Will Lehman’s Collapse Affect the Pharmaceutical Industry?

By Fintan Walton

Pharma Deals Review: Vol 2008 Issue 100 (Table of Contents)

Published: 19 Sep-2008

DOI: 10.3833/pdr.v2008.i100.139     ISSN: 1756-7874

Section: Business Commentaries



lt;pgt;The collapse of Lehman Bros in New York could well add to the prospects of a recession, to which, historically, the pharmaceutical industry has been relatively immune. But if funding becomes even more risk averse than it is now, it is likely that early-stage biotechs will be most affected. One view is that things will get worse for biotechs because the financial markets will be so risk averse that no investor will back companies with any risk profile. A second view is that, until now, investors have not been interested in biotech because there were too many other attractive investments.lt;/pgt;

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