The WSJ Health blog has an interesting post this morning on "The Great Biotech Shakeout is Near". Now, that may sound a little alarmist, but since November, 15 have already gone to the wall and the suspicion of a VC firm is that:
In theory, this should be a good time for cash rich pharma and biotech to be shopping for good deals to replenish their pipelines. In reality, our experience is that many are looking keenly, but hoping for a better deal by waiting. Who knows where the bottom of the market might be?
For some baby biotechs, help in the form of licensing deals or buyouts may not come soon enough as their cash dwindles fast and the credit crunch continues to impact business.