March 13 (Reuters) - The collapse of Silicon Valley Bank (SIVB.O) will leave early-stage biotechnology companies with a funding void, investors and analysts said on Monday, but larger, publicly-traded drug companies should escape unscathed.
About 50% of U.S. biotech companies, developing drugs for everything from cancer to heart disease and rare conditions, banked with Silicon Valley Bank (SVB), including a large number of private firms, according to WBB financial analyst and managing partner Steve Brozak.
Analysts said the direct impact to U.S. biotech companies overall was limited, although several drugmakers such as Axsome Therapeutics Inc (AXSM.O) and Rhythm Pharmaceuticals Inc (RYTM.O) disclosed cash deposits with the bank.
Startup-focused lender SVB Financial Group last week became the largest bank to fail since the 2008 financial crisis, sending shockwaves through the global financial system and prompting regulators to step in to contain the fallout.
SVB’s demise likely leaves smaller biotech clients without an alternative lender, said Brozak, since other banks will now probably raise their funding thresholds to points that make investment difficult for smaller entities.