Biotech Bankruptcies Hit New Record in 2019
Biotech investors might have had an exciting year in 2019 with an impressive amount of new drug approvals, there have been 14 notable bankruptcies last year as well, the highest seen since 2011. Although it's less common to see a company declare bankruptcy in the biotech sector than in other industries, there have been a number of reasons why 2019 saw such a high bankruptcy rate.
Legal issues surrounding opioid lawsuits have been a major contributor to this high bankruptcy figure. Purdue Pharmawent out of business earlier in 2019 due to its involvement in manufacturing opioids. The company faces up to $12 billion in fines to settle its lawsuits.
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Source Fool.com
