Michael Altorfer, CEO of the Swiss Biotech Association, would have loved to present the strong figures registered by the biotech sector, at the Swiss Biotech Day. Due to the coronavirus pandemic, the industry meeting planned in Basel was rescheduled to mid-September – and the Swiss Biotech Report was presented online.
The Swiss Biotech Association published the report in collaboration with EY and seven other partners. The bottom line: Embedded in one of the world’s most comprehensive life science ecosystems, Swiss biotechnology was able to score points again last year with growing sales and a strong financing environment.
Find out more information about the Swiss biotech sector and read the latest financial headlines with our companion app, Born2Invest.
Investments in research and development increased by 7%
The total number of employees in the 250 biotech companies and 62 supplier companies increased by around 5% to 15,070. In addition, 40 start-ups were founded. Investment in research and development climbed by around 7% to around $2.06 billion (CHF 2 billion).
The Swiss biotech industry generated total sales of $4.96 billion (CHF 4.8 billion) in 2019, $825 million (CHF 800 million) more than in the previous year. This increase in revenues was mainly driven by lucrative collaboration and licensing agreements for AC Immune, Basilea and CRISPR Therapeutics. In addition, biotech companies that are already commercializing products and services generated higher revenues.
The importance of the industry to the country is underpinned by exports of pharmaceutical and biotechnology products. In 2019, they accounted for about 40% of the total Swiss export volume. “The great strength of the Swiss biotech sector is its continuity. There is constant growth and we continue to succeed in attracting specialists and young talents to Switzerland,” Altorfer emphasised.
The biotech sector strengthened its position as an attractive field of financing
In 2019, $1.24 billion (CHF 1.2 billion) was invested in private and listed biotech companies, significantly less than in the previous two record years, but still above the $1.03 billion (CHF 1 billion) mark. The sum was divided almost equally between listed and private companies.
Thanks to new specialized funds established in Switzerland, the ecosystem was able to further strengthen its position as an attractive field of financing, according to the authors of the report. Examples are Medicxi, ND Capital, Pureos Bioventures, and Bernina BioInvest. At the same time, the number of foreign funds has also grown steadily. The only exception was the IPO of Swiss biotech in 2019. “The financing landscape is now so broadly based that the pressure to go public has decreased,” said Altorfer.
The Swiss biotech ecosystem has become even more diverse, Altorfer said. “Further gaps in diversity have been closed and capacities expanded.” For example, multinational biopharmaceutical companies such as Biogen, CSL Behring, Novartis, and Merck have invested heavily in expanding production capacities for the increasing number of approved complex biologics and cell therapies. In addition, companies such as SOPHiA Genetics, BC Platforms, Genedata, Insphero, GenomSys, and SimplicityBIO are increasingly using the possibilities of artificial intelligence.
More than 3,000 patent families that combine artificial intelligence and biotechnology
“A new segment of companies is developing in this field, which accesses and analyzes data pools and thus substantially changes clinical development and the design of studies,” explained Altorfer. Patent analysis for the Swiss Biotech Report showed how dynamically the scene is developing. According to the report, there are already more than 3,000 patent families that combine artificial intelligence and biotechnology.
Of course, the current corona crisis was also a topic at the presentation of the industry figures. According to Altorfer, two dozen Swiss biotech companies are investing resources in the development of diagnostics, therapies, or vaccines to combat the coronavirus pandemic. At the same time, the restrictions currently in place in preclinical and clinical projects are delaying data collection and timetables.
A further challenge for the Swiss biotech sector is that around 80% of companies do not have access to emergency aid loans, as companies have to show sales figures for these. However, this is precisely where politicians are working out solutions.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in transkript, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
Virginia adult-use cannabis law goes into effect on July 1st
Virginia has recently legalized the use of cannabis. Two amendments to the cannabis bills SB 1406 and HB 2312 were...
Open finance bridges the gap between debit and credit: Finerio
The lack of publication of the secondary rules delays the adoption of this model contemplated in the Fintech law. The...
AI could reduce greenhouse gas emissions by 10% in ten years
A Boston Consulting Group survey explains that applying AI to processes with the highest consumption works even after just one...
The demand on the futures markets influenced by speculative selling
Rice was a little lower on Friday and for the week on what appeared to be speculative selling tied to...
Burkina Faso: Japan grants $6.5 million for access to health, education for the most vulnerable children
The grants follow a partnership signed between the Government of Japan, the Japan International Cooperation Agency (JICA) and UNICEF Burkina...
Cannabis7 days ago
UN fears imperfect decriminalization of cannabis in Mexico
Business7 days ago
Gold vs. Bitcoin: The 21st Century Debate
Crowdfunding7 days ago
Profit Farm prepares the third round of capital increase and two new campaigns
Featured7 days ago
AXA IM launches its first US High Yield low carbon fund