Interesting Numbers.

Here are some interesting numbers that I was alerted to today.


Back in 2008 there were 93 biotech companies listed on the ASX that were required to report their cashflow quarterly. 


As of 2010 that number has reduced to 68.


It would be nice to be able to report that the reason for the reduction has been a large number of these companies being released from quarterly cashflow reporting (by stint of reporting positive cashflows for 5 consecutive quarters). Sadly, that is not the case. Most of this reduction in numbers is the result of these companies being delisted or moving to another field of endeavour.


In fact, only a very elite handful (3?) of these companies have reached that measure of success. As we know, Cellestis is one of this group.


It is interesting to further note that of the 68 companies remaining, nearly half have less than 12 months cash burn on hand and will likely require further cash injections to survive.


As I have said before, investing in startup biotechs is a high risk business. I am personally very happy that I decided to invest in Cellestis.