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12:00 AM
 | 
May 23, 2005
 |  BioCentury  |  Finance

Clinical development devours money

BioCentury's 2005 survey of Europe's financing needs shows that clinical stage biotechs will need about $3.2 billion - $2.4 billion for private and $764.9 million for public companies - to support operations until the end of 2007. The study also reveals the rising demand for money from private Phase III companies. On the public side, overall demand has declined, but companies with marketed products continue to require more funding.

The number is more than double the financing needs revealed in BioCentury's first European survey in 2003, when clinical stage companies reported they needed $1.5 billion to have three years of runway through the end of 2005.

Last year was certainly a good one for raising money in Europe on both the private and public fronts. Money invested in all public companies was up 55% to $2.6 billion from 2003, while private companies received $1.1 billion in 2004, up 30% from the prior year (see "Public vs. Private").

Accounting for the relative drop in the value of the dollar versus the various European currencies over the course of 2004, public companies raised $2.5 billion in adjusted dollars, up 49% from 2003, and private companies raised $1 billion, up 20% from 2003.

In the key clinical development space, 38 of the 98 private companies in this year's survey have raised a total of $1.1 billion since the start of 2004, with $512 million going to those that are now in Phase II development.

As a...

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