The Biotech Industry Organization (BIO) this morning released a set of statistics that give a rather dire snapshot of the industry's health. Here are some of the highlights -- or, should I say, lowlights -- straight from their roundup:

Image: flicker:Kaibara87

- 120 companies (30%) are now trading with less than 6 months of cash on hand. This represents a jump of 90% over the number of companies with less than 6 months cash on hand in 2007. (source: BIO)

- 180 companies (45%) have less than 1 year of cash remaining. This represents a 65% jump vs. 2007. (source: BIO)

- Only 10% of the 370 public US biotech companies have positive income [cash flow].(source: BIO)

- By comparison with 2007, funds raised from initial public offerings in 2008 fell 97% and follow-on/secondary offerings [a second round of stock issuance after an IPO] fell 56%. Total capital raised by the industry in 2008 fell by 55% vs. 2007. (source: BioCentury).

- In 2006, 32 life sciences companies raised $1.7 billion through IPOs. In 2007, 41 raised $1.9 billion. In 2008, there was only one IPO in the US, which raised $5.8 million. (source: BioWorld)

- 87% of US biotech stocks lost value in 2008.

- More than 80 companies laid off more than 5,000 employees in 2008, and 34 biotech companies have laid-off 10% or more of their workforce since September, 2008. (source: BioWorld, BIO)


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Sluggish economy hits biotech
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The birth of biotech
[December 2007]