IF YOU ARE A SMALL BIOTECH, THE BEST ADVICE IS... never build a straw house. We talk a lot about resilience in the current economy. I have learned that in our uncertain world public offerings are expensive, require a larger team, and the window can close at any moment. You have to spend a lot of money to get ready for an IPO. Technically, it should not be considered a financing event but a change of company status and a liquidation event for the company investors. A previous company I was in once pulled a public offering because the price wasn’t right. I regret that move because the window closed and years later our next public offering was at an even lower valuation. Take the money when you can, even at a lower valuation (make it up by building an excellent company). Always have contingencies built into your pro forma and fundraise. When COVID hit and we needed more of that resiliency, I turned to non-dilutive sources of funding.
PAMELA REILLY CONTAG, PH.D., is CEO and president at BioEclipse Therapeutics.