BDO Biotech Brief | Summer 2021

Revenue, R&D and Biotech’s Future

In recent years, R&D spending has outpaced revenue in the biotech sector. However, BDO’s analysis of the NASDAQ Biotech Index (NBI) shows that trend is starting to reverse for medium and large companies. Check out our report to see what’s driving this shifting trend—and what it means for the future of biotech.

BDO Biotech Briefing Summer 2021 Tablet


  R&D is Slowing Down
From 2019 to 2020, average R&D spend increased by 16%, which is lower than the 20% increase we saw from 2018 to 2019. Will this slowdown continue or will we see R&D rebound in 2021?
  A Possible M&A Resurgence
Biotechs took on a lot more debt in 2020—overall, biotechs issued 185% more debt in 2020 than 2019. More cash on hand could enable more M&A transactions in 2021. However, increased FTC scrutiny on transactions could dampen M&A interest.
  The Decreasing Debt-To-Equity Ratio
The debt-to-equity ratio decreased in 2020, despite debt proceeds surpassing equity proceeds. This is likely due to the biotech stock market and IPO boom we saw in 2020.