Cowen’s Solomon Sees Gains in Biotech, Helped by Easier Access to Cash

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NEW YORK (Reuters) – U.S. regulations enacted after the financial crisis helped biotechnology companies raise the funds they needed to fight COVID-19 and will pave the way for further growth in the sector next year, the chief executive officer of investment bank Cowen Inc. said.

Over the last 10 years, 415 biotechnology companies have listed their shares publicly, raising $200 billion through IPOs and follow-on fund raising, Cowen data show. Their continuing research allowed the companies to get 420 drugs approved during that time, the data show.

BioNtech, which listed its stock last year, and Moderna Therapeutics, which went public in 2018, have both asked U.S. and European regulators to approve their COVID-19 vaccines.

“Individuals and small businesses now have a smoother pathway to the capital markets thanks to more inclusionary rules and that has had a huge impact on many sectors but most prominently the biotech sector,” Jeffrey Solomon, Cowen’s CEO and chairman said at the Reuters Global Investment Outlook Summit. “Are we going to see more growth in the biotech sector next year? Yes.”