In this issue:
Good biocapital access – for a few
In an era when payers are increasingly also looking at the economic benefits a new therapeutic has to offer, biotechs have to prove not only safety and efficacy to regulators, but cost-effectiveness to reimbursers as well. Both factors are subject to due dilligence when it comes time to apply for financing. That's why convincing investors of the value of product portfolios – which are most often developed by biotech innovators – has become a complex task. Market forecasts by Prime Therapeutics/Blue Cross-Blue Shield predict specialty drugs will account for 50% of all drug costs by 2018 (up from 20% in 2009). But the most current Global Biotech Report released by Ernst & Young at the end of April says despite that promising future, just a few large biotechs are benefiting from financing.