Will The Finance And Funding Pendulum Swing Back To Black In 2023?

By Ben Comer, Chief Editor, Life Science Leader

You know the story: 2022 has been a slow year for biopharma fundraising, M&As, and IPOs. But with valuations inching down and the 30 largest biopharma companies holding over $87 billion in cash reserves, strategic acquisitions may begin to pick back up next year, according to RSM, a financial services firm. Since necessity is the mother of invention, it’s also possible that more companies will explore alternative financing options — such as exchanging future product royalty streams for an up-front payment, crowdfunding, licensing technology, or manufacturing capacity — or getting prayers answered by an angel (investor). Clinical stage companies that manage to find a way to keep some fuel in the tank during the current downturn will be well positioned to hit the gas when economic conditions improve.