Swiss biotech sidesteps Covid with record investment
Swiss biotechnology companies invested a record CHF2.6 billion ($2.7 billion) into research last year despite most concentrating their efforts away from the coronavirus pandemic.
Research was instead focused on areas such as immuno-oncology, neurology and emerging areas such as cell-based therapies, according to the annual Swiss Biotech Report from consultancy group EY Switzerland.
The industry achieved sales of CHF6.7 billion in 2021, up from CHF4.9 billion the year before. But the global pandemic had a surprisingly detrimental effect on the health of the Swiss biotech industry.
Funding fell away slightly to CHF3.3 billion as investors concentrated on fighting the Covid-19 pandemic. “As a result, some companies have not received the financing they may need to survive,” said Frederik Schmachtenberg, life sciences expert at EY Switzerland, on Tuesday.
Some three to five percent of small biotech companies fell into severe financial difficulties or had to shut down, said Michael Altorfer, CEO of the Swiss Biotech Association, on Tuesday.
“Over the past year, I’ve been far more concerned about the potential financial problems of individual companies,” he said.
But the report authors hope that funding will return to other research areas as the global pandemic looks to be coming under control this year.
Switzerland has some 323 biotech companies, employing around 17,855 people, which is a 9.5% increase in employees from 2020.
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