Biotech Startups Hoping to “Thrive” Amid Coronavirus Chaos
Drug startups raised $16.6 billion in venture capital last year, the second highest total for the decade behind the $18.6 billion they secured in 2018, according to PitchBook Data Inc. Last year, 50 biotechs went public, and the median pre-money valuation for biotech initial public offerings reached a record $337 million, according to Silicon Valley Bank. The new Coronavirus forces small drugmakers to adapt.
When new offerings resume, IPO hopefuls will face investor questions about their ability to operate in spite of the uncertainty, he added. “They’ll have to make a strong case as to why they can move their programs forward despite the changing environment,” Dr. Charest said.
Source: Wall Street Journal March 31 2020 – read the complete article here
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