Moreover, a 46% drop in venture financing deal value for the U.S.-based biotech companies was noted, from $7.8 billion in Q1 2021 to $4.2 billion in Q1 2022, according to GlobalData’s Pharma Intelligence Centre database. In addition, Mariam Shwea, MPH, Business Fundamentals Analyst at GlobalData, commented on the state of the biotech sector, noting that prices were inflated in 2021 and that now, VCs need to be more selective.
Oncology takes center stage
Oncology remained the leading interest area where funds were channeled, raking in $1.5 billion in Q1, which is still a far cry from the $4.5 billion seen in Q1 2021. Meanwhile, immunology is catching up to oncology, with $1.25 billion in funding for Q1 2022 versus the $1.5 billion seen in Q1 2021. According to Shwea, a shift towards selective investments into early-stage companies has been seen in this bear market. She also added: Finally, the Covid pandemic likely led to the rise in funding for the biotech industry last year, with various early-stage biotechs being priced exorbitantly. With the stock prices falling for the better part of 2022, a more selective approach by both VCs and investors will separate the wheat from the chaff. Buy stocks now with Interactive Broker – the most advanced investment platform Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
