London:GlobalDataa data analytics company, revealed that Asia-Pacific ,APAC, biotech companies received three times less investments than their US counterparts between 2018 and 2022. venture financing for early-stage innovator drugs by biotech companies headquartered in APAC and the US increased from 2020 to 2021.
With increased investor confidence, the US biotechs saw a 70 percent increase in early-stage innovator drug venture financing, reaching a total deal value of $24.4 billion in 2021. In comparison, APAC biotechs saw 78 percent growth, but that only amounted to $9.4 billion. Although in 2022, both US and APAC biotechs reported a decrease in total deal value and volume, informed GlobalData’s Pharma Intelligence Center To install Deals database.
Between 2018 and 2022, APAC biotech companies received $23 billion for early-stage innovator drugs, whereas their US counterparts received more traction with $72 billion of investment.
Ophelia ChanMSc Business Fundamentals AnalystGlobalData, said, “The market saw a decline in investments in 2022 due to market volatility caused by factors such as inflation and geopolitical issues, including the Russia-Ukraine war.”
GlobalData Pharma Intelligence Center observed that while APAC headquartered biotechs have historically focused on generics and manufacturing, there seems to be a gradual shift toward investing more in seed and early-stage financing toward innovative drug development.
Asserting that the US continues to lead the biotech venture financing raised for innovator drugs, there is an increasing number of transactions between APAC startups and foreign pharmaceutical investors, Chan concluded by adding, “In addition, the biotechs headquartered in APAC are making strides in innovative developments to secure funding. Despite market volatility affecting both regions, growing interest in APAC’S innovative technologies from Western pharmaceutical companies could provide future opportunities in this space.”
