Written by Kevin Hampton, Director of Marketing, Kineticos
With fielding having closed for the Q2 Biopharma CEO Confidence Index on June 30, and the results scheduled for release in a couple weeks, I’m very curious to see how confidence levels have shifted since Q1.
To recap the first three studies, the Q3 2015 results indicated that biopharma1 CEOs were confident in future growth of the industry and their business prospects. Confidence dipped in Q4 of last year, which we attributed to the steep decline the capital markets experience over the latter half of 2015. Then, despite a horrific start to the NYSE in 2016, the Q1 2016 results indicted that overall confidence stabilized.
Out of the 6 business indicators measured in the Biopharma CEO Confidence Index, only one, deal landscape, declined significantly from Q3 to Q4 of 2015 and then again in Q1 of this year. Will deals such as Pfizer’s $5.2B acquisition of Anacor be enough to boost confidence? How much will a blockbuster deal outside of the life science industry such as Microsoft acquiring Linked In for $26.2B impact confidence in the deal landscape?
During the 9 months we’ve been surveying biopharma CEOs, we witnessed valuations go from near an all-time high to as low as they’ve been in 2 years. This ebb and flow in the capital markets was reflected in a shift in focus among biopharma CEOs away from partnering and towards advancing their pipelines. CEOs are likely waiting for valuations to make a resurgence prior to re-shifting their focus back to partnering.
1To date, CEO respondents have primarily been biotech CEOs
Kevin Hampton, Director of Marketing, leads Kineticos’ marketing efforts and is focused on building a brand that reflects Kineticos’ deep life science expertise and passion for improving patient outcomes. Mr. Hampton is responsible for the strategy and execution of Kienticos’ thought leadership and lead generation programs and also supports the sales function within Kineticos to ensure objectives remain aligned.
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