How the biotech downturn is already affecting drug startups

The stock market rout that has engulfed the biotech industry is beginning to work its way down to privately held startups and the venture investors who back them.

Already, the pace of biotech initial public offerings, which accelerated in recent years, has slowed significantly. That's left emerging drugmakers with a less certain path to new funding, and tough decisions to make while the downturn continues. Many are preparing to save cash while staying private for longer.