Biotech business in the UK might go bust
The global financial crisis has no mercy — it seems to be affecting every sector, biotech included. Last week a number of US companies lost their funding, and the same might happen to the biggest United Kingdom’s biotech companies. The main reason is because investors are backing up — mostly because the promised drugs were not delivered.
22 biotech leaders have signed a dossier, which says that the biotech sector is at “breaking point” and requires “fundamental” changes, was sent to the UK’s the Prime Minister, Gordon Brown. What the leaders proposed is creating 2 funds — one for the consolidation of smaller biotech businesses, and another one for the ones who have growing aspirations. Each fund would be around $730 million (50% public, 50% private).
The letter claims that that the companies’ managements have focused too much on the research, and very little on the actual commercialization of the products.
“There is just no cash available at any stage, from any source, for any type of biomedical company,” said Sir Christofer Evans, the founder of the investment house Excalibur, who led the leaders who sent the report.
Source: telegraph.co.uk/finance/newsbysector/pharmaceuticalsandchemicals/3551180/UK-biotech-bosses-call-for-Government-rescue.html
