2Q Financial Markets Review: Hard decisions loom

The biotech selloff has contracted multiples for profitable companies and lowered technology values for development stage companies. While the former will survive - and even trade up if a multiple expansion occurs - there are many more unknowns in the latter group.

With little value being accorded future products, many companies in the group are trading at or near cash. And since these companies are burning cash, that number has nowhere to go but down. With no offerings window in sight, there is a growing number of companies with less than a year or two of cash. ...