As small biotechs struggle to obtain critical funding, more developers are turning to nonprofit groups for financial support. Groups such as the Muscular Dystrophy Association and National Multiple Sclerosis Society have long supported academic and early-stage work. But with funds scarce, companies of all sizes with later-stage programs are appealing to nonprofits for help. Of the U.S.'s 370 public biotech firms, a third have just six months of cash on hand and only 10 percent are profitable.
"We are starting to see a lot more movement from companies that are further along and needing cash," Timothy Coetzee, executive director of the National Multiple Sclerosis Society VC arm, told the Wall Street Journal. "We are starting to see more interest from companies that are publicly traded."
- here's the WSJ report