Beyond Borders: EY Biotechnology Report 2024

Biotech innovation is robust; when will financing return?

The 34th edition of our annual Beyond Borders biotech outlook report sees US and European biotechnology companies facing an imminent recovery in the operating environment. Companies expect fiscal policy to shift toward lower interest rates within the next six to 12 months, potentially triggering a recovery in biotech investment.

Biotech’s underlying innovation engine remains robust; the pharmaceutical ecosystem’s innovation engines are still thriving, as new modalities and exciting scientific innovations continue to drive the sector forward. While many emerging biotechs are still struggling, there are positive signs of a thaw in the financing and dealmaking environment for the biotech industry.

The Beyond Borders data shows that while some biotechs are flourishing, others are facing scarcity. On one hand, innovation is thriving. On the other, only those companies with a proven management team and strong clinical data (or a nearly marketed asset) have been able to attract the interest of Big Pharma partners and venture capital (VC) investors. The statistics below demonstrate just how divided the sector is as it waits for the pendulum to swing back toward times of plenty.