Magazine Article | September 1, 2022

What Can Preclinical Or Early-Stage Biotech Companies Do In The Current Market To Better Access Needed Capital And Resources?

Source: Life Science Leader

I’D SUGGEST PRIORITIZING R&D, EXTENDING RUNWAYS, AND ACTING SWIFTLY. All projects are valuable, but not all may be able to be funded in this environment. Which program(s) are most valuable? Sometimes it’s not the lead program. Prioritizing becomes key. Although the last few years saw abundant capital raised, we also saw burn rates increase substantially, leading to many companies having to raise capital again soon. Investors are interested in funding not only to the next inflection point, but beyond. Attempting to have enough runway to weather a longer downturn becomes crucial. Lastly, it’s important to act swiftly regardless of the strategic direction the company decides to take. Find out what the shareholder base wants, what the right “clearing price” is, and raise the capital before options dwindle.

DENNIS PURCELL is founder and senior advisor at Aisling Capital LLC.