Pharmaceuticals & biotechnology companies are tempting investment opportunities; who wouldn't want to back a company that can tap into the swelling demand for more and better drugs, particularly as antibiotics become outdated and populations age?
The recent flood of pharma & biotech IPOs indicates the industry still generates a fair amount of attention. However, the road from the lab to pharmacy shelves is fraught with regulatory hurdles, time-consuming trials and patent issues. Such hindrances make private equity investors wary, and the numbers imply investor caution; a cursory search of the PitchBook Platform uncovers a decline in capital invested even as deal count has risen in recent years, intimating that although the field is still attractive, firms are risking less money. But what isn't as risky is the support ecosystem surrounding the drug trial process, because no matter who wins or loses in the game of drug development, the process constantly requires a wide variety of service providers to assist in research, regulatory compliance and more.