Gabor Garai Discusses Impact of Venture Capital Difficulties on Life Science Companies

Foley & Lardner LLP Partner Gabor Garai is quoted in the Pharmaceutical Technology article, “Money moves: How the biotech market is weathering inflationary storms,” discussing how the economic cool down could impact life science companies.

“VC funds face challenges in not making returns on their portfolios, which means they will have to hold onto them longer,” Garai said. “This will also make fundraising challenging and adversely impact peoples’ enthusiasm about life science companies, creating a vicious cycle.”

While there is the option of these companies going the SPAC route, Garai noted that eventually underperforming SPACS will be forgotten by investors. IPOs will not be an easy fundraising route either, as Garai explained that it will take time for the market to right itself.