Wednesday Recap: Biotech Restructuring Day!
by H.S. Ayoub, DMD
BioHealth Investor
Nasdaq Biotechnology Index (^NBI) -2.92%
Amex Pharmaceutical Index (^DRG) -2.69%
iShares Dow Jones Medical Devices (IHI) -1.25%
Kosan Biosciences (KOSN) up 24.34%... investors were cheering the company's appointment of a new CEO, and its announcement that it will cut 37% of its workforce and refocus its clinical efforts to only a couple of late stage developments, as the new CEO puts it; "This represents an important step in Kosan's evolution to a product-oriented company". So I guess before this step the company was not interested in developing products but just to spend money on research! Joking aside, in these trying times in our economy smaller companies, especially little biotechs, need to do what Kosan just did in order to survive the next couple of years.
Alkermes (ALKS) down 0.28%... after Eli Lilly (LLY) pulled the plug on the AIR® Insulin joint program back on March 7th, Alkermes stock took a big dive, and forced its current decision to cut 18% of its workforce. I love the CEO's comment in the press release, "The flexibility of our business model allows us to adapt our cost structure while maintaining our ability to develop innovative products of our own." What does he mean exactly by Flexibility, firing employees?
Wednesday's Top Medical & Biotech Stocks
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BioHealth Investor
Nasdaq Biotechnology Index (^NBI) -2.92%
Amex Pharmaceutical Index (^DRG) -2.69%
iShares Dow Jones Medical Devices (IHI) -1.25%
Kosan Biosciences (KOSN) up 24.34%... investors were cheering the company's appointment of a new CEO, and its announcement that it will cut 37% of its workforce and refocus its clinical efforts to only a couple of late stage developments, as the new CEO puts it; "This represents an important step in Kosan's evolution to a product-oriented company". So I guess before this step the company was not interested in developing products but just to spend money on research! Joking aside, in these trying times in our economy smaller companies, especially little biotechs, need to do what Kosan just did in order to survive the next couple of years.
Alkermes (ALKS) down 0.28%... after Eli Lilly (LLY) pulled the plug on the AIR® Insulin joint program back on March 7th, Alkermes stock took a big dive, and forced its current decision to cut 18% of its workforce. I love the CEO's comment in the press release, "The flexibility of our business model allows us to adapt our cost structure while maintaining our ability to develop innovative products of our own." What does he mean exactly by Flexibility, firing employees?
Wednesday's Top Medical & Biotech Stocks
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posted by Nico at
5:18 PM
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