Comments on: Discover This: Now, Biotechs Want A Bailout

By: kurye

kurye — Thu, 18 Jun 2009 14:38:27 +0000

Discover This: Now, Biotechs Want A Bailout // Pharmalot great article thank you.

By: osagi

osagi — Wed, 01 Apr 2009 06:37:45 +0000

It’s whether two of U.S. three surviving domestic carmakers should be forced bankruptcy and even what kind of cars {e.g. volvo parts cars, bmw, chevy, etc.} should be produced.

By: pharmavet

pharmavet — Wed, 10 Dec 2008 18:17:50 +0000

Fine. As long as the biotechs are willing to grant Uncle Sam a 30 year royalty bearing license in addition to paying back the loans.

By: G Little

G Little — Wed, 10 Dec 2008 15:50:34 +0000

I have to agree with Christoper - Where will all this end? As tempting as government funds would be to accept, the bottom line is that even in good times biotech, and the basic R&D to get there is all about risk. It’s not an easy task to bring your ideas to market and profitability. I know first hand. I have visited some of these biotech companies here and the Europe for business development or acquistions. (There are some outstanding deals out there) The fact of the matter is that even in good times their cash burn rate (and you can tell by just looking around) was out of control. I planned for the best of times and the worst of times - and currently it looks pretty bleak in terms of the overall ecomony, but I’ll make it. I’m not going to go to the government asking for a hand out for something I knew up front would have risks. Maybe because it is my money at risk that I have been more prudent with my financial decisions regarding development and/or acquistions. I just don’t care to bail other companies out because of poor decisions especially when I have attempted to create value without all the bloat of frills and large staff.

By: Ed Silverman

Ed Silverman — Wed, 10 Dec 2008 13:35:40 +0000

Hi Christopher,

Thanks, although it should be noted that the reporting was done by the NYT and I conveyed or summarized, as the case may be (please note the credit and links).

In any event, handouts can be hard to come by, so who wouldn’t consider lining up? The list is endless. What about web sites that cover the pharma industry and are running up against a tight advertising environment. Will government let new media sink? Just being rhetorical, of course.

My guess is that biotechs and their backers will argue vociferously that they represent one of the last American bastions of innovation and, therefore, hope. After all, if everything is being made in China, what does the US have left but brain power and patents that generate cash? Let those folks die on the vine and who knows what will happen? Would love to see those discussions webcast.

Cheers
ed

By: Christopher

Christopher — Wed, 10 Dec 2008 13:25:05 +0000

Great article Ed. Makes me wonder where will all this end - which is the next industry looking for subsidy/bail out. Good point about the high risk nature of biotech and the likeliehood of the govt getting its money back. Sceptics could say it’s like asking for an advance on the lottery that you might win which of course you would pay back later.

The political angle is far less acute in this industry than in the auto industry for example. With only 200,000 or so employed the gain is minor relative to the millions affected by Detroit’s problems. Could be argued that each one has created its own issues through backing the wrong development candidates and/or failing to kill the wrong ones early enough. So I’m not sure that the impetus is there in the same way as it was for the auto manufacturers.

Not sure this will fly, nor convinced that it should.

By: Dan A.

Dan A. — Wed, 10 Dec 2008 13:08:27 +0000

Even though I do not get tax breaks associated with corporations, I still consider myself technologically innovative, so will my government bail me out as well for my future potential and contribution to our economy?