1Q Financial Markets Review

Europe: Maybe enough cash

Throughout Europe valuations have tumbled across the board, with BioCentury's London Index no longer defying gravity, and blue chip biotechs like Celltech Group plc (LSE:CCH; CCL, Slough, U.K.), Shire Pharmaceuticals Group plc (LSE:SHP; SHPGY, Basingstoke, U.K.) and Qiagen N.V. (NMarkt:QIA; QGENF, Venlo, the Netherlands) reflecting the general demise. While prices have bounced somewhat of late, the prospects aren't encouraging for cash-poor companies.

Indeed, the European predilection for doling out modest rounds of funding looks to be ripe for debate again, as companies assess their prospects for competing with the balance sheets that were fattened up in the U.S. before the window slammed shut.