Strategic Planning In Biotech During A Pandemic Crisis

R&D-stage biotech firms, represented by the vast majority of private and small/mid-cap (SMid) public companies, are loss-making enterprises. They don’t have product revenues in most cases, so this pandemic won’t be affecting their sales. Consumers and their health plans don’t buy R&D-stage drugs, so changes in consumer behavior aren’t relevant in the near-term. Loss-making biotechs largely don’t have much debt financing, so tightening access to credit is not a major factor in our space.