Biotechnology

Beyond the recession: Looking to biotechs for growth and profit.

Biotechnology companies that survive the recession's cash squeeze will find themselves well-positioned for growth in the next decade. To replenish a shrinking drug pipeline, Big Pharma has turned increasingly to the innovation that biotechs provide —particularly to targeted biologics, which hold greater profit potential than traditional small-molecule medicines. Many pharma companies have ramped up acquisitions, in-licensing and partnerships with biotechs. Recent promises of increased government investment in basic biomedical research also portend robust sector growth.

The rapid advancement of personalized medicine made possible by genomic research and more affordable genetic mapping has opened new diagnostic and treatment pathways. These developments have encouraged investors to funnel capital into specialty drug development. Although the R&D cost for a biologic drug today approaches $1.2 billion, the potential annual return on investment could easily exceed that amount. Pending legislation to allow follow-on (generic versions) of biologics could, however, shorten patent life and threaten sector profitability.

How we can help you

We help biotechnology companies:

• Identify private and public funding sources
• Explore risk-sharing opportunities and partnerships
• Pursue mergers and acquisitions

If your company is looking to be acquired, we can help you value assets, find a buyer, and complete the transaction. If you are seeking out-licensing opportunities or considering divestiture of non-core business lines, our extensive transactional experience can guide you.

To help you survive lean economic times, our advisory professionals can help you:

• Map out performance-improvement and cost-reduction strategies
• Assess your spending practices
• Analyze working capital
• Navigate debt-financing opportunities

PwC's professionals also can help you target improvements in research and development, sales and marketing, supply chain, IT and shared services.