The number of biopharma deals with nonprofit or government entities has dwindled in recent months, while industry grants are climbing. Combined, however, a total of 936 bio/nonprofit deals and grants worth $11.17 billion is down by 37% in comparison with last year’s $17.8 billion and by 58.7% in comparison with 2020’s $27 billion. The volume also is down significantly by 16.8% from 2021 and by 33.4% from 2020.
While biopharma grants and company deals with nonprofits and government entities have dropped below each of the last two years, the volume of activity for non-pandemic-related efforts has remained steady. A total of 837 biopharma-nonprofit deals and grants combined so far this year are worth $10.8 billion, which is down by 21.6% over last year’s $13.7 billion and by 15.6% over 2021’s 992 volume. Also down are the deals and grants focused on the COVID-19 pandemic.
As the COVID-19 pandemic continues to wind down, the value of biopharma company deals with nonprofit and government entities, as well as grants, are down nearly 64%. Through mid-May 2022, BioWorld has tracked 309 bio/nonprofit deals worth $1.12 billion, and a total of 129 grants valued at $505.85 million.
The number of biopharma deals with nonprofits or government entities has dropped over last year, partly due to fewer COVID-19-related alliances, but the activity in 2022 is still strong in comparison to pre-pandemic years.
Similar to 2020, the COVID-19 pandemic has dominated both biopharma deals with nonprofit entities and grants in 2021. Combined, pandemic deals and grants account for 87% of the total value, but only 22% of the volume, for the year. Through the week of Christmas, BioWorld has recorded 388 grants for the industry, valued at $2.94 billion, and 845 bio/nonprofit deals worth $21.44 billion. Of those, 82 grants worth $1.4 billion and 194 deals worth $19.8 billion involved therapeutic and vaccine development or supply agreements for COVID-19.
On target with last year, a total of 87% of funds recorded in 2021 through biopharma collaborations with nonprofit entities by the end of October are focused on COVID-19 pandemic efforts. The pandemic accounts for 54% of the money collected through grants, which is still a sturdy amount but down from 76% in 2020.
Biopharma company deals with nonprofit entities, as well as grants, are not keeping the same pace as last year, but the proportion of money flowing into COVID-19 efforts continues to account for the majority of those recorded overall.
Although more than a third of U.S. citizens are fully vaccinated from COVID-19 and society moves closer to normalcy in many parts of the world, the SARS-CoV-2 virus continues to dramatically impact biopharma dealmaking with nonprofit entities, as well as grant awards.
Busting a logjam of inadequate data sharing methods and communications between pharmas and health authorities around the world is the impetus behind the creation of nonprofit Accumulus Synergy Inc., whose common, cloud-based platform is designed to make the regulatory process easier for everyone involved. The coalition’s initial membership is a Who’s Who of big pharma: Amgen Inc., Astellas Pharma Inc., Bristol Myers Squibb Co., Glaxosmithkline plc, the Janssen Pharmaceutical Cos. of Johnson & Johnson, Eli Lilly and Co., Pfizer Inc., Roche Holding AG, Sanofi SA and Takeda Pharmaceutical Co. Ltd.
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.