On August 4, Bristol-Myers Squibb (BMS) and Allied Minds announced that they have jointly created a joint venture company, Allied-Bristol Life Sciences, which will focus on early innovation from leading US universities and research institutions. Research and pre-clinical development and transformation. This action by Bristol-Myers Squibb reflects the new trend of investment in the medical industry in the United States: the establishment of industrial funds, the main investment in early pharmaceutical projects. Let's look at the recent US medical industry investment report from Sillicon Valley Bank, which shows a few interesting numbers. The investment in venture capital institutions in the two traditional medical sectors (biopharmaceuticals and medical devices) has steadily increased since 2010, from $23 billion in 2010 to $30 billion in 2013. The ratio of investment to biopharmaceuticals has remained at around 15%, but the proportion of investments in medical devices has dropped significantly, from 13% in 2009 to 7% in 2013. On the exit route, the IPO of biopharmaceutical projects remained strong. In 2013, 33 projects were listed. This figure is growing faster than in previous years (such as only 4 projects in 2011). At the same time, biopharmaceuticals had 13 projects acquired by Da pharmaceutical companies in 2013. In contrast, medical device IPOs are very weak. In 2013, only four projects were listed, and 14 projects eventually withdrew through acquisitions. In the biopharmaceutical sector, medical enterprise industry funds have played an increasingly important role in investment. In 2013, investment from industrial funds accounted for 35% of total investment, compared with 17% in 2009. In the medical enterprise sector, there is a similar trend. In 2013, industrial fund investment accounted for 10% of the total investment, compared with only 5% in 2009. The figures shown in the report indicate that the US investment in biopharmaceuticals and medical devices has changed in several directions in the past two years. First, investment in biopharmaceuticals began to depend on early stage. Investors, especially industrial funds formed by medical companies, have a strong incentive to support early projects, even from incubators. Large medical companies such as Novartis, GlaxoSmithKline and Pfizer have established special industry funds to invest in early projects. Among them, early innovation projects in the field of oncology and pharmaceuticals are the most optimistic. This aspect is because the market potential of oncology drugs is huge in the long run. On the other hand, the cost of innovation is increasing. The innovation ability of large companies is limited. They are very willing to absorb fresh blood and support small projects. If they develop well in the future, they will directly acquire them. On the other hand, early investment in medical devices showed weakness. This is because the cost of early entry of medical devices has increased, but more importantly, in the late exit, medical devices require a long return on investment cycle, and it is highly probable that earnings and income will not meet IPO requirements. In recent years, the speed of mergers and acquisitions among large medical device companies in the United States has accelerated. Although it has been combined, it means that there are fewer giants in the market for small project acquisitions. The difficulty in exiting is an important reason for the slowdown in medical device investment. In addition, the activity and influence of industrial funds in the entire investment community have increased rapidly. Given the pressure of innovation and the strategic need for the entire industry, medical companies are increasingly motivated to set up special investment funds to support the development of early projects. This trend will continue not only in the United States, but also rapidly across the globe, including China. The impact of these special funds on early project incubation will be huge, on the grounds that these industry funds have a deeper understanding of the industry than venture capital institutions and can provide more industry resources, such as innovation in new drugs. With regulatory approval, the channels of large companies are a huge advantage for startups, which are not available to venture capital institutions. Moreover, the industry fund is stronger than the venture capital fund in the endurance of investment returns, can accept longer investment time, and pay more attention to whether the future of the project itself will help the company's strategic layout in the whole industry. Finally, in terms of sectors, the field of cancer remains the hottest sector for biopharmaceutical investment, and its high profits and huge market potential are favored by investors. In addition, investments in biopharmaceuticals continue to be popular among ophthalmology, biometabolism and cardiovascular products. In the field of medical devices, the most popular investment is ophthalmic devices. The aging and rapid increase in the use of electronic products have brought about an increase in the demand for ophthalmic medical devices. This trend will continue in the future, and the world will face the same ophthalmology. The challenge is therefore the potential of the ophthalmology market is very large. In addition, imaging, cardiovascular and orthopedic devices are in great demand and will be a hot investment area. Source: Internet Photoelectric,Photoelectric Sensor Type,Photoelectric Sensor,Photoelectric Fire Alarm Guangdong Isafenest Co.,Ltd. , https://www.isfenest.com
Rapid development of the US medical industry fund: early biopharmaceuticals sought after
:2014-08-08