Today Steven Burrill released his “Burrill State if the Idustry Report”. Annually this is one of the most anticipated events at the BIO Convention. Last week Steven Burrill sent out a press release discussion that as healthcare shifts to a new value-based focus, Big Biotech companies are demonstrating that they are better positioned than pharmaceutical industry counterparts to meet changing demands. Big Biotech has outpaced Big Pharma in terms of growth of sales, income, investment in R&D, and market cap during the past three years, according to an analysis by Burrill & Company.
“As the industry migrates away from an era of the one-size-fits all blockbuster, the biotechnology industry's strength at developing innovative therapies that meet unmet medical needs and target the molecular mechanisms of diseases gives it an upper hand in creating value,” says G. Steven Burrill, CEO of Burrill & Company
Big Biotech enjoyed a 57 percent increase in market cap for the three years ending December 31, 2012 as the total value of the group climbed to $260.6 billion from $160.1 billion at the end of 2009. That compared to a 17.4 percent increase for Big Pharma during the same period as the market cap for the group climbed to a collective $1,257 billion from $1,070 billion.
If you are not able to attend Burrill's State of the industry, here is his Keynote from the Life Science Innovation Northwest Conference.
Don't know who Steven Burrill is? Click here to learn more about him. Below I have provide snippets from Burrill's State of the Industry.
Burrill starts off the session looking back at the last 20 years, following the theme of the BIO Conventions 20 yr anniversary.
We are at a all time high as to how others value our industry.
No crowd funding has been done, there is no regulation. Hope is that in the next year we will start to see some funding.
Sequestration will have a very detrimental effect on our industry, as NIH and FDA funding is impacted.
We have more regularity, pricing and IP problems in the world.
Korean, china and polish economies diving into the biosimilars market making it harder for the us market.
One in three babies will live to 100 yrs, this is a large problem for the system. 76% of expenses are for chronic care. What used to kill us, doesn't and this is adding cost to the system.
We can fix a lot of our problems with better connectivity and better data, there is enormous opportunity if we can do this
The pharmaceutical industry is a aging dinosaur, it is based on block buster industry that needs to find a new way to operate to keep from going extinct. They are starting to look at smaller markets and orphan disease, R&D is getting more expensive and less efficient, not Pharma is looking to outside sources for this, including universities. The academics are becoming the r function of big Pharma.
$1.8 b to bring is new product to market and it now takes 15 years.
I had to step out for another meeting, but Steve talked for a while about building value, both providing and value capture. I have heard this in other mediums before, for the industry to continue to grow and deal with its growing problems, companies are going to have to show value for consumers and investors, but they also need to capture value using tools like data. We have seen value coming from repurposing old drugs and listening to patent populations and market problems and addressing them with older drugs. It is not enough to just bring a drug to market.
This is a conversation, not an editorial. Did I forget something, get it wrong or do you agree? Please Comment, Like, Re-Tweet and Share.