BowTiedBiotech
BowTiedBiotech Podcast
Cash Runway Crisis and Reverse Mergers: The Growing Landscape of Financial Zombie Biotechs
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Cash Runway Crisis and Reverse Mergers: The Growing Landscape of Financial Zombie Biotechs

The Week of 10/30/2024

Hello Avatar! Welcome to the BowtiedBiotech podcast, where science meets business! If you're fascinated by breakthrough biotech, bold innovations, and the business behind the science, you're in the right place. Each week, we dive into the world of biotech with fresh insights, sharp analysis, and the stories that are shaping the future of health. Whether you’re an industry insider, an investor, or just biotech-curious, we’ve got something for you.

We are now publishing 4-5x per week according to the following cadence:

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  • Wednesdays: CRISPR Corner: Monthly gene editing news

  • Thursdays: Insiders Track: Public & Private Biotech Markets

  • Fridays: Sweat Equity: Your Weekly Biotech Fix

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In the high-stakes world of biotech, cash runway and clinical trial data timing can make or break a company. With an increasing number of biotechs facing financial cliffs shortly after key data readouts, a new class of “financial zombie” companies is emerging—entities that are neither fully alive nor fully dead, surviving with limited cash and assets that remain stuck in development purgatory. This growing phenomenon is reshaping the reverse merger landscape, raising questions about which type of shell company is more valuable: one with cash but no assets, or one with a promising asset but no cash.

📣🎙️ TODAY’S POCAST:

[ 0:00 ] Intro

[ 0:55 ] Managing Cash burn

[ 2:22 ] Financial zombie

[ 4:25 ] Intro to reverse mergers

[ 5:30 ] Cash vs asset shells

[ 7:30 ] Cabaletta case study

[ 9:27 ] Reverse merger trends

[ 11:39 ] Conclusion

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CONCLUSION

We hope you are enjoying our first leap into the podcast world! Instead of waiting until everything is perfect, we’re diving in and will continue improving as we go. Feel free to send us your suggestions, feedback, or constructive criticism—we’d love to hear from you!

As a reminder, if looking to go deeper into the topics we cover check out our website BowTiedBiotech.com, or DM us on twitter, or email us: bowtiedbiotech@gmail.com

ABOUT BOWTIEDBIOTECH

As a reminder, the purpose of the BowTiedBiotech substack is two-fold. Primarily, we aim to provide our scientist audience the tools to build a biotech company and ultimately translate their ideas into medicines for patients.  Secondarily, biotech investors may find this substack useful as we will be providing weekly market updates of the public AND private markets as well as heavily leveraging current financing events as teaching examples.

DISCLAIMER

None of this is to be deemed legal or financial advice of any kind. All updates are sourced from publicly available disclosures. Insights are *opinions* written by an anonymous cartoon/scientist/investor.  

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BowTiedBiotech Podcast
1-2x Biotech Focused Podcast: Public & Private Market Updates, Company Building, Financing, Exit Strategies, and Emerging Science Trends