BioCentury
ARTICLE | Finance

SURVEY: Small biotechs tighten belts, seek alternative funding to avoid low-valuation deals

As valuations plunge, biotechs seek alternatives to equity and acquisitions

April 25, 2020 1:48 AM UTC
Updated on Apr 25, 2020 at 5:35 PM UTC

Small biotechs are treading water through the market downturn, conserving cash to avoid being scooped up or forced into asset deals at reduced valuations.

A survey of 106 biotech companies by BioCentury and investment management firm Sanford C. Bernstein found biotechs are opting to defer equity financings and acquisitions, aiming to manage their way through the COVID-19 crisis by forming partnerships, cutting spending on payroll and programs, and taking on debt...