Aggregated News
BOSTON (Reuters) - The biotechnology sector looks likely to be hit by a wave of bankruptcies and failures as small companies find themselves out of funding and out of options.
On Thursday, Cell Genesys Inc (CEGE.O: Quote, Profile, Research), which was formed 20 years ago to focus on gene and cell therapies, said it is considering its alternatives, including liquidation of the company, after its experimental prostate cancer drug failed a late stage trial.
Last week, 15-year-old Atherogenics Inc filed for Chapter 11 bankruptcy protection due to an intolerable debt burden that hampered development of its experimental diabetes drug. This week the company's shares were delisted from Nasdaq.
"These are old-school biotech names," said Christopher Raymond, an analyst at Robert W. Baird. "Usually such names can get funding at some level, or someone will buy them before that, so it is very unusual and represents another data point showing that things are not peaches and cream."
The pain being felt by biotech companies who find themselves shut out of the capital markets, or who suffer the blow of a failed...
On Thursday, Cell Genesys Inc (CEGE.O: Quote, Profile, Research), which was formed 20 years ago to focus on gene and cell therapies, said it is considering its alternatives, including liquidation of the company, after its experimental prostate cancer drug failed a late stage trial.
Last week, 15-year-old Atherogenics Inc filed for Chapter 11 bankruptcy protection due to an intolerable debt burden that hampered development of its experimental diabetes drug. This week the company's shares were delisted from Nasdaq.
"These are old-school biotech names," said Christopher Raymond, an analyst at Robert W. Baird. "Usually such names can get funding at some level, or someone will buy them before that, so it is very unusual and represents another data point showing that things are not peaches and cream."
The pain being felt by biotech companies who find themselves shut out of the capital markets, or who suffer the blow of a failed...