Boosts in R&D spending drive biotech innovation

Fueled by a desire for innovation and new medical breakthroughs, the biotech industry continues to enjoy substantial growth due to increased investment in research and development (R&D), according to the sixth annual study from BDO USA, LLP, a US professional services firm.

The 2017 BDO Biotech Briefing, which examines the most recent 10-K SEC filings of publicly traded companies included in the  Nasdaq Biotechnology Index found that average R&D spending across all mid-market biotech companies increased about 18% from 2015 to 2016, from an average of $65.9 million to an average of $80.6 million. (Full study here)

The uptick in R&D spending is one factor that can explain the recent surge of innovation across all areas of the biotech industry, including significant advances in biological sciences and pharmaceuticals, and the expansion of more effective drugs and curative and preventive treatments aimed at enhancing the quality of human life. In particular, a rising incidence of chronic illnesses due to an increasingly aging population continues to drive more advancements in drug products targeted at oncology and gene therapy to prevent and treat chronic illnesses.