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The Big Biotech Bailout

The bankers and the automotive industry executives in Washington to ask for funds are being joined by biotech executives who are asking for a temporary tax law change. According to the New York Times, this change would allow floundering companies to get government funds for research and development if they pledged not to take tax credits if they later become profitable. The Times also notes that of the 370 publicly-traded American biotechs, 125 have less than six month's cash on hand.

At In the Pipeline, Derek Lowe points to a Financial Times article that says Goldman Sachs is in talks to fund a pharmaceutical company and create a new business model in the process. "This could be very interesting, because I think that we need to be open to some new research models in the industry. The current one isn't exactly spewing results these days," Lowe writes.

 

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