FIT Biotech’s market outlook

Pharmaceutical market

The pharmaceutical industry typically invests up to 2,6 billion euros to develop one new drug to the market. Pharmaceutical companies continuously scout for promising drug candidates that smaller companies develop and test in preclinical and early clinical studies. Development companies have ongoing contacts and negotiations with big pharmaceutical companies to execute long term collaboration and licensing agreements with optimal partners.

Increased use of drugs is positively impacted by growth and ageing of population, launch of new drugs and therapies on developed markets and improved access of drugs and therapies on developing markets.

The pharma market has recently evidenced a multitude of licensing agreements at early development stage between biotech companies developing gene based therapies and the so called “large pharma”. A high demand on a rapidly growing market has resulted in rapidly escalating values of the total licensing agreements. Advance payments can total hundreds of millions of dollars with running royalties exceeding ten percent of net sales. This licensing market is targeted by us.

Biological drugs

Drugs can be divided into biological and chemical drugs. Chemical drugs most often have small molecules and they are manufactured using chemical reactions. Examples include painkillers and drugs for cardiovascular diseases. Biological drugs, on the other hand, contain mainly large molecules and they are manufactured by biotechnological methods. Examples include various antidotes and vaccines. The majority of new drugs and drugs under development are biological. Biological drugs are generally expected to provide better targeted, more efficient and safer treatments than chemical drugs.