Report: Biotech 2010

The area most likely to see strong growth in the next five years involves collaborations between large and small companies. Such collaborations were worth $13 billion in 2005, will increase to $14.4 billion in 2006 and reach $22 billion in 2010. Small biotechnology and device companies provide innovative drug candidates and other products to larger companies wishing to fill pipelines or expand into new therapeutic areas.
Today, venture capitalists prefer an overall strategy of investing in companies with late-stage projects. Therapeutic agents that have reached Phase II or Phase III clinical trials are most attractive. Venture capital for biotechnology amounted to $3.7 billion in 2005 and will reach $3.9 billion in 2006. This will increase $4.6 billion in 2010.
Factors influencing the growth of the life sciences market include the continuing investments of national governments, the push by big pharmaceutical companies to fill their blockbuster pipelines, and efforts by small biotechnology companies to become bigger companies. As all of these groups continue their efforts, they will, in turn, drive the development of new instruments and new technologies.