Tuesday, December 16, 2008

Scary Statistics for Biotech Industry

Biotechnology Industry Statistics: December 2008

• By comparison with 2007 through the first 11 months of the year, funds raised from IPOs have fallen 97% and follow-on/secondary offerings have fallen 56%. Through November 30, 2008, total capital raised by the industry has fallen by 56% (source: BioCentury).

• 120 companies (30%) are now trading with less than 6 months of cash on hand. This represents a jump of 90% more companies that have less than 6 months cash on hand vs. 2007. (source: BIO) 180 companies (45%) have less than 1 year of cash remaining” This represents a jump of 65% more companies that have less than 1 year cash on hand vs. 2007. (source: BIO) Only 10% of the 370 public US biotech companies have positive income. (source: BIO)

Stock Performance In 2008 Through 11/24/08:
• All US biotech stock performance: Mean - 51%, Median -62% ;
• Small US biotech stock performance: Mean - 53%, Median -64;
• Large US biotech stock performance: Mean - 33%, Median -42%
• 90% of US biotech stocks have dropped in 2008 as of 11/24/08
• 35% of the 270 biotech companies under $1 Billion in market cap are trading below their cash value. That is, they have more cash on hand per share than the market value of their companies. This level has gone up by 5x as compares with the average over the 5 prior years. (source: BIO).

• 24 small, public biotechs have laid-off workers in the past eight weeks alone (10/1/08-12/5/08.) (source: BIO)

• In the past three months (9/1/08-12/1/08), many promising drug development programs have been shelved in a number of therapeutic areas including: Alzheimer’s, Multiple Sclerosis, diabetes and various cancers (source: BioCentury)

• The biosciences sector pays, on average, 68% higher salaries than the average private-sector job. The average annual wage of the bioscience worker is approximately $71,000 as compared with an average annual wage of $42,000 for the total private sector. (source: Battelle)

• The total employment in the biosciences in the U.S. reached 1.3 million in 2006, up from 1.2 million in 2004, with bioscience workers found in all 50 states and Puerto Rico. (source: Battelle)

• The U.S. biotechnology industry is very R&D-intensive with $30 billion in 2007 invested in research for new therapies and cures. There are currently more than 400 biotech drug products and vaccines currently in clinical trials targeting more than 200 diseases including various cancers, Alzheimer’s disease, heart disease, diabetes, multiple sclerosis, AIDS and arthritis. (source: E&Y)

The data were compiled by BIO for their lobbying effort on Capitol Hill for the NOL Stimulus Proposal.

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