Although untold numbers of real estate and mortgage companies in Orange County have fallen victim to bankruptcies lately, Orange County’s biotechnology companies have not suffered to the same extent. Biotech companies elsewhere have not been as lucky, though, as seen by recent and unprecedented bankruptcy filings, as well as in the cut in funds allocated to the development of new drugs to treat diseases such as multiple sclerosis, Alzheimerʼs and Parkinsonʼs.
Last month, at least five notable U.S. biotechnology companies filed bankruptcy, something unusual for the industry. Biotechnology bankruptcies have been relatively rare, as struggling companies have opted for other solutions, such as new investors, mergers, or new licensing or development deals.
Tactics used by some biotechnology companies to avoid bankruptcy include downsizing, moving to smaller offices, shelving early research projects and delaying research on new drugs, all in order to avoid looking for a bankruptcy attorney.
No one would suggest that the top companies are at risk, but Orange County is home to some of the best and fastest growing companies in the U.S. So far, leading Orange County compnies such as Advanced Medical Optics headquartered in Santa Ana, Beckman Coulter headquartered in Fullerton and Edwards Lifesciences headquartered in Irvine appear to be unaffected by the recent economic turmoil. However, BioLASE, Inc., of Irvine announced a planned reduction of 20% of its workforce earlier this week.
Investors are expected to come back once the economy gets stable, so the biotechs continue working on projects like a prostate cancer therapy, a polio vaccine and new diabetes treatments.
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