The bar has also risen on Venture Capital money and is harder to get, and so much of the research is still in the “Science” stage, there have been a few companies that have had failed products and just folded up and went away. This certainly leaves the door open for Pharma, who has the financials to be put in the decision arena, but as far as risk and being a science, that part has not changed. BD
The financial crunch is shaking the foundation of the global biotech industry, threatening to slow the development of new medicines and cut high-tech jobs in the U.S. and Europe.
Many small biotech firms are expected to file for bankruptcy, cancel drug trials, lay off workers or sell out to large companies over the coming year, industry executives say.
“The whole way of doing business is gone, at least temporarily. Companies that don't have a lot of cash or assets to generate cash" are in jeopardy, said George A. Scangos, chief executive of Exelixis Inc., a South San Francisco, Calif., biotech company.