Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot

    A stunning’ 4% yearly rise in R&D share has emerging biopharma dominating the pipeline

    March 31, 2023

    Under pressure, biotech and pharma grapple with how to take climate action

    March 30, 2023

    Antibody-patent row could have far-reaching impact on biotech

    March 29, 2023
    Facebook Twitter Instagram
    Your Biotech
    • Bio Technology

      A stunning’ 4% yearly rise in R&D share has emerging biopharma dominating the pipeline

      March 31, 2023

      Under pressure, biotech and pharma grapple with how to take climate action

      March 30, 2023

      Antibody-patent row could have far-reaching impact on biotech

      March 29, 2023

      Alan Kohler: Australia’s biotech sector has suddenly got much bigger

      March 28, 2023

      Why Do So Few Biotech Startups Want To Be The Next Big Pharma Company?

      March 27, 2023
    • Pharmaceutical

      Pharma company owner duped of ₹1.1 crore

      November 11, 2022

      Novavax cuts full-year revenue forecast again amid weak demand

      November 10, 2022

      Aurobindo units recall products in US market for manufacturing issues

      November 9, 2022

      AASLD 2022 | Ascentage Pharma Releases Phase I Results of IAP Antagonist APG-1387 in an Oral Report Showing Potential for Functionally Curing CHB

      November 8, 2022

      Trade Spotlight | What should you do with Amara Raja, Sun Pharma Advanced Research, Poly Medicure on Monday?

      November 7, 2022
    Your Biotech
    Home»Bio Technology»SVB fall casts shadow on early-stage U.S. biotech
    Bio Technology

    SVB fall casts shadow on early-stage U.S. biotech

    yourbiotechBy yourbiotechMarch 15, 2023Updated:March 15, 2023No Comments2 Mins Read
    Facebook Twitter Pinterest LinkedIn Tumblr WhatsApp VKontakte Email
    Share
    Facebook Twitter LinkedIn Pinterest Email

    The collapse of Silicon Valley Bank (SIVB.O) will leave early-stage biotechnology companies with a funding void, investors and analysts said on Monday, but larger, publicly-traded drug companies should escape unscathed.

    About 50% of U.S. biotech companies, developing drugs for everything from cancer to heart disease and rare conditions, banked with Silicon Valley Bank (SVB), including a large number of private firms, according to WBB financial analyst and managing partner Steve Brozak.

    Analysts said the direct impact to U.S. biotech companies overall was limited, although several drugmakers such as Axsome Therapeutics Inc (AXSM.O) and Rhythm Pharmaceuticals Inc (RYTM.O) disclosed cash deposits with the bank. Vir Biotechnology Inc (VIR.O) had some $220 million with SVB. “It’s a pretty profound situation. Everyone that has been in the (biotech) business has amassed respect for SVB as a brand both on the commercial side as well as the investment banking side,” said Robert Williamson, chief business officer at Triumvira Immunologics, which does not have exposure to SVB.

    Startup-focused lender SVB Financial Group last week became the largest bank to fail since the 2008 financial crisis, sending shockwaves through the global financial system and prompting regulators to step in to contain the fallout.

    Analysts said the situation would have been far worse for biotechs had the U.S. government not stepped in over the weekend and promised depositors would have access to their money on Monday.

    SVB’s demise likely leaves smaller biotech clients without an alternative lender, said Brozak, since other banks will now probably raise their funding thresholds to points that make investment difficult for smaller entities. Where are they going to get their money?” said Brozak, with one of the industry’s major lenders out of the game.

    One healthcare investor who spoke on condition of anonymity said SVB’s absence meant fewer companies financed and biotechs paring back pipelines of medicines in development. “There’s definitely going to be a winnowing of the herd,” he said.

    The full effect of SVB’s collapse on the sector may not be seen for some time because of the different reporting requirements for SVB’s non-public borrowers. While public companies have to disclose their exposure in deposits, loans and liabilities with SVB, in line with the U.S. Security and Exchange Commission’s major event reporting requirements, private companies can decide whether or not to tell investors about the level of harm suffered.

    Share. Facebook Twitter Pinterest LinkedIn Tumblr WhatsApp Email
    Previous ArticlePfizer To Acquire Cancer Treatment Biotech Firm Seagen For $43 Billion
    Next Article Pfizer is buying cancer biotech in one of the biggest pharma deals in history
    yourbiotech
    • Website

    Related Posts

    A stunning’ 4% yearly rise in R&D share has emerging biopharma dominating the pipeline

    March 31, 2023

    Under pressure, biotech and pharma grapple with how to take climate action

    March 30, 2023

    Antibody-patent row could have far-reaching impact on biotech

    March 29, 2023

    Alan Kohler: Australia’s biotech sector has suddenly got much bigger

    March 28, 2023

    Leave A Reply Cancel Reply

    Our Picks

    Subscribe to Updates

    Get the latest creative news from SmartMag about art & design.

    About Us
    About Us

    We provide a wide range of customized, integrated B2B and B2C digital marketing services solutions that are ideal for your business.

    We're accepting new partnerships right now.

    Email Us: info@yourmartech.com
    Contact: +1-530-518-1420

    Our Brands
    • Your Martech
    • Your HR Tech
    • Your Fin Tech
    • Your Revenue
    • Your Info Tech
    • Your POS Tech
    • Your Health Tech
    SUBSCRIBE NOW
    Loading
    LinkedIn
    • Privacy Policy
    © 2022 Vigarbiz Inc. Designed by Vigarbiz Media

    Type above and press Enter to search. Press Esc to cancel.