Last year National Venture Capital Association President Mark Heesen predicted that the coming financial crisis would make or break many small developers. The strong would survive, and the weak would not have what it took to raise cash during the credit crunch. Below is that unfortunate bunch; 16 notable companies that didn't have the money, expertise or programs to live to see another day.
What sunk these companies? In some cases, poor clinical data hit at the worst possible time, causing investors to bail. In other instances, developers with no other source of income faded away when they were simply unable to raise more funding.
Though this report seems like it's all about doom and gloom, there is a silver lining here. Bankruptcies and liquidations were coming fast and furious in early 2009. Hardly a week would go by without news of yet another biotech collapse. But that's changed in the last few months as the market has stabilized and fewer companies have been forced to close.
Below is a list of companies that have folded since October 2008; let's hope next year's list isn't quite as long.
- Alizyme - Cambridge, UK
- Akesis - San Diego, CA
- Altus Pharmaceuticals - Cambridge, MA
- Argolyn Biosciences - Durham, NC
- AtheroGenics - Alpharetta, GA
- Biopure - Cambridge, MA
- Diobex - San Francisco
- Dynogen - Waltham, MA
- Epix Pharmaceuticals - Lexington, MA
- La Jolla Pharmacueticals - La Jolla, CA
- MicroIslet - San Diego, CA
- Nanogen - San Diego, CA
- Neurobiological Technologies - Emeryville, CA
- Northfield Labs - Evanston, IL
- Orchestra Therapeutics - San Diego, CA
- TorreyPines - TorreyPines, CA