G. Steven Burrill’s annual book on the “State of the Industry” has been an integral part of the biotech industry’s view of itself.
BIOTECH 2012: Innovating in the New Austerity
Considered required reading by top executives in the life science industry, this book is an invaluable, one-stop resource to make sense of the changing landscape.
Innovating in the New Austerity:
- Provides analysis of the life sciences industry with data, graphs, and industry highlights including new product approvals, advances in technology, and details of fi nancing and M&A transactions
- Examines how pharmaceutical companies are reinventing themselves to innovate for less in this era of austerity
- Tracks the convergence of wireless, mobile, and Internet technologies transforming the economics and delivery of healthcare worldwide
- Explores the impact of graying populations on healthcare around the world and how regenerative therapies may slow or reverse the diseases of aging
- Gives a detailed view of the rise of emerging markets and how these economies are moving from being centers of low-cost manufacturing to world class innovation
- Explains the challenges biofuels developers face in expanding their production to commercial scale
- Analyzes the global interplay between business, policy, regulation, and reimbursement
Comprehensive, unparalleled coverage of key trends makes Innovating in the New Austerity a critical resource for life sciences professionals.
G. Steven Burrill has been involved in the growth and prosperity of the biotechnology industry for more than 45 years. In 2011 he received a lifetime achievement award from Scrip Intelligence. An early pioneer, Mr. Burrill is one of the original architects of the industry and one of its most avid and sustained developers. He is currently Chairman of AliveCor, and serves on the boards of directors of Catalyst Biosciences, Depomed, NewBridge, Novadaq, Targacept, and XDx. Previously he served as Chairman of the boards of BioImagene, Abunda Nutrition and Pharmasset. Prior to founding Burrill & Company in 1994, he spent 28 years with Ernst & Young, directing and coordinating the fi rm’s services to clients in the biotechnology, life sciences, high technology, and manufacturing industries worldwide.
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Innovating in the New AusterityR&D spending by the industry grew predictably year after
year, but that was no longer the case in 2011 as several drug
companies sought to cut R&D expenses. In part, such a move
was in response to the long anticipated drop in revenues
Big Pharma faced with the loss of patent protection on
some of the industry’s best selling drugs. But it also was an
acknowledgement for many that the R&D spending had failed
to yield an adequate return on investment.
Gray MattersAround the world, life spans are increasing and populations
are aging. This demographic shift, presents opportunities
for drug and device makers, as well as significant challenges
for healthcare systems and payers. While policy makers
across the globe have taken steps to look for ways to restrict
spending, others are turning to innovative approaches
that can keep people healthy and allow them to live
A Watched Pot Begins to BoilAs impatience seemed to grow among scientists and the
public over the slow arrival of personalized medicine, the FDA
approved a spate of new personalized therapies, studies touted
the economic benefits of new predictive tests, the pipeline
of powerful new targeted therapies based on the genetics
underlying diseases grew, and the cost of sequencing continued
its rapid decline moving medical science closer to an ever greater
knowledge not only of disease, but also of wellness.
Connected to HealthThe convergence of information technology and the life sciences,
coupled with ubiquitous connectivity, is revolutionizing the way
healthcare is accessed and delivered. Today, a new generation
of companies is harnessing information and communication
technologies not only to improve care, but also to help people
stay well. The phenomena will bend the cost curve of healthcare
through improved monitoring of chronic disease, and by enabling
people to change their behaviors in ways that keep them healthy.
In Search of DisruptionGovernments around the world are feeling pressure to control
healthcare spending. These pressures have only intensified
in the face of the global recession and the push for austerity
measures in many countries. Payers increasingly are demanding
demonstrations that therapies have value before they will pay for
them. Industry and its advocates, however, are concerned that
efforts to rein in spending will threaten innovation, which they say
is what’s needed to address the growing cost of healthcare.
A Balancing ActThere is a growing sense among life sciences innovators
that regulatory barriers in the United States have made
the process of bringing new drugs and medical devices
to market too unpredictable, burdensome, and perilous.
Finding new ways to balance risk and benefits will
be essential to maintaining the brisk pace of medical
innovation on which developed nations have come to rely.
The Rise of the BRICsAfter decades in which the United States, Europe, and
Japan represented the drivers of economic growth, the tide
has shifted to developing nations in Asia, Latin America,
and other parts of the world where a rising middle class
is fueling an economic boom. These new economic
heavyweights are targeted by the life sciences industry as
the source of sales growth in the coming years.
Scaling UpEnergy security and food security are the two main
drivers of an emerging bioeconomy. Innovative bioenergy
companies are addressing global challenges using the tools
of biotechnology and genetic engineering to improve crops
and develop bio-based fuels and chemicals that can replace
fossil fuels. These companies have proven their technologies
in the lab and are now advancing toward commercialization.
Buying InnovationAccess to innovation is driving M&A activity, as companies
embrace innovative products as the way to best grow in a
world where they will need to not only demonstrate safety
and efficacy, but value as well. As the industry seeks to
address its lack of R&D productivity, it is increasingly looking
outside its own walls to research and discovery deals that
lead to promising early-stage drug candidates.
Exit StrategiesThe life sciences continue to attract new ideas and people
dedicated to improving lives around the world. But
financing life sciences companies is changing as new deal
structures evolve to address the problems entrepreneurs
and investors face in the risk-averse and often volatile
financial climate that now exists.
Thoughts on InnovationIn the new austerity, innovation is needed not just in
the products we produce, but in the way we fund ideas,
conduct R&D, regulate our industries, and deliver care.
The challenge will be to leverage resources, operate with
capital efficiency, and delivery value. What we can’t afford
today, as we seek to address the health, food, and energy
needs of a growing world, is timidity in thought and action.
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Contents Biotech 2012