TLDR:
Biotech funding is expected to recover in 2024 according to GlobalData, despite challenges in private venture financing and macroeconomic pressures. Healthcare professionals are cautiously optimistic and see potential growth and innovation in the sector.
Article Summary:
The biopharmaceutical industry is anticipating a recovery in biotech funding in 2024, as indicated by GlobalData’s Thematic Intelligence report. Despite a decline in private venture financing and macroeconomic pressures, healthcare professionals remain optimistic about the industry’s future.
In a survey conducted by GlobalData, 44% of healthcare professionals worldwide expressed optimism or very optimism about the recovery of biotech funding in the next 12 months. This positivity comes after a significant downturn in private venture financing in 2023, which saw a decline of 43.2% compared to the previous year.
Ophelia Chan, Business Fundamentals Analyst at GlobalData, highlighted the impact of macroeconomic pressures on investor caution, leading to a focus on existing portfolios rather than new investments. Despite this, biotechs are exploring alternative funding avenues, with enhanced industry partnerships and government grants being favored measures.
In Asia-Pacific, government incentives or grants are preferred over private venture capital investors to address the downturn in biotech funding. In the US, NIH grant funding for private companies increased, emphasizing the importance of government support in bridging investment gaps.
Chan notes that despite the challenges faced by private biotech funding, venture capital has continued to support innovation in the sector. With VC funding showing signs of returning to pre-pandemic levels and the availability of alternative capital sources, the outlook for biotech investments appears promising.
