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Finance Watch: Days Of Reckoning As Biopharma Valuations, Fundraising Opportunities Fluctuate

 
• By Mandy Jackson

Biotech stock indices have seen a recent recovery but remain well below their 2021 peaks raising questions about the likelihood of raising money for R&D. The number of companies announcing leadership changes, shifting pipeline priorities and job cuts is rising as a result.

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With the Nasdaq Biotechnology Index (NBI) and the closely watched XBI biotech fund down 13.2% and 18.9%, respectively, so far this year and 20.3% and 43.6% below where they were trading a year ago, many drug developers, whose stocks may be trading at even lower levels, are battening down the hatches and figuring out how to weather the storm.

The market reality has gotten so bleak that an increasing number of biopharmas are turning to stop-gap measures, such as shifting research and development priorities, cutting jobs and even changing up top management – or some combination of the three – to

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