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Pharma Companies Bring in Big Investments
Research companies are getting large investments, but are they hiring?
Thursday, August 19, 2010 at 12:00:00 AM
It appears pharma companies in Philadelphia are bringing in big investments...
Last week, TetraLogic Pharmaceuticals Corp., of Malvern, said it raised $32 million in its latest financing, which was led by Clarus Ventures L.L.C., of Cambridge, Mass.
Other investors included Amgen Ventures , of San Diego; Hatteras Venture Partners, of Durham, N.C.; HealthCare Ventures L.L.C., of Princeton; Latterell Venture Partners , of San Francisco; Novitas Capital, of Wayne; Quaker BioVentures , of West Philadelphia; and the Vertical Group, of Summit, N.J.
Also this month, Gemin X Pharmaceuticals Inc. raised $8 million from its existing institutional investors, led by Caxton Advantage Life Sciences Fund L.P., of New York, and Sanderling Venture Partners , of San Mateo, Calif. That round of investment comes less than four months after Gemin X attracted $16 million.
But are they hiring?
Is this part of a larger trend that companies are still unwilling to hire as a whole; instead choosing to hold onto cash and do more with less. Many analysts say this trend won't change until at least mid-2011.
The latest Survey of Professional Forecasters by the Federal Reserve Bank of Philadelphia had economists offering a weaker view of the U.S. economy than they did three months ago. No surprise there.
But the 36 forecasters offered up some dreadful predictions on the trends in payrolls. (Whatever the opposite of rose-colored glasses is, that's what they were wearing.)
They revised downward the growth in jobs over the next four quarters with nonfarm payroll employment rising at a rate of 8,000 jobs per month during the summer and 114,100 per month during the fall. But when they calculated an annual average level for 2010, the result is job losses running at a monthly rate of 45,200.
Next year would bring job gains of 143,800 per month on average, they say. Though that sounds better, it's still below the 200,000 level that economists say is the minimum needed to begin to reduce the unemployment rate, which was 9.5 percent in July.
See the entire article at Philly.com