Biopharma Industry Review: A Year of Challenges and Changes in 2023
The biopharma industry experienced a challenging year in 2023, marked by a significant decrease in funding and a high number of bankruptcies. According to PitchBook, the industry raised approximately $24 billion in 2023, a stark decline from the higher funding levels of the previous three years, which saw annual figures of $38.1 billion, $53.9 billion, and $36.9 billion, respectively.
Exit activities also slowed down, with only 84 deals totaling $17.9 billion. This decrease was largely attributed to fewer initial public offerings. The sector also witnessed the impact of a biosimilar onslaught and a steep patent cliff, with several drugs losing exclusivity by the year's end.
Adapting Strategies Amid Economic Pressure
Faced with this challenging business environment, companies across the biopharma sector have been compelled to rethink their market strategies and cut costs. This has led to reductions in investments in research and development (R&D), streamlining of product pipelines, and widespread layoffs.
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