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

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

Among the listed biomedical companies, many may have products on the market, but the sales of the products are still small and still not profitable; Or there are no products on the market, but multiple products are in the late stages of clinical research, or clinical trials have been completed and submitted to the NDA for approval

These companies are still in the "burning money" stage, and there is still a year to go before they become profitable

Hundreds of biomedical companies in the United States have gone through such a process, and achieving profitability usually requires at least 10 years of arduous process

PIPE is often based on the company's stock price at that time, financing needs, scale and use, as well as additional conditions, debt-to-equity swaps, interest and discounted prices, etc.

At present, for biotechnology companies that are not yet profitable, under the premise of compliance, they can try to do follow-up 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

For research projects, it is necessary to consider

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