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2011 Number of Employees Financings Capital Raised by public companies Number of IPOs Capital raised by private companies Number of companies Public companies Private Companies Public and private companies Figure 0.1 47700 1,132 8 986 169 1847 2016 2012 % change 51,740 8% 2,133 3 920 165 1,799 1,964 Performance of European Biotech companies by size123 88% -63% -7% -2% -3% -3% 28% European sector size compared to global Biotech Industry 31% Europe sector size compared to US 52% 12% 27% 22% 52% 97% 90% With regards to drivers in Biotechnology as a whole we can see that it is the Small and Mid Cap124 companies that are outperforming not only the industry index, but also their larger counterparts. This is mainly due to the structure of the sector, where frontline research is done by the small and mid-cap companies. These companies are usually young and therefore grow faster once a product becomes financially viable. If and when the success of a product is consolidated, larger companies move in to acquire them. Given that the products and the larger companies are of a more mature nature, the risks are much lower, but so are the returns. Table 0.3 illustrates the concentration of Biotechnology companies in Europe with related revenue and R&D spending. Based on preliminary estimation regarding the activities of the Blue Biotechnology industry we are assuming that it is following similar trends to biotechnology in terms of the concentration of companies. Based on the entries of the stakeholder database the highest concentration of companies was identified in France, Germany, the UK and the Netherlands, as shown in Table 0.3. Table 0.3 Financial performance in 2012 of European Biotech companies by country125 Country Number of public companies UK 31 Revenue (EUR m) 4,048 123 Ernst & Young; Biotechnology Industry report 2013 125 Ernst & Young; Biotechnology Industry report 2013 Revenue growth (%) 10% Market Capitalisation 31.12.2012 (EUR m) 15,795 R&D spending (EUR m) 950 Net Income (EUR m) 422 124 Small- and mid-cap companies have low market capitalisation (value of stocks issued) and generally tend to raise between $250 million-$2billion capital, these values however vary depending on the country of operation 88 Study in support of Impact Assessment work on Blue Biotechnology

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