The E&Y report on biotech used to be free, but now they seem to be charging $50.
Note the figure of $30 billion for capital raised in 2000, which I referenced on the new trickledown thread. Also it appears according to these figures that the entire biotech industry as of June 30, 2000 had a market cap less than that of Cisco.
Monday October 30, 8:28 am Eastern Time
Press Release
SOURCE: Ernst & Young LLP
Extraordinary Growth in Biotechnology Market Is Sustainable According to Ernst & Young's Millennium Report
Convergence of Life Sciences Triggers Public Interest and Financial Investment
PALO ALTO, Calif., Oct. 30 /PRNewswire/ -- Biotechnology will become this century's most dynamic industry -- affecting disciplines from agriculture to chemicals, drug discovery to computer nanotechnology -- creating platforms for new products and markets according to a just released report, ``Convergence: Ernst & Young's Biotechnology Industry Report, Millennium Edition.'' Ernst & Young LLP will unveil the new study at the CALBIO Summit on Tuesday, October 31, 2000 in San Diego, CA.
Ernst & Young reveals that innovations and a convergence in finance, market sectors, technologies and products, and public awareness are breathing new life into biotechnology stocks. According to the study, in the first six months of 2000, 19 companies went public raising $2.2 billion with an average of $114 million per initial public offering (IPO). In the same period, follow-ons for 27 companies raised an additional $7 billion. The Millennium report also reveals that advances in genomics are directly tied to a rise in biotechnology stock prices, spurring investment and IPO activity. This news is contrary to its last report in 1999 titled ``Bridging the Gap,'' in which Ernst & Young lamented that the market was severely undervaluing the biotechnology industry.
``For the full year ending June 30, 2000, market capitalization of the biotech industry was $353 billion, a 156 percent increase,'' states Scott Morrison, Ernst & Young's National Director of Life Sciences and an author of the report. ``In the calendar year 2000, the industry is certain to raise in excess of $30 billion -- more than three times the 'best-ever' record of just under $9 billion.''
Convergence Brings Innovation and Investment
Convergence -- the cross-industry spread of technology and market strategies -- is playing a larger role in the growth of the biotech sector and other industries than ever before. As noted in the report, convergence of the high technology and healthcare industries and with broader industrial sectors has led to a flood of new technologies, new company formations and new business models that have the potential to revolutionize the entire sector.
``In a meaningful way, the biotechnology industry is becoming an information science,'' added Morrison. The human genome project as well as the genomic and proteomic research efforts at academic institutions and biotechnology companies have generated vast amounts of data which will enable the drug discovery and development process as never before. Advances in computer technology have driven much of this progress with high technology companies now participating in the biotechnology revolution both as suppliers and through direct entry to specific markets.
``The biotechnology industry has become the intersection for convergence in the healthcare marketplace, helping to fuel our economy and accelerate the drug discovery process. As a result, new growth opportunities are created, while at the same time, improving the quality of life by bringing new medical therapies to the public,'' noted Morrison. As of June 2000, according to the Ernst & Young report, biotechnology companies had almost 300 products in pivotal trials with cancer, infectious diseases and neurology studies leading the way. Advances in genomics, proteomics and the drug discovery process should lead to an explosion in the pipeline in the next decade.
Regional Differences Exist
New England, the San Francisco Bay area and San Diego have the largest concentration of public and private biotechnology companies with several areas of the country having increasingly larger concentrations. The companies do, however, vary greatly in size and market capitalization. ``One thing of which we can all be certain is that biotech will continue to grow and affect our business ventures, our communities and our population. Those who can leverage and understand the opportunities at hand will discover unlimited possibilities,'' concludes Morrison.
To order a copy of ``Convergence: Ernst & Young's Biotechnology Industry Report, Millennium Edition'' at $50.00, call 800-SCOREEY (800/726-7339), code number O00254. (Note to Editor: first digit is the letter O, the second and third digits are the number 0). You can also go to Ernst & Young's Web site at www.ey.com/industry/health to gain additional information on the concepts and companies highlighted in the report.
SOURCE: Ernst & Young LLP
Peter |
