Title: Estimation of capital requirements for the therapeutics sub-segment of the Canadian biotechnology industry

Authors: Michel Y. Bergeron, Lawrence Kryzanowski, Paul Beaulieu, Sofiene Zorgati

Addresses: UQAM, P.O. Box 8888, Station Centre-ville, Montreal (PQ), H3C 3P8, Canada. Concordia University, 1455, boul. de Maisonneuve W., Montreal (PQ), H3G 1M8, Canada. UQAM, P.O. Box 8888, Station Centre-ville, Montreal (PQ), H3C 3P8, Canada. UQAM, P.O. Box 8888, Station Centre-ville, Montreal (PQ), H3C 3P8, Canada

Abstract: In this paper, we estimate the capital requirements for the Canadian therapeutics sub-segment of the biotechnology industry using static and dynamic analyses. We estimate the total capital required to develop the current aggregate portfolio of a sample and the population of companies in the therapeutics sub-segment for various growth scenarios in the number of new products entering the aggregate portfolio of products. The findings of this study indicate a large increase in capital requirements, particularly over the next ten years. Although our results potentially can be refined with more precise information, they clearly show the importance of adequate planning on the part of both users and providers of capital if the capital appetite of this sub-segment of the biotechnology industry is to be adequately satisfied in the foreseeable future.

Keywords: biotechnology; capital requirements; product development financing.

DOI: 10.1504/IJBT.2001.000171

International Journal of Biotechnology, 2001 Vol.3 No.3/4, pp.362-373

Published online: 13 Jul 2003 *

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