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Cancer Drug Developers Trade Below Liquid Assets With No Respite In Sight

  • Nearly 200 biotech companies have more cash than market cap
  • Weak merger outlook, development risk weighs on industry
Updated on

The biotech-stock selloff has run so far that many companies are now worth less than the amount of cash they have in the bank.

Nearly 200 such North America-based companies have negative enterprise values, meaning that their liquid assets are worth more than their market values, according to data compiled by Bloomberg. Small- to mid-cap companies researching new cancer treatments like Harpoon Therapeutics Inc. or TCR2 Therapeutics Inc. are among those that have fallen the most: according to Truist analyst Asthika Goonewardene, 53% are trading for values at or below their cash levels.