Despite the initial shock of the COVID-19 pandemic, 2020 was a standout year for biopharma. The top 600 biopharma companies added $487bn in market capitalisation, and smaller biotechs saw a record-breaking $12.8bn raised by IPO and $20bn invested by venture financers.
Fortunes in the medical device industry were more divided. Companies developing diagnostics and treatments benefitted from the continued focus on COVID-19, but other segments suffered from decreased demand — a trend that could continue in 2021.
- Novavax (2,702%) and Shin Poong (1,613%) saw the greatest market cap increases by percentage.
- AbbVie saw the largest increase in market cap by value, adding $58.2bn, followed by Eli Lilly ($35.3bn) and Moderna ($34.8bn).
- Biopharm M&A transactions totaled $130bn, with deals announced by Astrazeneca, Gilead and Bristol Myers Squibb compensating for a slow start.
- The FDA approved 57 novel medicines, a modest increase from 2019, with a total of $21.6 billion in fifth-year sales potential.
- The average size of medtech venture financing rounds reached a ten-year high at $37.4 million, a 50% increase from 2019.
- Medtech M&A continued to decline, with 111 transactions totaling $27.3 billion closed, the lowest value since 2013.