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Is SVB Failure A Sign Of More Uncertainty On The Horizon?

Investors, Advisors Weigh In On Economic Outlook

 
• By Mandy Jackson

The Silicon Valley Bank shutdown was a shock but is not likely to harm the biopharma financial ecosystem long term. The bigger near- to mid-term factor is inflation due to its impact on interest rates.

Dominoes falling in the dark
It remains to be seen if the SVB failure is the sign of more banking dominoes to fall • Source: Shutterstock

The failure of Silicon Valley Bank was a shock to biotechnology and high-tech companies that had come to rely on the bank over the past few decades. But while SVB’s failure was unfortunate, it should not have lasting effects on the biopharma industry, investors and investment bankers told Scrip, since other banks are likely to step up to fill the void.

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