technology.

Statistics:

  • $82.4 billion: total public financings raised by life sciences companies in 2011
  • 18.5 percent: gain in the Burrill Biotech Select index
  • 35.4 percent: gain in the Burrill Mid-Cap Index
  • 30: new drugs approved by the U.S. Food and Drug Administration in 2011
  • 21: new drugs approved by the U.S. Food and Drug Administration in 2010
  • 87.9 percent: increase in global life sciences public equity financings (IPOs, PIPEs, and follow-ons) in 2011, compared to 2010
  • $9.9 billion: venture capital invested in the sector in 2011

Sources:

  • G. Steven Burrill, CEO of Burrill & Company
  • Burrill & Company (www.burrillandco.com)
  • U.S. Food and Drug Administration
  • Marketwire (Marketwire via COMTEX)

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