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Many pharmaceutical companies have been cutting their R&D budgets, and now, many biotechs are following suit, says Pharmalot's Ed Silverman. Even as biotech revenues are rising, companies are keeping hold of their cash and spending less on innovative research. "Overall, biotechs spent $54 million on R&D in 2010, which is down 7 percent from the previous year. This followed a 9 percent decline in spending in 2009," Silverman says.

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