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Cash on Hand For 2Q09 - Crisis Stabilized?

November 20, 2009
Is the current crisis stabilizing? The latest numbers are for 2Q 2009 (June 30th): 27% of public US biotechs have 6 months of cash, 39% have 1 year of cash left.

Note that some companies have been able to raise cash in the public markets (in the form of “Follow-On Offerings”, “Private investments in Public Equity” (“PIPEs”), and even debt). Thus, although some companies had only a year of cash left a year ago, they now have a fresh year’s worth of cash. We also lost a few companies, so the % is somewhat stabilized as the denominator (the # of companies) drops. The numbers were at their worst in Sep 2008, with 28% and 45% for 6 months and 1 year, respectively.