Venture financing for early-stage innovator drugs by biotech companies headquartered in Asia-Pacific (APAC) and the US increased from 2020 to 2021. However, the APAC biotech companies received three times less investments than their US counterparts between 2018 and 2022, reveals GlobalData, a leading data and analytics company.

According to GlobalData’s Pharma Intelligence Center Deals database, the US biotechs saw a 70% increase in early-stage innovator drug venture financing, reaching a total deal value of $24.4 billion in 2021. In comparison, APAC biotechs saw 78% growth, but only amounted to $9.4 billion. However, in 2022, both US and APAC biotechs reported a decrease in total deal value and volume.

Between 2018 and 2022, APAC biotech companies received $23 billion for early-stage innovator drugs, whereas their US counterparts received $72 billion.

Ophelia Chan, MSc, Business Fundamentals Analyst at GlobalData, comments: “The market saw a decline in investments in 2022 due to market volatility caused by factors such as inflation and geopolitical issues including the Russia-Ukraine war.”

Although APAC headquartered biotechs have historically focused on generics and manufacturing, there seems to be a gradual shift investing more in seed and early-stage financing towards innovative drug development.

Chan concludes: “Although the US continues to lead the biotech venture financing raised for innovator drugs, there is an increasing number of transactions between APAC startups and foreign pharmaceutical investors. In addition, the biotechs headquartered in APAC are making strides in innovative developments to secure funding. Despite market volatility affecting both regions, growing interest in APAC’S innovative technologies from Western pharmaceutical companies could provide future opportunities in this space.”

Also read: APAC deal activity down by 50.5% in Jan 2023