The biotech sector in Europe at present is witnessing a generous flow of investments from several quarters. This increased funding has given noteworthy impetus to the entire structure of the biotechnology sector in Europe. Numerous biotech firms in Europe are raising funds via public offerings and even secondary offerings. The rates prevailing in the market have exceeded business expectations, thereby marking a whole new beginning in the current century as regards the expected rate of return that the European biotech sector is anticipated to yield.
But which area of biotechnology will witness the injection of these funds in the European market? It is the area of immunotherapies which is expected to undergo phenomenal development and in-depth R&D. Europe’s biotech sector is anticipated to expand and prosper at a robust rate, a factor sufficient to encourage companies and the public sector to invest voraciously.
The Impressive Steadfast Performance of the Biotechnology Sector
Amidst the nagging economic crisis in the euro zone, the biotech sector has managed to steer clear of the adverse impact of the same. Also, the year 2000 highlighted the public financing position of the European biotechnology sector with it having raised close to 3 billion euros via initial public offerings and an additional amount of almost 2.5 billion euros via other miscellaneous offerings. The earlier week saw European biotech firms raising funds that exceeded US$1.5 billion in initial public offerings. Recently, Celyad SA, a Belgium-based firm specializing in cell therapy received a fund amount worth US$100 million via IPO.
What’s making this Sector Earn the Big Bucks?
The funds being received by biotechnology firms in Europe are mainly used in developing technologies and mechanisms that enhance the capacity of the human immune system to fight against infections and diseases. Developing such a technique of fighting anomalies is a very novel approach towards treating serious diseases such as cancer because the treatment of such diseases hitherto relied mainly upon the action of antibody-therapies, which only acted on the surface cells.
Any type of novelty or innovation in the biotechnology sector acts as a driving force for institutions to invest and allot funds to. With a bright investment scenario and robust performance of Europe’s biotech sector, the future seems bright with the investment trend continuing in the forthcoming years as well.
U.K.-based Immunocore, a leading biotechnology firm received by far the highest funding from investment management companies such as Eli Lilly and Co. to the tune of almost US$320 million. The company also disclosed that the funds would be mobilized towards ImmTACs, which the company defines as the next-gen cancer treating medicines with the ability to fight tumors which cannot be treated by antibody drugs. Senior officials have stated that this company being the recipient of such huge funds indicates the faith that the public sector and investment bodies have on endorsing such technologies. Also, the funding will play a pivotal role in further research activities pertaining to the IMCgp100 which is a highly advanced drug that is administered in treating melanoma.