Despite continued turbulence globally,
preliminary data reveal that the Swiss biotech and medtech sectors are
continuing to demonstrate their resilience this year.
The medtech sector has already
seen an increase of CHF 50 million in funding, while biotech investment run
rates are ahead of 2022. There is continuing startup activity in both areas,
helped by the close collaboration between corporates, startups and investors,
and access to experts with many years of top management experience. All of this
is recognized by the country again heading the Global Innovation Index. The
figures are remarkable given that that the population of Switzerland is only
8.8 million people – just over a fourthieth of the size of the US.
Medtech
Thanks to the CHF 134 million
financing of Distalmotion, and large financing rounds closed by Xeltis, EbaMed,
Nanoflex Robotics, Nagi Bioscience and Zurimed Technologies, Switzerland will
see a new record in invested capital in the medtech sector this year. Although
fewer deals have been completed than in 2022, the amount invested in Q1-Q3 2023
has already exceeded that in the whole of 2022.
Biotech Startups
In 2022, CHF 408 million was
invested in Swiss biotech startups. In Q1-Q3 2023, the figure was CHF 331
million, which represents a higher run rate. With CHF 103 million,
Noema Pharma has raised the most
money so far in 2023. The startup has in-licensed drug candidates from Roche.
The Wyss Zurich ETH Zurich Accelerator has also been particularly active having
already funded 25 companies from its initial endowment of CHF 120 million.
Prime examples are Nanoflex Robotics which is developing an endovascular navigation
system, allowing wires and catheters to be steered through vasculature using
electromagnetic fields and Hylomorph, a clinical-stage medical device company
developing innovative materials, which was able to close a financing round this
year. Other companies which were selected include Cutiss, MYNERVA, and OxyPrem.
Exits
The technological strength of
Swiss biotechs in drug development is reflected by the numerous sales of
startups to established companies in Europe and the US. The acquisition of
VectivBio stands out - the company, which was listed on Nasdaq, was acquired in
May by Ironwood Pharma for $1 billion.
Startups that are active in
diagnostics or in laboratory automation have also seen successful exits. The
outstanding transaction in this area was the acquisition of a majority
shareholding in ETH protemoics spinoff Biognosys by the Bruker Corporation.
Biognosys will retain its existing team and expand into the US.
Stefan Kyora, CEO of Startupticker, a longterm
expert observer of the Swiss medtech and life sciences sector, comments:
"We are witnessing good progress in both the Biotech and Medtech sectors.
While Biotech investments remained stable through the end of Q3 startup
activity is high and a significant funding round led by Distalmotion has
propelled Medtech investments to reach an all-time high in terms of invested
capital for this year.”
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