The Biotech Industry Organization (BIO) this morning released a set of statistics that give a rather dire snapshot of the industry's health. Here are some of the highlights -- or, should I say, lowlights -- straight from their roundup:
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- 120 companies (30%) are now trading with less than 6 months of cash on hand. This represents a jump of 90% over the number of companies with less than 6 months cash on hand in 2007. (source: BIO) - 180 companies (45%) have less than 1 year of cash remaining. This represents a 65% jump vs. 2007. (source: BIO) - Only 10% of the 370 public US biotech companies have positive income [cash flow].(source: BIO) - By comparison with 2007, funds raised from initial public offerings in 2008 fell 97% and follow-on/secondary offerings [a second round of stock issuance after an IPO] fell 56%. Total capital raised by...

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