Sluggish economy hits biotech

Not one single venture-backed US company completed an linkurl:initial public offering;http://www.the-scientist.com/article/display/18293/ (IPO) in the second quarter of 2008, according to a linkurl:report;http://www.nvca.org/pdf/Q2_08_Exits_Release.pdf released yesterday (July 1) by the National Venture Capital Association, and the news means that small, privately-funded biotech companies may find it difficult to stay afloat in these uncertain economic times. "Companies will either disappear or

Bob Grant
Bob Grant

Bob Grant is Editor in Chief of The Scientist, where he started in 2007 as a Staff Writer.

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Jul 1, 2008
Not one single venture-backed US company completed an linkurl:initial public offering;http://www.the-scientist.com/article/display/18293/ (IPO) in the second quarter of 2008, according to a linkurl:report;http://www.nvca.org/pdf/Q2_08_Exits_Release.pdf released yesterday (July 1) by the National Venture Capital Association, and the news means that small, privately-funded biotech companies may find it difficult to stay afloat in these uncertain economic times. "Companies will either disappear or tread water for a little bit," said Peter Winter, editorial director at Burrill and Company, which linkurl:tracks;http://www.businesswire.com/portal/site/google/?ndmViewId=news_view&newsId=20080701005939&newsLang=en biotech industry trends. Approximately eight biotechs have filed for IPOs this year, with only one successfully going public, according to Winter. Last year, an estimated 35 biotech companies went public, raising a combined $5.5 billion in IPO financing, said John Craighead, director of investor relations and business development at the Biotechnology Industry Organization. "The markets are simply not allowing [biotech] companies to go public," said linkurl:Terry Winters,;http://www.the-scientist.com/article/display/53132/ a partner at Phoenix-based venture capital firm Valley...

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