There is no doubt that the economic recession which has now touched all parts of the world is taking it’s toll on most industries.
One of the most resilient however is the healthcare industry. Sibaya LifeScience! recently interviewed several companies supplying services to “big pharma” in the form of contract manufacturing – especially drug delivery – at ICSE, P-Mec, Cphi – Frankfurt, Germany. While this was not a scientific study, anecdotally we were told that it was business as usual, in fact for some, business was clearly on the increase as manufacturing was being outsourced to contract manufacturers.
Not the case though for small and medium sized biotech companies according to this report in the IHT which lists companies in the Biotech hub in Massachusetts struggling for cash and laying off employees. Biotech companies need cash to fund research while waiting for their revenues to hopefully arrive one day, but in the US biotech companies have only been able to raise about half of what they did in the prior year.Technorati Tags: biotech, contract manufacturing
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It is interesting to see the economic impact on biotech companies. Though resilient, some are still doing well, while others simply aren’t.