Biotech stakeholders aren’t just excited about the current state of biotech — they are already betting on its future prospects.
After a down couple of years in 2022 and 2023, 79 percent of respondents to Cure's Ready, Set, Growth! Biotech Benchmark Report 2024 survey said they foresee the biotech industry growing in the next year.
“Industry has been in a downturn the past few years, but there have been some major shake-ups that have recently begun to cause major transitions and interest,” one respondent said, “especially GLP-1 drugs and Alzheimer’s treatments.”
“Funding is coming back,” another respondent said, “and the biotech industry is pretty resilient.”
Policy as a Future Disruptor
No matter how resilient the biotech industry is, it is prone to disruption — and there are many possible avenues for it to come down. We asked respondents what they foresee disrupting biotech the most in the coming year: policy or technology.
While 41 percent of respondents predicted the biotech industry will be disrupted by technology, another 40 percent said it will be disrupted by policy, and 19 percent said they don’t foresee disruptions from either factor.
Multiple respondents mentioned that drug pricing constraints, through policy or other means, could continue to affect the entire biotech and pharmaceutical sector. The outcome of the 2024 presidential election could also have an impact on the biotech industry, one respondent noted.
Survey respondents were also asked about the BIOSECURE Act, currently still in Congress, and their opinion on whether or not passing the Act will have a positive or negative impact on the biotech industry.
Notably, 28 percent of respondents said the BIOSECURE Act would have an “extremely” or “somewhat” negative impact on the American biotech industry, while 35 percent of respondents said that passing the Act would have no effect. And 38 percent said that the BIOSECURE Act would have a “somewhat” or “extremely” positive impact on the American biotech industry.
Those against the passage of the BIOSECURE Act felt limiting partnerships with Chinese companies would stifle innovation and slow progress. Several respondents noted that passage of the Act might require on-shoring more American biomanufacturing, which could take time. But proponents of the BIOSECURE Act said the end result could be a net benefit for Americans.
“If the desired outcome takes place, this will have a positive impact by protecting American patient data and taxpayer dollars, while pouring funds back into the funding of biotech in the states,” one respondent said.
Opportunities for Hurdles and Opportunities for Growth
Despite new policies and technologies threatening to change the shape of the market, there are other hurdles for biotech companies that remain unchanged. The survey asked respondents about the top hurdles for the biotech industry as a whole, and the responses will be familiar to anyone in the space.
They include:
Securing enough funding to last through a potentially lengthy drug or product development cycle.
Going through the regulatory approval process.
Finding investors.
Recruiting for, funding and conducting clinical trials.
Survey respondents were also asked what would make the biggest impact in terms of growth in the biotech market right now. They replied:
More interest from other investors.
An overall improvement in the economy.
More money from the federal government.
