Biotechs Bank for Survival

Image: Anne MacNamara Like prudent squirrels bracing for a harsh winter, biotech managers are scrambling to conserve money in an effort to keep their companies alive during the current financing downturn. Biotechs have not gone under in droves, despite the funding turn back. Most have survived using strategies such as licensing and partnership deals, innovative financing, and simple cost cutting, including layoffs. "We haven't seen the kind of consolidation you would expect. It is a little sur

| 4 min read

Register for free to listen to this article
Listen with Speechify
0:00
4:00
Share

Like prudent squirrels bracing for a harsh winter, biotech managers are scrambling to conserve money in an effort to keep their companies alive during the current financing downturn. Biotechs have not gone under in droves, despite the funding turn back. Most have survived using strategies such as licensing and partnership deals, innovative financing, and simple cost cutting, including layoffs. "We haven't seen the kind of consolidation you would expect. It is a little surprising," says Jill Kiersky an analyst who follows biotech at Morningstar in Chicago.

One key to the industry's resilience is that many companies were awash in capital before the funding drought began. Based largely on enthusiasm for genomics, 72 biotech companies went public from December 1999 to the first quarter of 2001 and raised $6.8 billion (US) in financing, according to Recombinant Capital, a Sanfransico biotech consulting firm.

But 20% of the members of the class of ...

Interested in reading more?

Become a Member of

The Scientist Logo
Receive full access to digital editions of The Scientist, as well as TS Digest, feature stories, more than 35 years of archives, and much more!
Already a member? Login Here

Meet the Author

  • Susan Warner

    This person does not yet have a bio.

Published In

Share
3D illustration of a gold lipid nanoparticle with pink nucleic acid inside of it. Purple and teal spikes stick out from the lipid bilayer representing polyethylene glycol.
February 2025, Issue 1

A Nanoparticle Delivery System for Gene Therapy

A reimagined lipid vehicle for nucleic acids could overcome the limitations of current vectors.

View this Issue
Considerations for Cell-Based Assays in Immuno-Oncology Research

Considerations for Cell-Based Assays in Immuno-Oncology Research

Lonza
An illustration of animal and tree silhouettes.

From Water Bears to Grizzly Bears: Unusual Animal Models

Taconic Biosciences
Sex Differences in Neurological Research

Sex Differences in Neurological Research

bit.bio logo
New Frontiers in Vaccine Development

New Frontiers in Vaccine Development

Sino

Products

Tecan Logo

Tecan introduces Veya: bringing digital, scalable automation to labs worldwide

Explore a Concise Guide to Optimizing Viral Transduction

A Visual Guide to Lentiviral Gene Delivery

Takara Bio
Inventia Life Science

Inventia Life Science Launches RASTRUM™ Allegro to Revolutionize High-Throughput 3D Cell Culture for Drug Discovery and Disease Research

An illustration of differently shaped viruses.

Detecting Novel Viruses Using a Comprehensive Enrichment Panel

Twist Bio