Monday, December 24, 2012

Biotech - the bubble bursts in 2013?

Biologicals did not become a panacea for treatment of Big Pharma's R&D crisis. It is obvious that when this fact will be clear for the majority investors the biotech bubble will burst. Can it happen already 2013? Well, probably... To postpone this inevitable development of the situation there is a tendency to improve the image of the biotech like as in case of this article.


Bank on 2013 being a year when real innovators in life sciences with bold ideas look like smart businesspeople, too.



Don't let the spate of recent venture rounds in the lead-up to Christmas fool you. The biotech industry has a money problem, and it's not going to disappear in 2013.



In an innovative industry like biotech, the absence of venture backing is a big deal. And without a new crop of drug developers to take the place of the companies that are being bought out or fail, there will be fewer deals to do in the future. And that means fewer promising drugs for Big Pharma to take up the pipeline.



Like every other industry, biotech is cyclical. But lean times get tiresome. They also threaten to do some lasting damage to the complex ecosystem that supports a diverse group of players.


The message? Biotech bubble needs some more money, otherwise... Are you prepared for this ”otherwise”?

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