Biocurious: Biotechs seek trickle of cash amid capital-raising drought

Résumé détaillé

Figures from Investair show many life-science plays are navigating tighter cash positions in a harsh capital-raising environment. ... Read More The post Biocurious: Biotechs seek…

Furthering medical science for the benefit of all mankind is thirsty work. Any chance of a drink? Pic: Getty Images

Cash is king – and no more so than in the biotech sector that entails spending large wads of money with no guarantee of a return.

Even when drug or device plays generate revenue, they usually incur large losses until full commercialisation kicks in.

According to data from capital markets intelligence platform Investair, 68 reporting biotechs held collective cash of $877 million at September’s end. That compared with $1.61 billion at the end of the June quarter.

Allowing for unused debt facilities and such, total funding stood at $993m. This compared with $1.72bn previously.

Median quarterly cash burn came in at $1.31m, compared with $1.84m previously.

Companies held median adjusted cash of $4.25m, compared with $5.5m in the June quarter.

That makes for a slender funding ‘runway’ of 4.1 quarters, albeit an improvement on the previous 3.4 quarters.

This is based on their reported cash positions, adjusted for unused debt facilities.

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