The life science industry is an evolving ecosystem and defined by the network of interactions between biopharmaceutical companies, services firms, and diagnostics companies as well as the patients, providers, payers, and regulators that influence market dynamics.  Within the ecosystem, the biopharmaceutical segment operates in a relative state of conflict.  While the path of bringing new products to market is highly regulated, the industry also weathers an ongoing series of changes from one year to the next.

Kineticos views its role in the biopharmaceutical sub-sector as two-fold:

  1. To help emerging biotech companies with their most challenging issues as they develop life changing therapies
  2. To provide life science leaders with valuable and original market insight that can be utilized to make more informed business decisions

To support our second role, Kineticos recently surveyed 75 biopharmaceutical professionals and inquired about their confidence levels in several areas related to the industry.  Below is a summary of the research findings.  For a more comprehensive report, please click here

The research indicates that overall confidence in the biopharmaceutical industry is strong heading into Q4.   Figure 1 illustrates that confidence today vs. confidence in 18 months is similar, which is a good sign for our volatile sector.

Figure 1

In regard to what is driving confidence, 44% of respondents indicated their confidence was driven by the Growing Life Sciences Market (24%) or the Favorable Regulatory Landscape (20%).  This bodes well for innovators and also speaks volume to the job FDA Commissioner Gottlieb has done since he took the reins.  Figure 2 provides some granularity into what is driving confidence among biopharmaceutical professionals.

Figure 2

Regardless of confidence levels and/or drivers, we operate in a high-risk environment.  These risk factors, as identified by the respondents, are detailed in Figure 3.  It’s interesting that an Unfavorable Regulatory Landscape was the most popular answer at 27%.  Given regulatory appeared toward the top on both the confidence driver and risk lists, we believe this is an area that is highly dependent on company’s specific therapeutic focus, recent interactions with the agency, and near-term initiatives.

Figure 3

In addition to the broad industry confidence level, we asked respondents to provide us with their confidence as it relates to 2 critical success factors for biopharmaceutical companies – Capital Markets and Deal Landscape.  Below (Figures 4 & 5) is a look at how each of those areas faired in the study.  With scored hovering around 5-6 (out of 10), confidence is clearly lacking in both of these areas.  This may be reflective of our respondent profile as smaller companies (59% of respondents represented companies with a market cap of less than $1B) are frequently in fund-raising mode and on the sell side of deals, which are uphill battles and have the tendency to exhaust previously confident companies/individuals. It will be interesting to watch these numbers evolve over the next few studies.

Figure 4

Figure 5

Finally, we inquired about the hot topic of Immuno-Oncology (Figure 6).  We kept it simple and asked if each respondent believed the attention I/O is getting is good or bad for the biopharmaceutical industry.  53% indicated the attention was good and 20% indicated that it was bad for the industry while 27% did not offer an opinion.  Kineticos Managing Director and Oncology expert, Steve Buckanavage, will offer his thoughts on these figures in an upcoming article.  Stay tuned…

Figure 6