Biotech companies to increase R&D spend but highlight complexity of clinical trials - ICON
January 08 2024 - 7:00AM
Business Wire
Survey points to importance of strategic
engagement with investors and effective asset development
strategies to optimise funding
ICON plc, (NASDAQ: ICLR) a world-leading healthcare intelligence
and clinical research organisation, today launched its “Optimising
biotech funding” whitepaper. This provides an overview of the
current state of play for biotech companies and the research and
development (R&D) strategies they can adopt to attract and best
utilise investment funding.
A recent survey of over 130 biotech executives, published by
ICON, shows that 60% of respondents expected to increase R&D
spending, whilst only 2% planned to reduce funding. While
respondents were confident in their outlook with regards to
investment milestones and product success, significantly, 32% of
respondents cited clinical trials as one of the biggest challenges
in bringing novel therapies to market. This finding suggests an
opportunity for biotechs to consider how they can work more
comprehensively with their clinical development partners.
Chris Smyth, President of ICON Biotech, commented: “Biotech
companies’ lean structural models mean they outsource a large
proportion of their clinical development and R&D activity.
Under financial constraints they often use ad-hoc outsourcing
contracts that can be costly and may not offer the continuity
needed. Building cohesive and strategic partnerships with large
pharma, CROs and investors can help in developing a more robust
strategy that better supports the potential success of
products.”
Securing funding is a perpetual priority for the biotech
industry. Half of respondents (48%) are using partnerships with
large pharmaceuticals as their current funding method, while a
third (32%) have gained investment from venture capital firms. With
15% of respondents noting the need for additional funds before they
can progress R&D plans, biotechs need to take a holistic
approach to attract investment. Understanding the various sources
of funding and their distinct areas of focus is important – from
venture capital and partnerships with large pharma, to other
sources such as government initiatives, accelerators and
incubators.
Survey responses also signalled the impact the funding
environment will likely have on operations. Almost half (47%) of
respondents said the rising cost of capital will have the greatest
influence on future operations, and 35% named cost management as
the most significant barrier to innovation. These findings
emphasise the importance of implementing strategies to best utilise
the funding biotechs have secured. These include best practices to
optimise trial designs and proactive and timely communication with
regulators to help plan development programs and improve endpoint
selection.
“Biotechs must walk a line between de-risking and validating
their assets to instil confidence in potential investors while
pursuing novel innovation to catch their interest. Ensuring there
are robust clinical development strategies in place underpins both
these goals. Support within the wider industry is available –
partnering with large pharma and CROs will help biotechs continue
to contribute to the innovative and scientific advancements of much
needed medicines,” commented Chris Smyth.
There is still significant capital available for biotechs. In
the whitepaper, “Optimising biotech funding”, ICON shares how
companies can best position themselves to secure funding, as well
as R&D strategies to maximise funding once it has been secured.
Areas covered include:
- Considerations for biotechnology companies as they pursue
funding from sources including venture capital firms and
partnerships with large pharmaceutical companies
- How companies can make more strategic outsourcing decisions,
participating in thoughtful collaborations to optimise their
programs
- Best practices to optimise trial designs, maintain development
timelines and build value into the program to maximise the impact
of funding
For further information please visit
www.ICONplc.com/biotech.
Ends
About the ICON Biotech Sector Survey
The survey, conducted on ICON’s behalf by Citeline in June 2023,
included 133 respondents, predominantly located in Europe and North
America from small pharmaceutical and biotech companies, mid-size
pharmaceutical and biotech companies, and large biotech or venture
capital organisations. The survey was designed to generate a more
detailed picture of how biotechs are coping with cash constraints,
the challenges encountered in the sector, and strategies to
navigate the evolving landscape.
About ICON plc
ICON plc is a world-leading healthcare intelligence and clinical
research organisation. From molecule to medicine, we advance
clinical research providing outsourced services to pharmaceutical,
biotechnology, medical device and government and public health
organisations. We develop new innovations, drive emerging therapies
forward and improve patient lives. With headquarters in Dublin,
Ireland, ICON employed approximately 41,160 employees in 106
locations in 53 countries as at September 30, 2023. For further
information about ICON, visit: www.iconplc.com.
ICON/ICLR-G
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Claire Quinn Corporate Communications, ICON +353 87 4066091
claire.quinn@iconplc.com
Weber Shandwick (PR adviser) Lisa Henry +44 7785 458203
lhenry@webershandwick.com
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