Biotech (2021)
Moving beyond make-or-break?
Last updated: 2 Sep 2021
Market 101
As the more adventurous younger sibling, biotech has long ventured where pharma would not: inventing medicine based on living organisms rather than chemical components. Biotech players promise more and more personalised, precise treatments and the kind of specialist knowledge coveted by incumbents. But the field can equally be a gamble of time and resources in the name of out-there research that might simply not pay off.
If biotech’s a risky bet, it’s one that investors are increasingly willing to embrace. The lightning quick adaptability of technology created by biotechs including BioNTech and Moderna during the pandemic gave us the clearest signal yet of the sector’s medical and economic value. Now, the hope is that this Covid momentum may change the industry wholesale, with less makeor-break and enough money sloshing around to ensure startups can dust themselves off and go again.
Early stage market map
Key facts
43%
Percentage of top 100 life sciences universities located in Europe1
€27.9bn
Market size of cell and gene therapies by 2026 (up from €1.1bn in 2020)2
0.5%
Projected growth in German GDP for 2021 attributed to BioNTech3
Trends to watch
1. Advances in cell and gene therapy
→ The treatment of serious diseases has long revolved around using medication to treat symptoms. By restoring the body’s own tissue, CGT instead seeks to potentially cure diseases themselves.
→ While CGT holds immense medical and economic potential, its personalised nature means the route to market differs fundamentally from conventional paths.
2. Towards personalised medicine
→ No disease is the same in any two individuals. A personalised approach tailors medicines to each patient’s unique genetic profile.
→ Personalised medicine relies both on advances in underlying tech such as CRISPR-Cas9 gene editing and insights about human genomics (and better patient stratification) more broadly.
3. Addressing blind spots
→ For all the innovation in biotech, there are also overlooked areas at odds with current business models and economic incentives.
→ For example, addressing infectious diseases will become increasingly critical, but doing so will likely depend on governments, rather than the private sector, stepping up funding.
Startups tracked by Sifted
Sifted take
There’s no doubt that biotech made in Europe is having a moment. But for the sector to reach its full potential, funneling more of the continent’s world-class research from university labs to startups has to be the priority.
Rising stars
Is developing a predictive model that uses molecular signatures to diagnose liver cancer. Cofounders Joana Cardoso Vaz and Jose Pereira-Leal both hold PhDs in biomedical sciences.
Round
Seed
Valuation
€5m
Date
2021
Size
€1m
Total funding
€7.4m
Drugs’ efficacy can be compromised because their active ingredients don’t always get to where they are most needed. Nanosyrinx addresses this by leveraging naturally occurring ‘nanosyringes’ to deliver drugs in a cell-specific, highly accurate manner. The technology is based on founder Joe Healey’s PhD research.
Round
Seed
Valuation
€37.5m
Date
2021
Size
€7.3m
Combines the strengths of antibodies and gene therapy to address CNS and somatic diseases. The company brings together an experienced leadership team with backgrounds in research, investment and operations in the biotech industry.
Round
Seed
Valuation
€155m
Date
2021
Size
€31m
Early stage startups to watch
24Genetics
Diagnostics and testing
Genetic testing
€1.3m
€1.1m
-
ABOLERIS PHARMA
Novel therapeutics
Antibodies and immunotherapies
€2.5m
€2.5m
-
Alia Therapeutics
Genetic Engineering
Gene editing
€3.4m
€2m
-
Anavo Therapeutics
Novel therapeutics
Protein and peptide therapies
€20m
€20m
-
Aptadel Therapeutics
Novel therapeutics
RNA therapies
€1.7m
€1.7m
-
Baseimmune
Novel therapeutics
Vaccine technology
€5m
€3.6m
-
Biomatter Design
Synthetic biology
Protein design
€500k
€500k
-
CiMaas
Novel therapeutics
Antibodies and immunotherapies
-
-
-
Cytoseek
Novel therapeutics
Cell therapies
€5.5m
€4m
-
Diafir
Diagnostics and testing
Spectroscopy
€800k
€800k
-
Ellogon.ai
Novel therapeutics
Antibodies and immunotherapies
€220k
€220k
-
Emergence Therapeutics
Novel therapeutics
Antibodies and immunotherapies
-
-
-
Evora Biosciences
Novel therapeutics
Cell therapies
€280k
€120k
-
Flomics Biotech
Molecular genetics,Diagnostics
Genome sequencing
€1.2m
€1m
€2.5m
Genomtec
Diagnostics and testing
Genetic diagnostics
€2.1m
-
-
Lykon
Diagnosis & detection
Genetic testing
€6.4m
€6.4m
-
Meletios Therapeutics
Novel therapeutics
Viral therapies
€3.8m
€3.8m
-
NanoSyrinx
Synthetic biology
Protein and peptide therapies
€7.4m
€7.3m
-
Ochre Bio
Drug development,rejuvenation
RNA therapies
€8.9m
€8.1m
-
Omniscope
Diagnostics and testing
Clinical testing
€2m
€1m
-
Ophiomics
Diagnostics and testing
Clinical testing
€4.8m
€1m
-
OxVax
Novel therapeutics
Antibodies and immunotherapies
-
-
-
Strike Pharma
Novel therapeutics
Antibodies and immunotherapies
€1.1m
€1.1m
-
Twelve Bio
Genetic Engineering
Gene editing
-
€440k
-
VectorY
Health
Viral therapies
€31m
€31m
-
Europe’s success stories
Who early stage startups are up against
(Pre-)Seed
Series A
Series B
Series C
Series D+
IPO/Exit
→ Market cap: €71bn (IPO’d 2019)
→ Has a pipeline of more than 20 candidates for treating cancer and infectious diseases
(Pre-)Seed
Series A
Series B
Series C
Series D+
IPO/Exit
→ Market cap: €8bn (IPO’d 2016)
→ Develops gene-based medicines based on its proprietary CRISPR-Cas9 gene editing platform
(Pre-)Seed
Series A
Series B
Series C
Series D+
IPO/Exit
→ Is developing a genetic sequencing technology capable of analysing a single molecule of DNA or RNA at a time
→ Also developed and commercialised a fast-acting diagnostic test for Covid-19 in 2020
Sources
Research reports
1 Innovation hotspots to drive the next act in Europe | May 2021 | BioEquity Europe
2 Cell and gene therapies: Pharma's next big wave | May 2021 | Roland Berger
News articles
3 BioNTech alone could lift German economy by 0.5% this year | August 2021 | Reuters
Biotech bubbles during the global recession | April 2021 | Nature
Biotech is riding a wave of growth in funding. What's next? | April 2021 | McKinsey
What does the next decade have in store for European biotech? | January 2021 | LabioTech
A look back at the past decade of European biotech | December 2020 | LabioTech
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