Funding Biotech Innovation: How to Attract Investors

The biotech industry posted record financing, deals, and M&A numbers in 2020 and 2021, spurred in part by the swift and successful development of COVID-19 vaccines. Despite this favorable funding environment, the industry faces ongoing challenges. The cost of developing new therapies continues to climb and fewer than 8% of product candidates make it from Phase I to market.

In this episode, biotech experts – Jim Anthony and Mike Davitian, Vice President, Health Advances – share findings from a proprietary research report on the biotech investment landscape. Find out what investors are looking for when evaluating a company, how to attract investors, and what to look for in a partner to help guide your business strategy to achieve a strong competitive advantage.

Visit www.Parexel.com to access the full report, Five Ways to Attract Early-Stage Investors.

Show notes:

[0:49] There were record financing and deals in the biotech industry in 2020 and 2021— How has COVID-19 played a role in innovation and increased investment in biotech?

[2:40] How do you think the development needs of biotech customers evolved in this environment?

[6:58] One of the five strategies identified in the report to help emerging companies differentiate their value proposition is “Expand your definition of unmet need”. How can companies do that?

[10:59] The second strategy identified in the report is “Develop a strong plan, then de-risk it”. How can companies do that?

[13:34] Recent advances in drug development tools and technologies can lower risk and reduce the time to bring a new product to market. How can companies accelerate development with innovation?

[15:45] What did you learn from this research about what biotechs need to consider when looking at potential investors?

[18:00] The final strategy and the report is “Reveal your exit strategy”. Why is that important?

[19:18] For biotechs, success or failure hinges on getting their strategy right and knowing how to effectively articulate their value in looking for a partner to help guide that strategy. How could Parexel Biotech and Health Advances support companies?

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