biotech showcase™2019 investment trends...
TRANSCRIPT
• Survey included 10 questions on biotech industry investment trends for 2019
• Survey was sent to the 2018 list of registered Biotech Showcase attendees
• 80 people provided responses
Survey Overview
Which of the following best describes your professional role?• Venture capitalist• Corporate investor• Investment banker/banker• Private investor• Buy side/sell side research analyst• Executive or upper management of biotech or pharma company• Research and development executive• Government official• Professional service provider• Press and media
QuesBon 1:
Survey Responder Demographics - Chart
Investors, 33.75%
Executives and Upper
Management, 48.75%
Government official, 2.50%
Professional service provider,
11.25%
Press and media, 3.75%2.50%2.50%
5.00%
7.50%
16.25%
Buy side/sell side research analystCorporate Investor
Investment Banker
Private Investor
Venture Capitalist
Based on 80 responses to survey
Survey Responder Demographics - TableRESPONDER OCCUPATION
# OF RESPONDERS
PERCENT OF TOTAL
INVESTOR (Total of subcategories below) 27 33.75%Venture capitalist 13 16.25%Corporate investor 2 2.50%Investment banker/banker 4 5.00%Private investor 6 7.50%Buy side/sell side research analyst 2 2.50%
EXECUTIVE/UPPER MANAGEMENT (Total of subcategories below) 39 48.75%
Executive or upper management of biotech or pharma company 35 43.75%Research and development executive 4 5.00%
Government official 2 2.50%Professional service provider 9 11.25%Press and media 3 3.75%
Total Responders 80
Overall, you expect to see ________ in life science investments in 2019 compared to 2018.• Increase• Decrease• No change
Question 2:
The majority of life science investors and executives expect to see an increase in investment during 2019
20.00%
6.25% 7.50%
37.50%
2.50%
8.75%
7.50%
3.75%
6.25%
0%
10%
20%
30%
40%
50%
60%
70%
Increase Decrease No Change
Investors
Executives
Media, Services, Gov
Sixty percent of life science investors expect to see an increase in investment in 2019
0%
10%
20%
30%
40%
50%
60%
70%
Increase Decrease No Change
Of the following areas, which do you think is poised to have the biggest near-term breakthrough?• Alzheimer’s and CNS diseases• Cell and gene therapy• Immuno-oncology• NASH• RNA therapeutics• Rare and orphan disease• Digital medicine• Other (please specify)
Question 3:
Of the major therapeutic areas, biotech leaders think cell and gene therapy is poised to have biggest breakthrough in 2019
15.00%
6.25%1.25% 2.50% 3.75%
1.25% 2.50% 1.25%
12.50%
11.25%
7.50% 5.00% 2.50%5.00% 1.25% 3.75%
3.75%
5.00%
1.25% 2.50%1.25%
2.50% 1.25%
0%
5%
10%
15%
20%
25%
30%
35%
Cell an
d gene
thera
py
Immun
o-onco
logy
Rare an
d orph
an di
seas
e
Digital
med
icine
Alzheim
er’s a
nd CNSNASH
RNA thera
peuti
csOther
Of the factors listed below, what is the biggest challenge biotech companies face in securing funds in the coming year?• Crowded market or sector• Economic volatility• Inexperienced management team• Lack of achieved milestones• Inability to manage pipeline progression or clinical trials• Other (please specify)
Question 4:
Biggest challenges for securing funds in the coming year are crowded markets, economic volatility, and inexperienced management
0%
5%
10%
15%
20%
25%
Crowded market or sector Economic volatility Inexperiencedmanagement team
Lack of achievedmilestones
Inability to manage pipelineprogression or clinical trials
Other
Do you expect the recent stock market volatility to affect overall biotech investment in 2019?• Yes• No• Unsure
Question 5:
Most biotech leaders expect the stock market volatility to have an overall effect on 2019 investments
20.00%
7.50% 6.25%
27.50%
11.25%10.00%
11.25%
3.75%2.50%
0%
10%
20%
30%
40%
50%
60%
70%
Yes No Unsure
Question 6:
• Boston• Los Angeles• New York• Philadelphia• Raleigh-Durham• San Diego
• San Francisco• Seattle• Other (please specify)
What US city/region will see the biggest percent increase in investment dollars in the biotechnology industry in 2019?
Boston holds #1 seat for predicted influx of investment dollars among the major U.S. cities
8.75%
2.50%
7.50%5.00% 3.75%
1.25%3.75%
1.25%
12.50%
11.25%
8.75%
5.00%5.00%
3.75%1.25%
1.25%
10.00%
2.50%
3.75%
1.25%
0%
5%
10%
15%
20%
25%
30%
35%
Boston San Diego San Francisco New York Other* Los Angeles Philadelphia Raleigh-Durham Seattle
*Texas (3), New Jersey, Maryland
8.75%7.50%
5.00%3.75% 3.75%
2.50%1.25% 1.25%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
Boston
San Fr
ancis
co
New York
Other*
Philad
elphia
San D
iego
Los A
ngele
s
Raleigh
-Durh
amSea
ttle
Investors think New York is the next city, after Boston and San Francisco, to see an influx of investment dollars in 2019
*Texas (3), New Jersey, Maryland
Ques%on 7:
Which region outside the United States will see the biggest percent increase in investment dollars in the biotechnology industry in 2019?• China• UK• Germany• Benelux• Japan• France• Spain• Scandinavia• South Korea• Other*
China predicted to see the biggest percent increase in 2019 biotech investment dollars when compared to other global biotech hot spots
12.50%
5.00% 5.00% 3.75% 2.50% 1.25% 2.50%
25.00%
5.00%2.50% 3.75%
6.25% 2.50%1.25%
1.25%1.25%
7.50%
2.50% 1.25%1.25%
1.25%1.25%
2.50%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
China UK Germany Benelux Japan France Spain Scandinavia S. Korea Other*
*Israel (3), Singapore, Unspecified
Question 8 & 9:
What impact will US/China trade war have on strategy for investment, partnerships, or expansion in China? • Negative Impact• No Impact
Will this trade war have a long-term impact on biotech investments originating from China?• Yes• No• Unsure
While life science leaders do not expect the U.S./China trade warto have an impact on their regional strategies, they do expect it will have long-term impact on investments coming from that region
One third of biotech execuAves think the trade war will have a long term impact on investments originaAng from China
15.15% 13.64% 12.12%
33.33%
7.58%18.18%
0%
10%
20%
30%
40%
50%
60%
Yes No UnsureInvestors Executives
3035
Investor and Executive Responses
Negative Impact No Impact
More than half of biotech leaders think the trade war with China will have no impact on their strategy for partnerships, investments, or expansion in this region
Question 10:
What impact will the UK exit from the EU in March 2019 have on investment in the regions below? • United Kingdom, North America, European Union, Other
Global Markets• Increase• Decrease• No change