E-Mail
IMAGE: Shareholder value at the end of 2016 compared to IPO for biotech companies and paired controls completing IPOs 1997-2016. Net growth in shareholder value, and the fraction of companies generating. view more
Credit: Center for Integration of Science and Industry, Bentley University
Investing in biotech companies may not entail higher risk than investing in other sectors, according to a new report from Bentley University s Center for Integration of Science and Industry. A large scale study of biotechnology companies that completed Initial Public Offerings (IPOs) from 1997-2016 demonstrates that these companies produced more than $100 billion in shareholder value and almost $100 billion in new value creation despite a failure rate greater than 50%. The study compared the financial performance and economic value created by these biotech companies to non-biotechnology controls that had similarly timed IPOs.
E-Mail
IMAGE: Estimated probability (Kaplan-Meier) of a company with IPO from 1997-2016 having at least one product approved by year after IPO for small molecules versus biologicals. view more
Credit: Center for Integration of Science and Industry, Bentley University
A large scale study from Bentley University of the biotechnology companies that completed Initial Public Offerings from 1997-2016 estimates that 78% of these companies are associated with products that reach phase 3 trials and 52% are associated with new product approvals. The article, titled Late-stage product development and approvals by biotechnology companies after IPO, 1997-2016, shows that these emerging, public biotechnology companies continue to have a role in initiating new product development, but are no longer distinctively focused on novel, biological products.