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About MVM / Investing In Life Sciences
Investing In Life Sciences
The environment for emerging life science companies
Many factors contribute to the investment attractions of emerging life science companies:
- Patent expiries and pipeline productivity issues mean that large pharma is looking to biotechnology companies to fill productivity gaps and bolster existing franchises.
- Although healthcare expenditure already represents over 15% of US GDP, there remains considerable unsatisfied demand for healthcare products, driven by increasing consumer expectations and demand for life-style therapeutics.
- The population is ageing, driving up healthcare expenditure per capita.
- There remains a lack of safe, effective treatments for many diseases. Furthermore, for some well-tested therapies, treatment rates are low.
- Healthcare costs are increasingly of concern to payors. Innovation in healthcare is the best hope for improving productivity of healthcare delivery.
When it comes to life science research productivity, Europe has four of the five top ranked countries. The UK is one of the leaders in research productivity per dollar spent. Europe is also a major centre for pharmaceutical development and is home to four of the world's top five pharmaceutical companies.
With improving equity markets and a maturing biotech sector, successful companies can be built upon Europe's research base to generate attractive returns for investors.
Pharmaceuticals and medical technologies are global businesses. Regardless of location, companies must strive to attain the standards of, and be benchmarked against, the best competition globally.
