Btobioinnovation.com 

Author: Jean-Claude Muller, 穆卓Executive Editor at BtoBioInnovation  jcm9144@gmail.com

SPECIAL REPORT #22.9

European Biotechnology Companies Valuation in decline.

The first quarter of 2022 has been a difficult time for the European Biotechnology companies which saw their overall share value decline massively. According to a report published in the April 2022 issue of MedNous, the decline is estimated at 19.7%. Recent discussions with European Healthcare Fund managers confirm this figure. The underlying causes are multiple and diverse: the war in Ukraine, rising inflation, global supply chains deficits, slowing down in company financing, very low number of Initial Public Offerings (IPOs), , little M&A activity. Over the last years, large pharma companies have paid billions of dollars to access innovative companies and products. Several of the most highly valued deals have missed their milestone targets and thus significantly reduced the promised value.

Although large pharma companies are still very rich in cash, there is now a strong probability that, during several months, these companies will be focusing their investment in specific therapeutic sectors.

Rising significant funds for European biotechnology companies will be very challenging for the months to come.

The following table published by MedNous shows the quarterly change in market capitalisation of 56 European companies listed on Nasdaq. Only six of them have a positive change. Amongst the ones with a market cap of one billion or more, Belgian Galapagos, with an increase of 12.08% and Jazz Pharmaceuticals of Ireland, with a 22.73% increase, are the only outliers.

 Paris, May 21, 2022

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