Over One-Third of Biotechs Face Cash Crunch, EY 2025 Report Finds

EY's 35th annual Biotech Beyond Borders Report reveals that more than one-third of biotech companies have less than one year of cash remaining, highlighting a critical funding challenge for the sector35.

Only 40% of US-listed biotech firms had enough cash to last through 2025, according to the report, signaling that a majority are at risk of running out of funds before the year ends3.

The biotech and biopharma industry is navigating a period of significant macroeconomic uncertainty, hindered by high interest rates, inflation, changes in regulatory policy, and global trade disruptions5.

EY analysts suggest that companies must focus on operational fundamentals and strategic preparedness to weather this challenging funding environment5.

The constrained access to capital is part of a broader industry inflection point, with smaller, smarter deals replacing large-scale M&A activity as companies recalibrate their strategies15.

Sources:

1. https://www.ey.com/content/dam/ey-unified-site/ey-com/en-gl/campaigns/firepower-report/documents/ey-gl-life-sciences-firepower-report-01-2025.pdf

3. https://xtalks.com/fastest-growing-pharma-biotech-companies-in-2025-according-to-the-financial-times-4213/

5. https://www.thepharmaletter.com/biotechnology/key-findings-ofeys-annual-botech-beyond-borders-report-2025