This article discusses the challenges and opportunities for the biotechnology industry in 2022. These include skills shortage, M&A, and regulatory hurdles. One emerging trend is the pandemic COVID-19, which is expected to fuel the industry’s expansion. However, the biotech industry in 2022 remains highly uncertain. Several other factors could also affect the industry, including the ongoing COVID-19 pandemic.
A recent report by PwC found that the biotechnology industry could pull off $350 billion to $400 billion in M&A in 2022. While the firm anticipates five to 15 billion-dollar biotech takeovers, it also expects to see opportunities for $100 billion megadeals and $50 billion large buyouts. Last December, analysts at RBC Capital Markets said they saw a rebound in the M&A market coming. While large companies still face looming patent cliffs, a resurgence in biotech deals is likely.
The omicron virus variant is one example of how uncertainty could cloud the biopharma M&A process in 2022. The new coronavirus variant was discovered in early 2018, disrupting a J.P. Morgan healthcare conference. While disruptions could delay dealmaking, the RBC team noted that lessons learned from “pandemic-proof” due to diligence efforts might finally come to fruition in 2022.
One major trend to watch is the trend toward partnership. Alliances allow both sides to demonstrate value early and gain access to key patients. The bigger biopharma can also familiarize themselves with newer technologies and take on scientific risks. On the other hand, smaller companies gain insights into the operations of larger partners. All of these factors could lead to the growth of M&A in the biotechnology industry in 2022.
The FDA recently held up a phase 3 trial for uniQure’s etranacogene dezaparvovec, gene therapy for a rare neurodegenerative disorder. The FDA also recently announced that it would scrutinize biopharma deals. This could mean that biotech mergers will take longer than they would like. In the meantime, there are many opportunities to acquire companies that have a competitive advantage and strong pipelines.
A recent acquisition highlights the growth in biotechnology. Takeda has exercised its option to acquire publicly traded medical device maker Adaptate Biotherapeutics for $1.9 billion. The combined company will be developing antibodies to modulate a patient’s own cytotoxic gamma delta T cells. Through the acquisition, Takeda will gain a comprehensive pipeline and a patient-direct model.
The biotech industry faces many regulatory challenges in the next decade, but one area that will remain a top priority is airborne pathogen detection. Molecular recognition technology is close to real-time detection of airborne viruses, and this could lead to significant health and economic benefits. As a result, the biotech industry will continue to seek ways to improve its supply chain, including digital supply chains. In addition, the growing field of personalized medicine will continue to put pressure on supply chains.
The long-term outlook for the biotech industry is murky. Long-term EPS growth expectations are at their lowest level in years. However, regulatory uncertainty, and rising costs of developing new COVID vaccines, may increase margin pressure for biotechs. Additionally, franchises are maturing, while new entrants could discount novel product launches. Meanwhile, continued penetration of legacy blockbuster biosimilars may encourage M&A sentiment.
Despite these challenges, investors are increasingly viewing the biotech sector as an undervalued sector. A number of reasons are driving this, including the looming patent expirations and depressed smid-cap valuations. Meanwhile, a post-pandemic world could spur more biotech M&A activity. These factors may also increase biotech investment and IPOs. However, there’s no need to panic. Regulatory uncertainty will not deter investors from the sector, but it will make it more difficult for companies to access capital.
The healthcare sector continues to face challenges with the storage of electronic records. The introduction of sensor integration and the Internet of Things will enable researchers to access unprecedented amounts of data. This will allow the biotech industry to use patient information in a new way. Genetech has already started a clinical trial with the Apple Watch. The biometric data of the wristwatch will be matched with genetic tests, allowing researchers to better understand the genes involved in cardiovascular disease.
A growing area of research involves understanding how the immune system works. The disease can spread without a proper understanding of how the body works, leading to epidemics. Immunotherapy research will play an increasingly important role in this area, as well as research on the function of immune cells. Many companies are making significant progress in addressing these challenges in an increasingly global marketplace. If more research continues to focus on understanding the immune system, it could lead to the development of new, more effective vaccines.
According to Dr. David G. Argent, a biotechnology industry expert, the biotechnology industry will experience a skills shortage by 2022 because the biotechnology industry will continue to innovate, generate new products, and create more applications. Unfortunately, no one knows how biotechnology companies will create many new jobs, so predicting the shortage is difficult. However, many biotech companies are already partnering with health tech teams and universities to train their employees.
A lack of highly skilled workers is biotech companies’ most immediate issue. The pace of R&D and commercialization has created stark realities. The biotech industry will face a skills shortage unless it improves processes and provides mechanisms to reskill existing talent. This is the obvious bottleneck, but retraining the existing workforce is a daunting challenge. This article will examine the most important solutions for the biotechnology industry.
While there are many solutions for the skills shortage, the first step is to improve educational institutions’ training programs. While many online courses are available, traditional classroom-based biotechnology programs don’t always prepare students for the real world. This is a serious problem. Unfortunately, not all universities offer the right biotech training. Some colleges, such as New York Tech, don’t offer biotechnology-related programs. However, there are few biotechnology programs available in the U.S.
Biotech companies need skilled people with different skills. Some of these positions require hands-on lab work and are specialized in specific areas. Other positions need more technical knowledge, such as chemical engineering or bioprocessing. A background in cellular biology or aseptic technique work will help you gain job opportunities in these areas. In addition, understanding regulatory policies and regulations are essential for industry-guiding careers. Likewise, tailoring your education to the needs of the biotech company will reflect well on your resume.
Another solution to the problem of the skills shortage in biotechnology is to increase the pool of talent. However, this is easier said than done, as many top biotech talents are already working for another company. Additionally, hiring remote employees can change the biotech culture. Deep Genomics, for example, has the main act in Toronto and recently opened an office in Boston. Although the biotech industry is booming, it is experiencing attrition and is facing a skills shortage.
COVID-19 pandemic fuels biotech market expansion
The COVID-19 pandemic will spur biotech market growth in 2022. The pandemic has disrupted biotechnology but will bounce back stronger than ever. Its global focus will spur a host of biotechnology companies to develop innovative drugs and diagnostics to combat the disease. Some key players in the biotech industry include Allergan, Inc., Amgen, Celgene Corporation, Genmab A/S, Gilead Sciences Inc., Johnson & Johnson, Pfizer, Regeneron Pharmaceuticals Inc., and Regeneron Pharmaceuticals Inc.
The global response to the COVID-19 virus has affected industrial activities worldwide. Biotechnology has played an important role in the development of a vaccine to combat the disease. Biotech firms are investing a considerable amount in the development of vaccines, which will lead to increased demand for vaccines in the years to come. In addition, biotech firms are focusing their efforts on finding molecules that activate the immune system to fight the disease.
As the COVID-19 pandemic continues, research and development will focus on emerging diseases. While biotech products and services are highly useful in treating common and rare illnesses, it is also used in organic food production. The future growth of biotechnology in Asia-Pacific is highly dependent on its innovation. It is expected to be driven by favorable government policies, epidemiological factors, and increased collaboration between companies.
Despite the negative effects of the pandemic, the impact of the COVID-19 outbreak is positive. The pandemic identified key inefficiencies in the biotechnology industry that can be addressed and improved upon and will enable the biotech industry to compete more effectively in producing new drugs and vaccines and repurposing existing ones for new indications. As a result, the COVID-19 pandemic will continue to fuel biotech market growth for several years to come.