A record num­ber of small biotechs are now trad­ing be­low cash. Is this the bot­tom yet?

For any­one who’s been fol­low­ing biotech news of late, it should be no sur­prise that many small- to mid-cap play­ers are strug­gling. But the scope and depth of their trou­bles may be hard­er to grasp.

Jef­feries an­a­lysts took a stab at quan­ti­fy­ing the mar­ket down­turn and came up with a num­ber: 128 com­pa­nies are now trad­ing at a mar­ket cap small­er than the cash they have on hand, a “his­tor­i­cal” num­ber ow­ing to neg­a­tive clin­i­cal events, neg­a­tive FDA de­vel­op­ments and macro eco­nom­ic en­vi­ron­ments.

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