Finance Watch: Biopharma Reckoning Brings Restructuring Plans, Consolidation

The ongoing reckoning among biopharmaceutical companies that are running out of cash and unable to raise new funds – either because of a lack of near-term upcoming milestones or missed milestones – is leading to more companies laying off employees to save whatever money they have left, or shutting down completely. This trend is shifting, however, with some firms deciding to combine their resources and soldier on with existing cash for as long as they still can.

Rubius Therapeutics, Inc. was not one of the lucky ones able to find a suitable alternative to shutting down after it announced in November that it would begin a search for strategic alternatives, which might have included a merger of the red blood cell therapeutics firm with another entity or an outright sale of the company and its assets