Cash Poor Biotech Firms

Interesting article in the Wall Street Journal about the impact that the global crisis in liquidity will have on small biotech firms. According to the article:

"In the U.S., 38% of 370 small biotech companies are operating with less than a year's worth of cash, and nearly 100 publicly traded biotech companies have less than six months' cash..."

Unless these companies find capital....the majority of them will cease to exist.

Bottom line: For the sake not only of the Pharma/Biotech industries, but for the sake of the economy in general, we have to find a way to increase the flow of capital. Without access to capital,
good ideas are never developed and good companies cease to exist.