There’s no doubt that managing a biotech company is an enduring challenge, even during less tumultuous economic times. Now, entrepreneurs are contending with resources that are incredibly tight, an economy that is unsettled, a stock market on a roller-coaster ride, and research and development budgets that are being slashed. The stewardship role entrusted to the management teams of biotech companies has become especially tricky as they are required to make tough choices that balance the needs of investors and the pursuit of scientific discovery. They must also manage the chaotic world of innovation within the regulatory boundaries of FDA approval process, and give freedom to creative scientists without letting go of the fiscal discipline.
So how are biotech companies handling the pressure? At BDO USA, our analysis of the 10-K SEC filings of publicly traded companies listed on the NASDAQ Biotechnology Index (NBI) over the last four years provides a window into the impact of the economic turmoil on biotech’s operations, and strategies that management teams are using to remain financially viable. For the purpose of the analysis, biotech companies were classified as “large” (between $50 million and $300 million in revenue) and “small” (less than $50 million in revenue).
To read the full, original article click on this link: Innovate or Conserve Cash? The Growing Dilemma for Biotech Firms | Xconomy
Author:
Aftab Jamil
