BioP2P Staff
The uncertain economic climate has industrial biotechnology investors reticent to back big ticket projects with long timelines, according to a report in C&EN.
Industry leaders expect biomanufacturers to focus on small projects until it gets easier to raise money. Even though the production of high-volume commodities through biomanufacturing is seen as potentially lucrative, the near-term industry focus is expected to be on high-value chemicals for small markets where it is easier to compete against petrochemical alternatives, Matt Blois, associate editor of C&EN writes.
The report said, in the current environment, investors are reluctant to make large investments that will take many years to pay off.
“You can’t burn cash for 30 years,” said Brentan Alexander, chief investment officer for the biotechnology financing firm Synonym told C&EN. He said companies need a “compelling growth story.”
Read the article here.