BioCentury In Depth
After the longest bull run in biotech history, the sector is in a prolonged downturn. IPOs have dried up, follow-on financings have fallen off a cliff, and venture rounds take seemingly forever. For insights on how to navigate today’s bear market, explore this BioCentury In Depth collection: Surviving a Bear Market.
ARTICLE | Finance

Looking for light at the end of biotech’s bear tunnel

3Q22 Financial Markets Preview: As pain grinds on, signals that biotech may be on road to recovery

July 8, 2022 7:22 PM UTC

Investors expect more near-term pain for the biotech sector as a run of consolidation continues for small and micro-cap companies with limited cash and few options for raising more. There are signs that biotech may be on the road to a recovery, but if this is the bottom of the market, it’s unclear how long it’ll last.

A barren financing landscape continues to plague biotech as specialists seek out a few highly competitive PIPE deals with a focus on late-stage assets. That’s left early-stage companies to a Darwinian existence, with investors expecting more consolidation across the sector...