BIOCITECH: Over 20% increase in revenue for the residents in 2014

04-May-2015 - France

Biocitech announced the 2014 results achieved by its residents. Biocitech residents submitted encouraging results for 2014, with growth in many areas. The overall revenue for the complex’s residents grew by 21%, from €51.3 million ($55.5 million) in 2013 to €62 million ($67 million) in 2014. Some companies, such as Actolis, Adebiotech, Metabolium, Pharma Biot’Expert and PrimaDiag, saw revenue boosts ranging from 50% to nearly 300%. Other residents maintained a steady level of revenue and made large investments in research and development

The revenue boost for Biocitech residents is largely due to a 12% increase in external clients, with the number of client contracts increasing by 80%. Other figures, such as staff numbers, preclinical and clinical studies, the number of contracts signed and the number of partnerships between residents and foreign companies, have remained stable. These results stem from both the efforts of the residents and the quality of the Biocitech ecosystem. Biocitech provides a nurturing environment where companies can grow with support from a network of external partners. This network includes the CCI (Chamber of Commerce and Industry), AP-HP (The Paris network of teaching hospitals) and competitive clusters such as Medicen Paris Region, Cap Digital and Systematic.

Biocitech residents are optimistic in their forecasts for 2015, with the majority having a positive view on both the past year and the year ahead. This positive attitude reflects the improving economic situation and morale of French entrepreneurs. Other promising signs for the residents include developing prospects, the diversification of activities and partnerships formed with foreign companies.

Despite the promising outlook, financing of the residents’ activities remains demanding. In 2014 many residents had to rely on subsidies and grants that did not meet their financial needs. Most companies do not have sufficient funds of their own, making it difficult for them to obtain subsidies. The overwhelming majority rely on R&D tax credits (CIR for Crédit Impot Recherche) to finance activities. However some residents did manage to raise significant funds; Pherecydes Pharma raised €1.9 million ($2 million) in order to continue its development plan, while PrimaDiag successfully raised €212,000 ($229,000) through crowdfunding. Many other residents are considering turning to this as a means of alternative funding in 2015.

“We are very satisfied with the positive growth experienced by many residents in the Biocitech complex,” said Jean-François Boussard, CEO of Biocitech. “The increased revenue of our residents and the arrival of seven new residents in 2014 show that we are making the right strategic choices. We redesigned Biocitech to create a city complex that is open to biotechnology and healthcare companies from inception to business maturity. On January 31, 2014 we celebrated our ten-year anniversary. Over the past decade we have supported many innovative startups that continue to grow thanks to the benefits offered by the city complex. Our residents are at the very heart of innovative sectors, experiencing growth and looking to the future. We will continue to support their efforts in 2015.”

https://www.bionity.com/en/news/152675/biocitech-over-20-increase-in-revenue-for-the-residents-in-2014.html