Growing exports and record investments: the Swiss biotech sector has once again gained in importance in 2020, as the new Swiss Biotech Report shows. The Corona crisis has further intensified the trend that has been going on for years.
The 2021 Swiss Biotech Report includes again impressive numbers showing the strengths and the economic importance of the sector. In 2020, the life sciences sector (pharmaceuticals, vitamins and diagnostics) achieved a record export value of CHF 99.09B. This subsector alone represented a 44% share of total Swiss exports in 2020, a strong expansion from its 17.4% share in 2000. The export value increased also from 2019 to 2020. This strong performance was in contrast to an overall 7.1% decline in Swiss exports due to the COVID-19 crisis.
Swiss biotechs raised a total of CHF 3.44B – their best year ever. CHF 2.7B were invested in public companies including ADC Therapeutics from Lausanne with a CHF 470M (IPO & follow on), CRISPR Therapeutics (CHF 940M), Idorsia (CHF 866M), Molecular Partners (CHF 80M), and Basilea (CHF 125M). ADCs IPO at Nasdaq was the second most successful IPO of a European biotech in 2020.
«2020 was clearly an exceptional year. Investor interest was demonstrated by record levels of financing and the creation of new biotech-specific investment funds such as Pureos Bioventures and Bernina Bioinvest», said Jürg Zürcher, Partner and Biotechnology Leader Germany, Switzerland, Austria, EY.
Large investments for young start-ups
The biggest portion of the private capital was raised by VectivBio Holding AG (CHF 135M), SOPHiA Genetics (CHF 100M), and the newly founded company Noema Pharma (CHF 54M). It is striking that even very young companies like Noema Pharma were able to attract very large amounts. Behind these investments are often experienced VCs who have had good experiences with large, early investments. In addition, the companies that succeed particularly quickly are often founded and supported by experienced experts. In addition, these teams often already posses valuable assets at the start.
Delays leave their mark
Despite record investments, the liquidity situation of private companies has deteriorated slightly compared to 2019. This is one of the few indications that the biotech industry has also been hit by the pandemic and that some planned revenues and investments have been delayed.
2020 was also a good year for biotech companies on the Swiss stock exchange. Compared to 2019, trading volumes rose sharply by 177% and the total free float market capitalization of all SIX-listed biotech companies was up 30% on 2020. The companies were able to raise about CHF 1 billion. The biggest share flowed to Idorsia followed by Molecular Partners.
In addition to the financial analysis, the 2021 report highlights Switzerland’s role in responding to the pandemic through basic research (e.g. cloning and 3D structure of the virus), vaccine manufacture and component supply (e.g. Lonza, Bachem, Janssen Cilag), diagnostics (e.g. Roche, Quotient, Ender, MosaiQ, Biolytix) and therapeutics (Humabs Biomed/Vir Biotechnologies, Molecular Partners/Novartis).
«While the pandemic highlighted the importance of the biotech and pharmaceutical sectors, a note of caution may be warranted as many companies suffered significant delays in their R&D pipeline. Nonetheless, we are confident that the sector will continue its impressive expansion», commented Michael Altorfer, CEO Swiss Biotech Association.
The Swiss Biotech Report 2021 can be downloaded from the website of Swiss Biotech.
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