Biotech bailout: Thanks but no thanks

Last week we ran a poll questioning whether or not the biotech industry deserves a bailout. Below are the results.

As you can see, only a small majority of readers felt that government assistance was a bad idea. However, those who emailed me about the question were largely opposed financial assistance. As one person noted, "the devil is in the details." Readers expressed concerns about how the money would be distributed, and whether those government dollars would come with serious strings attached. Several respondents felt that the industry deserves government support, but that it should come in the form of tax incentives and funding for agencies like the NIH--not from a handout. Take a look at what they had to say.

• The problem with a bailout for biotech is how it would be administered. There are hundreds of small companies in need of additional funds. Who gets to decide who gets money and who does not? There is no system in place and giving funds to VC firms and letting them decide would just allow them to support lower-risk, later-stage companies, killing off more of the early start ups. It is a good idea to support biotechnology, but as usual the devil is in the details. - Anonymous
  
  
• In general, I think bailouts offer few benefits over the long haul... In the case of biotech, we have been through cycles before. In each case, the strong get stronger, the weak retool or fail. There is little doubt that we have too many marginal biotech firms in the U.S., so this painful process only makes us better over time. The biggest argument against bailouts is simply that we cannot afford them. The long term implications for massive new debt, especially from expanded government programs, will have a significant drag effect on our economy for years. - Ed Robinson
  
  
• First I would have to know what strings are attached to getting this money. One cannot compare bailing out a bank to bailing out a biopharmaceutical company that is already in the clinic showing good results. Would this be straight funding for developing a therapeutic, without numerous strings attached to receiving the funds? Needless to say, this funding shouldn't be used for perks or bonuses. - Arlene Arky
  
  
• The question needs two parts to be properly answered. To the question, is biotech more deserving than other industries, the answer should be yes. Since the beginning of biotech, the industry has set the standards for innovation and world leadership. However, this presumes government bailouts are acceptable at all. Companies must be allowed to succeed or fail without government penalty or support. Individuals and companies must be held responsible for their own decisions, which should include taking the risks of business cycles into account when planning their personal finances. - Mark Staples
  
  
• "Things have to play out in nature's own course. In this industry, it's all about the survival of the fittest and smartest." - Elinor Gulve

Thank you all for your votes and emails. - Maureen