Five strategies to protect your business and navigate the economic
MONTREAL, Feb. 4 /CNW Telbec/ - Despite difficulties sparked by the
current financial crisis, biotech companies can survive through creativity,
focus and discipline, says Ernst & Young, which has five suggestions to help
biotechs stay the course in turbulent economic times.
"Over the past 20 years, we've seen many companies that have managed to
adjust their strategies and develop flexibility to weather storms and emerge
stronger," explained Rod Budd, Ernst & Young's Canadian biotech industry
(1) Review product pipeline: Focus only on those products or projects
with near-term revenue potential and with a high probability of
success. Delay, suspend or attempt to monetize on all other products
(2) Seek capital from non-traditional sources: Consider sales of royalty
streams, project-based financing, reverse mergers, government
programs, disease foundations and sales of non-core assets including
(3) Review strategic alliances with other companies: Evaluate possible
merger partners for strategic fit. Other types of agreements, such as
resource-sharing arrangements, could reduce costs.
(4) Manage cash burn and cut non-essential costs: Immediate measures can
include reviewing supplier relationships and expense policies as well
as layoffs, work sharing arrangements and temporary pay cuts for
(5) Protect intellectual property: As a last resort, consider bankruptcy
protection to safeguard intellectual property and give the company
the time to reorganize.
Ernst & Young's professionals are available to comment on the impact of
the current economic situation in the biotech industry and discuss the above
opinions in greater detail.
About Ernst & Young
Ernst & Young is a global leader in assurance, tax, transaction and
advisory services. Worldwide, our 135,000 people are united by our shared
values and an unwavering commitment to quality. We make a difference by
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For further information:
For further information: Julie Fournier, (514) 874-4308,