Lack of capital blocks the development of biotechnology. Investors are waiting for success and lower risk

Biotechnological companies are the greatest obstacle to their development, and currently there is a risk aversion in investors – representatives of the capital market and the stock exchange at the conference “Capital Na Zdrowie 2025” informed. They indicated that in order for the bull market to return, biotechnology companies need great successes, but the sentiment on the market should improve.

“Problems of listed and non -fellow companies result from the problem with financing. (…) Polish biotechnology has started with a long delay compared to Western Europe or the US. It is hard to make up for a few years, where the market is amused, and the largest players are located in the US. The more that there is no spectacular success of success (biotechnology – some medicine or commercialization introduced to the market, “said Łukasz Kosiarski, Ipopema at the conference.

“Biotechnology companies, in addition to having a good scientific base and ideas, I have to think more American – that is, how to sell it, how to commercialize the product and at what stage. In addition, they should have contact with potential customers, know what customers expect” – he added.

He pointed out that this is currently changing slightly – there are more commercialization processes, the companies say that they are conducting talks on this subject.

“The market is cyclical – there is either a retreat or a recurrence – we are now somewhere in between. The decrease in interest rates is slow, but there is a sentiment to the market,” said Łukasz Kosiarski.

“At the moment, the industry is in the digestion phase of decisions taken before the administration of President Trump. These decisions have increased risk aversion – overseas we have a deterioration in the biotechnology industry, this sentiment is very weak. American biotechs release employees (…). This situation has an impact on Polish biotechnological companies. In Poland, we also have optimization and cutting of costs. Is it a hole? – said Krzysztof Radojewski, Noble Securities at the conference.

He pointed out that risk aversion means that start-ups are not financing, while projects that generate cash and have growth prospects for them, they can find investors' interest.

“To make Biotechnologiczne companies return to success, they need to show that the money invested in them is effective. (…) The industry is constantly developing, we have a lot of advanced clinical trials, the companies have the largest number of data in history, and yet we have the smallest evaluation for years. So it may be the fault of the market,” said Krzysztof Radojewski.

“Biotechnological companies are currently the largest blocker in their development. Effective therapies are still lacking, and Polish science has people, scientists who are capable and have potential to create them – but they do not have financing,” said Marek Skibiński, Angel Investor at the conference.

He pointed out that regarding the risk of investments in biotechnology companies, often in the case of companies dealing with new technologies these risks occur from the regulation side.

“The greatest risk is often on the side of the regulator – technologies are ahead of regulations. From an investor's point of view, you have to take this into account,” said Marek Skibiński.

“We must understand what challenges a team faces the task of launching a new medicine. In the case of some drugs, the study will last a long time – then you have to reckon with the fact that the company will need hundreds of millions of zlotys to the second phase,” said Łukasz Zybaczyński, president of the board of Bioresearch Pharma.

In his opinion, the companies in the pre-phase and phase should be supported by institutions and grants.

“No investor will invest in the presentation that the company will present to him – you must first go through these first steps,” he said.

Izabela Mikołajczyk, director of the Primary Stock Exchange market department indicated that the stock exchange should be one of the key platforms for raising capital by innovative companies, including biotechnology companies.

“These are industries that are at the stage of development before revenues, EBITDA or Cashflow – so investments in such entities are subject to greater risk, but they give a chance for a greater rate of return,” she said.

“We have companies on the Warsaw Stock Exchange, which obtained capital through IPO, and then through secondary offers (…). The capital market gives companies the possibility to increase capital through subsequent funding rounds, and the companies on the Polish court regularly use it” – she added.

She indicated that the limited number of institutional investors is a big problem at NewConnect.

“I think that we will not be able to build a suitable volume on the very database of retail investors, which will be conducive to the development of innovative companies. We want institutional investors to appear,” said Izabela Mikołajczyk.

“The second issue is liquidity – we want to improve it even by expanding the analytical support program to companies listed on nc. We want to involve institutional investors, including funds, to invest in nc. We are in the process of talks,” she added. (PAP Biznes)

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