An article by Robert Weisman in the Boston Globe on Oct. 1, 2009, discussed a general concern by life sciences executives regarding the funding squeeze in drug research. As large pharmaceutical companies consolidate and capital availability for biotechnology start-ups shrinks, funding for innovation has become more scarce.
A large amount of capital is necessary to develop a drug and bring it to market which has traditionally been raised through venture capital firms and private investors. However, these backers have become increasingly concerned with prolonged drug development periods and decreased IPO activity. The financing pool has also been shrinking since big pharmaceutical companies have been acquiring each other. As a result, interest in small and mid-sized biotechnology companies has decreased, hindering the funding of drug research.
Since an increasing number of biotechnology companies compete for a smaller pool of money, scaling up public relations and investor relations activities help companies reach the appropriate investors. At Russo Partners, we apply a rigorous corporate communications program that assists our clients achieve their financing objectives.
