Shrinking U.S. Biotech Lost a Quarter of Companies Since 2007

One hundred publicly traded biotechnology companies in the U.S. have been acquired or ceased operations since the end of 2007, a 25 percent drop in the number of active companies, a report said.

Companies have struggled to raise funds from public offerings and acquisitions haven’t filled the void, said John Craighead, managing director for investor relations and business development of the Biotechnology Industry Organization, a Washington-based trade group. While acquisitions of biotech companies grew to 55 in 2008 from 40 in 2007, the number fell to 38 last year and to 21 so far this year, Craighead said.