In Vivo is part of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC’s registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

This copy is for your personal, non-commercial use. For high-quality copies or electronic reprints for distribution to colleagues or customers, please call +44 (0) 20 3377 3183

Printed By

UsernamePublicRestriction
UsernamePublicRestriction

Leading a Biotech Through Crisis

This article was originally published in Start Up

Executive Summary

Given the cyclical nature of the biotech industry, companies--both public and private--are forced to weather financing storms every few years. During lean times, one strategy is to cut operations to create the basis for a financing event and stave off the inevitable cash cliff. But a company focusing all its efforts on one, or at most a few, projects has very little to fall back on should its lead opportunity fail. And the equity markets may not come back in time. BioTransplant's CEO-Donald Hawthorne, brought in to save the company, understood from the beginning that companies with just a few months of cash left tend to fail. His challenge: to avoid failure, while at the same time maximizing the chance that in the event of bankruptcy, at least some of the assets of the company could create additional value.

You may also be interested in...



Biotechs on the Brink Choose Last-Minute Deals, Not Liquidation

Many biotechs, facing crisis situations in the fall of 2002, opted for deals that kept them alive but hardly offered much hope for upside. But in the coming months, boards may need to be far more realistic about their long-term prospects and consider a full range of options, including liquidation, when assessing a company's future.

Biotech Layoffs Hit Hardest In Discovery

As the financing drought continues and their cash supplies dwindle, biotechs are resorting to big layoffs to drastically cut back on spending (See exhibit 1). But however rigorous a company's turnaround effort, the target of the layoffs always seems to be discovery research, with the remaining employees focusing on clinical programs.

BioTransplant: Turned on to Tolerance

Thousands die each year of end-stage organ failure. Transplantation is the preferred therapy, but there is a chronic shortage of human organs and organ rejection remains a problem. Bringing xenotransplantation to market has become a big company affair, but BioTransplant is a biotech still looking to win a piece of the market through an unusual partnership and unique technology.

Related Content

Topics

Related Companies

UsernamePublicRestriction

Register

SC090797

Ask The Analyst

Ask the Analyst is free for subscribers.  Submit your question and one of our analysts will be in touch.

Your question has been successfully sent to the email address below and we will get back as soon as possible. my@email.address.

All fields are required.

Please make sure all fields are completed.

Please make sure you have filled out all fields

Please make sure you have filled out all fields

Please enter a valid e-mail address

Please enter a valid Phone Number

Ask your question to our analysts

Cancel