TORONTO, May 23, 2013 /CNW Telbec/ - Despite powerful science and great
talent, financing for Canadian biotechs was flat in 2012. That means
companies must boost their focus on efficiency and results if they hope
to attract new investment, according to results from Ernst & Young's 27th annual biotech industry report.
"The focus on efficiency continues to be a huge challenge for Canadian
biotech companies in the current business environment," says Mario
Piccinin, partner at Ernst & Young. "While total financing essentially
remained flat in 2012 at $US733m, venture funding was down by 60% to
Ernst & Young's Beyond borders: matters of evidence report reveals that despite a clear recognition of the importance of
demonstrating value, many biotech companies are investing relatively
little to gather the sort of evidence that will be critical to their
Piccinin explains: "The other challenge is the move to outcomes-focused,
evidence-driven health-care systems around the world. Strategic and
financial investors want evidence that will be compelling to the
ultimate payers. Canadian biotech companies need to address this
challenge or they'll continue to struggle for financing."
Other Canadian highlights from the global report include:
No IPOs again in 2012.
Public companies' R&D expenditures fell 12% in 2012 to US$405 million.
Revenues were essentially flat from 2011 at US$619 million.
The number of public companies in Canada decreased by 7% to 63
Overall employment in the sector also fell by 5% in 2012.
Companies in Quebec received 70% of total venture funding.
The total breakdown by province is as follows:
British Columbia: 37% of total financing, with US$270 million
Ontario: 30% of total financing, with US$219 million
Quebec: 23% of total financing, with US$169 million
Alberta: 6% of total financing, with US$47 million
Other provinces: 4% of total financing, with US$28 million
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SOURCE: ERNST & YOUNG
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