Difference between revisions of "Biotech Growth Rate outperforming classical pharmaceuticals"
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==Description:== | |||
Over the last years, the growth rate of biotech industry has by far outperformed the one of the classical pharma industry. This has not had a positive impact on the profitability of biotech as such – profitability of most classical pharma majors is still higher than the one of most biotech companies – but it has shown in the development of stock prices. Biotechnology stocks have outperformed the ones of classical pharma majors thanks to the hope for future profits. | |||
==Enablers:== | |||
• Hope for good profit margins | |||
• Hope for huge ROE | |||
• Potential for spectacular breakthroughs in Research. | |||
<br> | |||
==Inhibitors:== | |||
• Increase (instead of decrease) of R&D cost in biotechnology | |||
• Decrease in R&D costs for classical crugs | |||
• Entry barriers getting lower because of increased availability of fundamental research | |||
• Drug Approval regulations getting stricter | |||
• Insecurity regarding the development of legal frameworks | |||
• Price Pressure due to exploding healthcare cost | |||
==Paradigms:== | |||
• Investors look elsewhere | |||
==Experts:== | |||
See our Research regarding Growth and Development issues | |||
==Timing:== | |||
==Web Resources:== | |||
See our Research regarding Growth and Development issues | |||
Revision as of 12:52, 2 December 2005
Description:
Over the last years, the growth rate of biotech industry has by far outperformed the one of the classical pharma industry. This has not had a positive impact on the profitability of biotech as such – profitability of most classical pharma majors is still higher than the one of most biotech companies – but it has shown in the development of stock prices. Biotechnology stocks have outperformed the ones of classical pharma majors thanks to the hope for future profits.
Enablers:
• Hope for good profit margins
• Hope for huge ROE
• Potential for spectacular breakthroughs in Research.
Inhibitors:
• Increase (instead of decrease) of R&D cost in biotechnology • Decrease in R&D costs for classical crugs • Entry barriers getting lower because of increased availability of fundamental research • Drug Approval regulations getting stricter • Insecurity regarding the development of legal frameworks • Price Pressure due to exploding healthcare cost
Paradigms:
• Investors look elsewhere
Experts:
See our Research regarding Growth and Development issues
Timing:
Web Resources:
See our Research regarding Growth and Development issues