Demand disequilibrium

Results of BioCentury's 11th survey of funding needs for European biotechs

BioCentury's 11th annual European Iceberg survey sees funding demand continue to fall for a shrinking number of public clinical-stage biotechs in Europe, while the capital demanded by the growing cadre of venture biotechs continues to outstrip the supply.

The Iceberg survey aims to identify the underlying demand for finance by private and public biotechnology companies in Europe, including Israel, over the next three years of operations. It includes only companies that have reached the clinic or the market, and excludes discovery and preclinical plays. It also excludes profitable publicly traded biotechs.

For both private and public companies in the clinic and beyond, the overall financing needed to support operations through the end of 2015 is projected to be $5.5 billion, below the $5.7 billion in last year's survey (see BioCentury, May 21, 2012).

Overall demand declined due to the shrinking cohort of unprofitable publicly traded biotechs (see "Europe's Total Demand").

This group's three-year financing demand is estimated to be $906.5 million vs. $1.1 billion in last year's survey, as the number of companies has declined by 9% to 77 from 85. In fact, the number of companies in this group has not been this low since 2006, when there were 68 unprofitable public biotechs in the clinic and beyond.

For clinical stage private biotechs, the aggregate financing needed to support three years of runway is projected to be $4.54 billion vs. $4.59 billion in last year's survey. The total number of private companies in the survey jumped to 255 from 235, and the number of companies advancing lead programs into Phase II continues to grow.

At the same time, the average demand per company likely

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