Biotechnology companies traditionally received most of their financing for research and development and marketing from venture capitalists and private equity sources. The remainder usually was raised through public offerings, private investments in public entities, strategic alliances and governmental grants.
Unfortunately, the availability of capital for development-stage biotech companies has been diminished by the time, cost and risk of product development; by unexpected delays and failures in clinical or field trials; by uncertainties in regulatory approval; by the consolidation of big pharmaceutical companies; and by the phenomenal growth of Internet companies. Biotech companies, however, still can use their intellectual property portfolios to leverage financing opportunities.
