BioCentury
ARTICLE | Strategy

Spendthrifty

October 14, 2002 7:00 AM UTC

One of the more important benefits of the 1999-2000 funding frenzy was that companies were given enough money to generate broad pipelines. Coming into 2001 flush with cash, CEOs were able to turn up the gas on multiple projects, which led to soaring burn rates. But with the biotech bear market now running 30 months and counting, all but the most well-financed companies have to be thinking about how to conserve cash to get them to the next financing window.

Indeed, the spending brakes now are being applied. In the third quarter, at least 27 U.S. and nine European companies cut clinical programs and reduced headcounts. ...