SVB Failure Could Exacerbate Tight Credit, Drive Biopharma Consolidation

An economist told Scrip that banks could become more cautious about handing out loans to biotech start-ups, driving more M&A in the sector.

The DOJ has reportedly begun an investigation into SVB after the bank's failure on 10 March • Source: Shutterstock

While the immediate danger of depositors being unable to access their accounts at Silicon Valley Bank (SVB) seems to have subsided thanks to the government stepping in to protect deposits, SVB’s collapse may have longer-term implications for biopharma start-ups that could find an already tight funding environment growing tighter.

According to news reports on 14 March, the Department of Justice has opened an investigation into the 10 March failure...

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