Switzerland shows sustained growth of biotech sector

02 May 2022

Switzerland shows sustained growth of biotech sector

In 2021, the Swiss biotech industry once again attracted record-breaking investments. At CHF 3.33bn, they reached the second highest value ever in the second year of the pandemic. This is according to the Swiss Biotech Report, which was presented by EY at the Swiss Biotech Day in Basel.

Expenditures for research and development increased to CHF2.56bn. Two companies contributed to effective SARS-CoV-2-specific therapeutics (Humabs BioMed/Vir Biotechnology and Molecular Partners/Novartis). However, the majority of research expenditures were for indications not related to pandemics, such as immuno-oncology, neurology, or treatments that modulate the human microbiome or cell-based regeneration. Investors also supported data-driven business models to enable the development of digital therapeutics or a more personalized medicine. The successful IPO of SOPHiA Genetics and the recent MDR certification for the Floodlight Application for multiple sclerosis patients from Roche are successful examples of such data-driven approaches.

«Last year, we expressed some caution that the COVID pandemic might take its toll and that the Swiss inclination not to intervene in the free market, and to avoid providing direct government support for venture-based startups and small/mid-sized R&D companies, could backfire and weaken the innovative power of Switzerland, said Michael Altorfer, CEO of the SBA. "However, record levels of financing in 2020 and 2021 suggest that not only Swiss, but global biotech investors continue to recognize the attractiveness of investment opportunities on offer."

Overall, the Swiss biotech sector generated revenues of CHF6.7bn, compared to CHF4.9bn in 2020. Growth was mainly driven by an increase in product sales, favorable one-time events from collaboration and licensing deals, as well as a general positive advancement of the product pipeline.