"Life sciences companies faced challenges in 2011 from complex and rapidly changing capital markets, uncertainty with regulatory issues, and a reimbursement system that has grown increasingly hostile toward innovations," says Burrill. "Nevertheless, the on-going turmoil within the pharmaceutical industry, as well as the need to find ways to boost our agricultural productivity and develop new sources of renewable fuel and chemicals, is creating unparalleled opportunities for the biotech industry.
Burrill stresses that 2012 will be a “critical year” for the industry as companies seek access to capital to complete their scale up and demonstration facilities. “It's still early times for the sector, but revenues will grow and attract capital. In 2011, 7 bioindustrial companies raised $929 billion in initial public offerings, with three U.S. IPOs netting $500 million. Economic and political uncertainty will continue to impede access to capital but with a dozen U.S. companies in the IPO queue, expect to see at least half of them completed their initial offerings,” he explains.
Big oil, chemical, and consumer products companies will play an increasingly important role in the growth of the sector, says Burrill, with major oil companies stepping in to take equity stakes and help with project finance.
Besides industrial oil and chemical companies, we will see consumer product makers increase investment in the sector as they respond to pressures to shift their production to use more environmentally sustainable goods and processes.
Burrill & Company is a life sciences merchant bank focused exclusively on companies involved in biotechnology, pharmaceuticals, diagnostics, devices, human healthcare and related medical technologies, nutraceuticals and wellness, agricultural biotechnology, and industrial biotechnology (biomaterials/bioprocesses) with over $950 million under management. G. Steven Burrill founded Burrill & Company as a logical extension of his 40-year involvement in the growth and prosperity of the biotechnology industry.
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