Investor activism is on the rise in biotech

Adam Feuerstein is a senior writer and biotech columnist, reporting on the crossroads of drug development, business, Wall Street, and biotechnology. He is also a co-host of the weekly biotech podcast The Readout Loud and author of the newsletter Adam’s Biotech Scorecard. You can reach Adam on Signal at stataf.54.

This story first appeared in Adam’s Biotech Scorecard, a subscriber-only newsletter. STAT+ subscribers can sign up here to get it delivered to their inbox.

It’s reality check time in biotech.

A recovery from this prolonged and painful market downturn will require a major attitude adjustment from biotech management teams. For some especially troubled companies, that means voluntarily shutting down. Everyone else needs to prune back R&D ambitions and become more mindful spenders of cash.