Cash cravings

Results of BioCentury's 13th survey of funding needs for European biotechs

BioCentury's 13th annual European Iceberg survey foresees record financing demand, driven on the public side by higher burn rates and the number of companies joining the group via IPOs, and on the private side by the addition of companies meeting the survey criteria.

The survey aims to identify the underlying funding demand by biotechs in Europe, plus Israel, over the next three years. It arrives at this aggregate figure by polling private companies and extrapolating capital needs from the financial reports of public companies. The survey only includes companies that have reached the clinic or the market, and profitable publicly traded biotechs are excluded.

This year, the total three-year financing demand is a record $6 billion, up 5% from $5.7 billion in the 2014 survey.

On a euro basis, the increase in demand is more pronounced, with this year's survey projecting €5.5 billion in capital needs, up 32% from €4.2 billion last year. The difference is driven by the significant devaluation of the euro vs. the dollar in the first quarter following the extensive quantitative easing program announced by the European Central Bank in January. The weakening euro primarily affected the estimated demand by private companies polled from February to May.

The estimated three-year financing need by private companies reached $5.1 billion, about the same as last year (see "Private Demand," page 9). In euros, the private demand is €4.7 billion, up 26% from €3.8 billion.

Meeting this demand will prove challenging, despite the strong

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