Opportunity Knocks for Big Pharma in Credit Crunch

A good article regarding the impacts of the economic situation on the Pharma market over at FierceBiotech...

The primary consequence of the credit crunch for non-financial companies is the loss of access to cheap debt

LONDON, Oct. 8, 2008- The key impact of the credit crunch on the corporate world is the abrupt loss of cheap debt. During the late 1990s and 2000s companies across all industries have exploited easy access to cheap debt to amplify or ‘leverage' their return to investors. However, triggered by the sub-prime crisis and the subsequent collapse of big name financial institutions, banks have no choice but to protect their own capital and stop lending - turning off this supply of cheap debt.

This leaves those companies that have taken on debt in the extremely uncomfortable position of having to either rapidly pay off their debts (‘deleveraging') or re-secure new debt at much higher interest rates - potentially threatening the viability of the firm. Datamonitor believes that large pharmaceutical companies have wisely stayed out of the cheap debt game and as a result, the credit crunch will actually play out as a net positive for an industry much in need of good news, according to Datamonitor head of company analysis Dr. Chris Phelps. "Pharma companies are not only expected to weather the financial storm successfully but to also use this period to exploit their unique cash strength by embarking on an acquisition spree."

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The Fierce 15 is out!!!

Just in case there isn't enough risk in earning your paycheck in the BioPharm industry...

and you want to actually invest money in these companies...

maybe even you own money...

FierceBio's Fierce 15 is out...

enjoy...

Nanotech is promising, but faces hurdles

The latest editorial from John Carroll at FierceBio, as usual, an interesting read...

Dwight Seferos, PhD, a researcher at the International Institute for Nanotechnology at Northwestern University, held a sizable audience in thrall for nearly an hour at the 13th European Federation of Biotechnology meeting in Barcelona.

He had a good topic. Researchers at the institute have used oligonucleotides--a short piece of DNA known for its ability to bind to complementary DNA--to effectively disperse nanomaterials inside a variety of cell lines. There's good potential to use this technology to dispatch nanoparticles inside a patient's body to deliver therapeutic agents, Seferos told the group. The same approach, for example, could be effective in targeting cancer cells, killing them or leaving them vulnerable to chemotherapy.

Chad Mirkin, the director of the institute and a founder of Nanosphere and NanoInk, has been a leader in using atomic force microscope tips to make nanoscale materials, putting on one atomic layer at a time as he delves into a world that is one to 100 nanometers in size.

Translating that kind of technology to the bedside won't be easy, though--particularly in Europe, where government regulators have turned a cold shoulder to expensive new therapies. That message was sent loud and clear just a few hours after Seferos wrapped his presentation.

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