The Burrill Report

The Burrill Report (June 20, 2011): Why $25 Billion Just Doesn't Seem to Go That Far Anymore (.MP3,12.42 Mb)

Life Sciences companies raised $25 billion in funding in 2010, returning the industry to financing levels not seen since the global financial crisis. But a new report says those numbers obscure reality. Large debt financings swelled the numbers and the growing use of tranched investments have made it increasingly difficult to track the actual money going to fund innovative biotechnology companies. Ernst & Young in its newly released annual report Beyond Borders says by its calculations, once large debt financings are removed from the totals, the amount of capital to fund innovation is actually down 20 percent from 2009. What’s more, 20 percent of the companies garnered more than 80 percent of the funding. We spoke to Glen Giovannetti, global biotechnology leader for Ernst & Young, about the new report, what the numbers are telling us, and what can be done to ensure the industry sustains innovation.











June 17, 2011
http://www.burrillreport.com/article-why_25_billion_just_doesnt_seem_to_go_that_far_anymore.html