Tag Archives: Industry Analysis

Small Biotechs Spending Less

The median and mean operational cash spending for small public US biotechs (less than 250 employees) is down 37% and 42% respectively, since the 1st Quarter of 2008. Company cut backs have shown up in the lay-off numbers as well as in the number of drug development projects put on hold. These quarterly numbers give a sense of the direction. For a look at the annual data, here is how spending breaks down for the Read More >

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1 in 4 Biotechs Above 100% – Waterfall Chart YTD

Year to date,  27% of biotech stocks have doubled in price. 65% are in positive territory in 2009, a strong contrast to the YTD data last year:

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The Rise and Fall of Undervaluation

If “price to cash” is a usable metric for fair value of a risky biotech (i.e. valuation of a biotech vs what its cash balance is at the bank), then the cheap times are long gone. Back at the end of 2008 we had a record 24% of biotechs trading below cash. Investors were making the assumption that the previous reported cash balance was already being spent and additions to the balance were in jeopardy. Read More >

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