Private Equity
Andrea Alms Video: Money In Motion 87 - Biotechnology Market - Part 2
December 2023 - Private Equity
Transcript: Hello, my name is Andrea Alms. I'm technology investor and financial manager and this is your money in motion. Looking back ten years, the S&P biotechnology stock have been on a volatile and uncertain years on a hot streak. But in the last three years, the negative returns. What's going on? We first check out the market size and growth averaging the averages. The market is 415.3 billion, growing at 14.5%. Why is the pie growing and return shrinking based on product types? Largest revenue share is software and services, according to reports and data by region, North America, Europe, APAC, Software and services commands the largest revenue share, followed by reagents and instruments. Over the past 30 years, the number of publicly listed companies on the U.S. Exchange as have fallen. In the 1990s, there were more than 8000 companies listed in the U.S.. By 2020, there were less than 4000, and by the first half of 2021, there were 4155 listed companies, which is still low by historical standards, according to Dealogic. Reuters, March 2023 North America M&A volume was a -43.6% from year on year change. Back to our original question Why is the pie growing yet? Returns are shrinking. Increase in software and services that is, machine learning and artificial intelligence. And more companies keeping private. Thank you. This is your money. Your money, in motion.