Kineticos recently released its Q1 2016 results of the Biopharma CEO Confidence Index, an indicator designed to measure C-suite sentiment and confidence in the biopharma industry's economy.
According to the company, data indicates CEO confidence has “leveled off after expressing some uncertainty in Q4 of last year.”
As Biopharma-Reporter previously reported, confidence among biopharma CEOs slipped in last year’s fourth quarter, due likely in part to the decline in capital markets.
The two largest risks among CEOs remained the same at access to capital (40%) and clinical results 30%). CEOs who were “very confident” in their ability to raise capital in the next 18 months rose from 39% in Q4 to 42% in Q1, and the view of the current deal landscape declined for a second straight quarter. However, confidence in delivering clinically differentiated assets remains high.
"This research highlights that CEOs are becoming more harmonized in their views on the market and related opportunities, suggesting greater overall stability and underlying confidence about the future direction of their business," said Steve Girling, President of Ipsos Healthcare.
Shailesh Maingi, CEO of Kineticos, told us that one of the biggest trends Kineticos is seeing is a shift in focus of Biopharma CEOs in the last three quarters.
“CEOs are less confident in the capital markets (both public and private) which is to be expected considering the recent biotech market upheaval,” he explained. “What's interesting is that biopharma CEOs have pivoted their focus back to their pipelines and execution.”
Maingi also explained that biopharma CEOs indicated they will not hire as many people going forward. “This is a clearly a cash conservation strategy,” he added. “Just as importantly, biopharma CEOs are telling us that they intend to increase outsourcing, again a logical outcome of conserving cash and not hiring people.”
According to the report, CEOs planning to commercialize with external partners vs. independently increased from 61% in Q4 to 70% in Q1.