BIOPHARMA GROWTH MARKETS OF THE FUTURE

It is imperative that start-up biopharmaceutical companies have sufficient revenue to continue their expensive R&D programs, Datamonitor stresses, in a new report entitled World Biopharmaceuticals, Growth Markets for the Future. Without revenue from marketed products, these companies rely for funding on contract revenues from large, established, often prescription medicine companies.

The other main source of funding is financial institutions, and Datamonitor notes that such institutions in the USA have been reducing their ownership of biopharmaceutical stocks. The main reasons for this reduction are:

- uncertainty surrounding the biopharmaceutical sector; and