Much has been discussed in the last few weeks about how the current financial crisis gripping Wall Street will trickle down and affect other industries. Clearly, the average American by now fully understands the danger of cheap debt—this is no different for large corporations that accessed the credit markets unnecessarily, loading up on something that was ubiquitous and seemingly affordable. Of course, as we are now observing every day in the marketplace, the devil always collects.
For the pharmaceutical industry, hope springs eternal: due to strong balance sheets and cash positions, Big Pharma has, by and large, emerged relatively unscathed. Pharmaceutical companies are predicted to actually ride out the current crisis, with the biotech industry destined to be the lucky winner. Over time, patients are expected to benefit, as they will have access to newer, innovative therapies. There will be some losers, however, as would be expected.