WEEKLY INTELLIGENCE REPORT
BY MIDA SAN JOSE
(27 JUNE – 1 JULY 2005)
Beyond Borders : Global Biotechnology Report 2005
Nearly 30 years after the first biotechnology company
opened its doors, the sector is reaching a new level of
maturity and globalization. In 2004, the global biotech
industry posted impressive growth and raised record
amounts of venture capital according to a report on ‘Beyond
Borders : Global Biotechnology Report 2005” released by
Ernst & Young in June 2005.
The biotechnology industry is ‘coming of age’ globally.
The report shows the expansion of the industry beyond
geographic, industry and product borders, the number
of alliances between biotech companies with each
other, and the growth in revenues and move toward
profitability of many companies.
The biotech industry is maturing in the United States
and gaining momentum in Europe. Biotech hotbeds are
emerging in Asia-Pacific region, particularly Japan,
India and China. Korea and Singapore are creating
niches in areas such as stem cell research and
manufacturing, helping the global industry meet
challenges such as restrictive public policy and drug
There was a 14% increase in the number of cross-
border alliances, from 421 in 2003 to 408 in 2004.
Countries and regions in all parts of the world are
aggressively seeking to attract biotech companies. In
2004, 60% of alliances formed were between biotech
companies not biotech & big pharma, which had been a
trend in the past.
Several nations list biotech as a key focus industry.
Specifically noted were regulatory systems changes in
countries such as China and India and Singapore’s
progress toward achieving its goal of becoming a world-
class hub for biomedical manufacturing
While 2004 was the best year ever in terms of U.S.
firms receiving venture capital, obtaining financing is
still difficult for companies with products in early-stage
development. Regulatory hurdles and standardization
of requirements across borders is another challenge.
Biotech companies raised US$16.9 billion in capital in
the U.S and US$3.4 billion in Europe, surpassing 2003
totals. Yet, the industry is challenged by disappointing
IPO evaluations, and early-stage companies struggle to
find the capital they need to thrive.
MIDA San Jose
Weekly Report (27th June-1st July 2005)