The Cross-Border Biotech Blog

Biotechnology, Health and Business in Canada, the United States and Worldwide

Tag Archives: Burrill & Co.

Biotech’s Murky IPO Window Increases M&A Attractiveness

A recent press release from Burrill & Company points out that only 1 of 8 U.S. biotech IPOs in 2010 is currently trading above its IPO price. IMRIS was the last Canadian biotech IPO, completed in November 2007 at $6.00, and it is currently trading at $5.50 after dipping under $2 in late 2008. Facing these difficult public markets and limited treasuries, it is not surprising to see Canadian VCs opting to sell companies in their portfolios, including the recent sales of two companies with revenues. Toronto’s Visualsonics was sold to U.S.-based SonoSite for about 2.4 times Visualsonics’ trailing 12-month sales of $30 M. Montreal’s Resonant Medical was sold to Swedish company Elekta for about 3 times expected 2010/2011 revenue of $10 M.

Anyone Else Short on Cash?

Yesterday, the WSJ Health Blog picked up on Burrill & Co.’s report, noting that one-third (120 out of 360) of publicly-traded U.S. biotech companies have under 6 months’ cash left, a figure that sounds depressingly familiar…

In the UK, the BioIndustry Association put out a press release January 27 that said:

The current situation is grave – approximately a third of publicly quoted UK bioscience companies have less than six months cash remaining. 

And here in Canada, BIOTECanada’s latest Parliamentary Quarterly (pdf) includes this nugget:

As of December 2008, over 25% of Canadian biotechs have less than 6 months cash remaining and … for smaller public companies, more than 40% have less than 12 months cash remaining. 

So please, give now.  And if you can’t spare the cash, pick up a pipette and go volunteer.  Every microlitre counts. 

Seriously, this is ugly.  Check out the Biotech Bailout page and toss an idea into the ring.

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