06/26/2009
Biotech consolidation: Is there light in the tunnel? (Mass High Tech)
The last 15 months has been witness to seismic changes and turmoil in the biotech industry. Cash is constrained, liquidity is nonexistent, venture investors are funding fewer companies.
Of the 350 public biotech companies, approximately 120 were trading with less than six months of cash on the books. Private biotech companies seeking access to the public markets for growth capital and liquidity for their venture capital investors, have seen market windows shuttered. Indeed, 22 biotechnology and medical device companies pulled their initial public offerings in 2008, and countless more likely chose to sit on the sidelines. A decade of healthy IPO exits was followed by a moribund market last year.
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