The amount of money flowing into the biopharma industry via grants and collaborations with nonprofit and government entities is a 272% increase over last year, with efforts to fight the COVID-19 pandemic accounting for 84% of the total for 2020.
BioWorld has tracked 855 bio/nonprofit deals worth $14.66 billion and 630 grants awarded to the industry and valued at $12.72 billion for a combined total this year of 1,485 and $27.4 billion. Companies developing therapeutics and vaccines for the SARS-CoV-2 virus are the recipients of about $23 billion of those funds through 628 deals (42%).
To put the year in perspective, without COVID-19, the industry fell short of last year with only $4.34 billion recorded – a 41% decrease to the $7.36 billion in 2019. The number of non-COVID-19 deals in 2020, however, are only 4% down from last year – 857 vs. 891.
While only 12%, or 176, of the bio/nonprofit deals and grants involved the U.S. government and its agencies, those deals and grants accounted for 68% of the funds brought into the industry for a total of about $18.6 billion. Operation Warp Speed, an effort initiated earlier in 2020 through the U.S. Department of Health and Human Service’s Biomedical Advanced Research and Development Authority, is responsible for the largest portion provided.
A listing of biopharma deals with nonprofit and government entities, as well as grants awarded to the industry, are updated through the third week of December and can be found within BioWorld Snapshots.