It takes an average of $1.2bn over 10-12 years to develop a medically useful molecule. This huge expense of time and money means that almost all biotechnology start-ups require top-ups of funding or other outside sources of revenue in order to survive. In normal times, companies with promising technologies are able to attract the funds needed to soldier on through clinical trials while those whose products fail to clear various scientific and regulatory hurdles are left by the wayside. But now, the financial crisis has left even healthy companies wondering where the cash is going to come from next.

Traditionally, struggling businesses have sought shelter in the arms of big drug companies or stronger rivals willing to buy their intellectual property and hire their scientific talent. Others can elect to go into “hibernation” if their technologies fail to bear fruit, shutting down research while holding on to their intellectual property in the hope it may one day prove useful.