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How do R&D biopharmaceutical companies cope with the challenge of tight cash flow?

 Last Update: 2022-09-06
 Source: Internet
 Author: User

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At the time of the financing winter, VC/PE investment is more cautious, and the overall market in the secondary market is in a turbulent adjustment stage

Listed companies: Plan ahead for early financing

Unlisted companies: Priority will be given to key projects

For unlisted biomedical R&D companies, facing the unfavorable environment of capital winter, declining valuation and financing difficulties, it is first necessary to study and analyze the company's financial situation and project funding needs, and must control expenses and cash flow, and do not arbitrarily expand expenditures

Whether it is a listed or unlisted biotechnology company, when the capital winter financing is difficult and the valuation is declining, the management must adjust its mentality, keep an eye on the money bag, and use the money on the
blade.
At the same time, it is necessary to actively seek alternative financing channels and methods, and actively look for external cooperation transactions and opportunities
.
If you only follow the fixed model, move towards the original research and development ideas, do not do any self-help, and do not integrate with external resources, it is likely to "burn out" the limited funds on the account and become more and more passive
.
If they cannot raise funds, they can only be acquired at a low price, or forced to go bankrupt and reorganize
.

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