High Growth Biotech Firms Zalicus and Sequenom Ready for Knockout Fourth Quarter
October 13, 2011 08:16 ET
High Growth Biotech Firms Zalicus and Sequenom Ready for Knockout Fourth Quarter
The Bedford Report Provides Equity Research on Zalicus and Sequenom
NEW YORK, NY--(Marketwire - Oct 13, 2011) - The biotech industry is generating significant investor interest this year as an influx of new and lucrative therapies work their way towards regulatory approval. While younger, unprofitable firms are having difficulty securing funding, reports suggest biotech companies with promising pipelines should be able to secure necessary capital. The Bedford Report examines the outlook for companies in the biotechnology industry and provides equity research on Zalicus, Inc. (
[ www.bedfordreport.com/ZLCS ]
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According to a recent report from Ernst & Young, US biotech companies raised $25 billion last year -- a 15 percent jump over the previous year and the highest amount since 2007. Of concern is that more than 82 percent of that funding went to 20 percent of the companies. Younger, unprofitable companies in the US that depend on funding from venture capital firms, stock sales and partnerships saw available capital decline 21 percent in 2010.
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The importance of maintaining a steady pipeline of drugs to market is having varied effects on the biotechnology industry. Analysis by the professional services firm BDO argues that larger pharmaceutical firms are increasing reliance on biotech companies to fill their pipelines, which has been a net positive for small biotech companies.
According to Thomson Reuters, on average biotech companies in the NASDAQ Biotechnology Index (NBI) spent $54 million on R&D in 2010, reflecting a 7 percent decline from 2009.
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