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Cash Runways Dry Up, Creating A ‘Complex’ Road Ahead For Biotech

EY Beyond Borders Report Highlights Cash Drought

 
• By Jessica Merrill

More than half of emerging biotech companies have less than two years of cash to fund operations, according to EY’s Beyond Borders report.

dry faucet
The flow of cash into biotech is running dry • Source: Shutterstock

The biotech financing environment appears poised to remain a top concern for young start-up companies, which are having to make difficult decisions about capital allocation. The number of biotechs that are down to one or two years of cash is eye-catching, according to a new report from the consulting firm EY covering the state of the biotech industry.

Key Takeaways
  • More than half of emerging biotechs do not have enough cash to sustain operations for two years.
  • M&A could return investors to biotech and big pharma...

EY’s Beyond Borders report was released on 6 June, coinciding with the BIO International Convention in Boston on 5-8 June, spotlighting what the firm called a “complex” path forward for...

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