|read in the press release, total venture capital invested this past quarter experienced a decline in both dollars and deals from the second quarter and the industry as a whole is poised to end 2012 at lower levels than 2011.
Of particular concern is an ongoing decline in investment in the biotechnology and medical device sectors. When comparing total dollars invested and deals completed for the first nine months of 2012, there has been a 19 percent drop in dollars and a 12 percent drop in total deals from the same time period in 2011. However, even greater concern is the startlingly low number of first time fundings in both biotech and medical device companies. At just 32 new companies funded this quarter, we are on track to have the lowest level of first time fundings in biotechnology and medical device companies since 1995. The fact that first time investments in life sciences companies aren't being made raises even greater concern for the future of the medical innovation pipeline.
That is why NVCA and MedIC continue to advocate for policies that will help drive down the time and cost of drug and medical device development which will provide greater certainty and encourage more first time investments once again. Most of these newly funded companies fall into the early stages where they are taking on the challenge to develop new treatments and cures that solve the unmet needs of patients.
It is critical that the FDA implements, as fully and quickly as possible, the FDA Safety and Innovation Act signed into law in July so that entrepreneurs can have more certainty around their approval pathways and medical innovation can be brought to market more effectively.
However, we all need to come together as stakeholders in preserving America's leadership in medical innovation and work to turn this crisis around for the betterment of patients and economic growth. There remains a tremendous amount of promise within the life sciences sector with more discoveries being made in critical therapeutic areas than ever before. We are optimistic that improvements can be made, but we all must be vigilant in making certain we are committed to ensuring that medical innovation is a priority.
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