http://www.pharmalot.com/2008/10/cash-rich-drug-poor-pharma-the-credit-crisis/ News, Comment and Conversation Fri, 10 Feb 2012 22:29:41 +0000 http://wordpress.org/?v=2.6.2 http://www.pharmalot.com/2008/10/cash-rich-drug-poor-pharma-the-credit-crisis/#comment-378133 Tim Scott Wed, 15 Oct 2008 17:31:27 +0000 http://www.pharmalot.com/?p=16519#comment-378133 The pharma industry is not only made up of large pharma that are publicly held but also small and virtual pharma companies that are VC backed and mid-sized and microcap companies, many of which are public. The VC-backed companies are in a good position because the VCs long ago gave up on IPOs and are now looking to package and sell their companies to Big Pharma. This is a good relationship: the big Pharmas have cash but no innovation; the small/virtual pharmas have the innovation and want to sell it. The mid-sized and microcap pharmas are more of a question mark. Many are public but still are cash starved. They can't access money in the public markets and the private sources, like PIPES, are no longer available. These are the companies that I'm concerned about. The pharma industry is not only made up of large pharma that are publicly held but also small and virtual pharma companies that are VC backed and mid-sized and microcap companies, many of which are public. The VC-backed companies are in a good position because the VCs long ago gave up on IPOs and are now looking to package and sell their companies to Big Pharma. This is a good relationship: the big Pharmas have cash but no innovation; the small/virtual pharmas have the innovation and want to sell it. The mid-sized and microcap pharmas are more of a question mark. Many are public but still are cash starved. They can’t access money in the public markets and the private sources, like PIPES, are no longer available. These are the companies that I’m concerned about.

]]> http://www.pharmalot.com/2008/10/cash-rich-drug-poor-pharma-the-credit-crisis/#comment-378021 Jim White Tue, 14 Oct 2008 18:12:44 +0000 http://www.pharmalot.com/?p=16519#comment-378021 Or they will do as Abott recently announched, and buy back their stock, all while trimming or flat-lining their R&D budgets. Or they will do as Abott recently announched, and buy back their stock, all while trimming or flat-lining their R&D budgets.

]]> http://www.pharmalot.com/2008/10/cash-rich-drug-poor-pharma-the-credit-crisis/#comment-377999 Christopher Tue, 14 Oct 2008 13:25:58 +0000 http://www.pharmalot.com/?p=16519#comment-377999 Some would argue that companies in many industries, not just pharma, are far better placed to weather the financial storm. (Employees are a different matter.) Because of the willingness to take on such high levels of debt in supposedly better times companies in the financial world have been hammered. More prudent, longer term financial management in non-financial industries has left them less exposed. Its also interesting to see the difference in investment strategies in the companies on the chart. I wonder what Datamonitor charged for that insight? Some would argue that companies in many industries, not just pharma, are far better placed to weather the financial storm. (Employees are a different matter.) Because of the willingness to take on such high levels of debt in supposedly better times companies in the financial world have been hammered. More prudent, longer term financial management in non-financial industries has left them less exposed. Its also interesting to see the difference in investment strategies in the companies on the chart.
I wonder what Datamonitor charged for that insight?

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