{"id":28600,"date":"2020-03-27T08:25:30","date_gmt":"2020-03-27T15:25:30","guid":{"rendered":"https:\/\/hughesmarino.com\/san-diego\/?p=28600"},"modified":"2026-04-30T10:08:28","modified_gmt":"2026-04-30T17:08:28","slug":"life-science-to-the-rescue","status":"publish","type":"post","link":"https:\/\/hughesmarino.com\/san-diego\/blog\/2020\/03\/27\/life-science-to-the-rescue\/","title":{"rendered":"Life Science to the Rescue"},"content":{"rendered":"<h3><em>The Unique Perspective of the Life Science Company During this COVID-19 Crisis<\/em><\/h3>\n<p><strong>By John Jarvis<\/strong><\/p>\n<p>As the leading national advocate for commercial tenants, our team at Hughes Marino is working seven days a week right now to help our clients navigate these unprecedented times. Your company\u2019s revenue forecast is suddenly suspect while your expenses are stubbornly fixed. And your real estate cost is one of the big numbers on that damn expense statement.<\/p>\n<p>Interestingly, one group of our customers seems a little less rattled by the current crisis\u2014our biotech clients. They are concerned, to be sure, but these aren\u2019t the clients that are coming to us asking us to help them find immediate rent relief. I have some theories as to why this is, and a recommendation.<\/p>\n<p><strong>Theory #1 \u2013 Life Science companies are still open for business<\/strong><\/p>\n<p>Most of our biotechnology clients are still open for business. Counties throughout California have issued Health Orders dictating the mandatory shut down of all but \u201cEssential Businesses.\u201d And pharmaceutical and biotechnology companies are deemed\u00a0Essential Businesses in most of these counties.<\/p>\n<p>These folks are still going to work and conducting, for the most part, business as usual.<\/p>\n<p><strong>Theory #2 \u2013 Life Science companies are always tight on cash<\/strong><\/p>\n<p>It takes a certain person to run a life science company. Brilliant for starters, in science <u>and<\/u> medicine <u>and<\/u> business, a rare trifecta. It also requires a certain bravado, or undaunted courage, as most biotechs survive on one or two years\u2019 worth of cash at any one time, aka their \u201cBurn Rate.\u201d These folks are always on the brink of running out of money. And they (mostly) seem to find the money they need for their next round with follow-on investments, provided they are executing on their business plan and hitting their milestones.<\/p>\n<p><strong>Theory #3 \u2013 Life Science is the answer to the problem we all face right now<\/strong><\/p>\n<p>We are in the midst of a global pandemic. A previously unknown pathogen is spreading rapidly through our global population. What we need right now are diagnostic tests, treatments, vaccines and cures. This is the business of biotech, and we should all be grateful for the brilliant minds currently working the problem. We will get through this, and we will owe a debt of gratitude to the scientific community and biotech companies in particular. Life science isn\u2019t suffering, it is in the spotlight.<\/p>\n<p><strong>A Suggestion<\/strong><\/p>\n<p>And here is the thing. I don\u2019t think the biotechnology companies are immune to the financial crisis we are in. I am concerned that those follow-on investments may be harder to secure, and perhaps at lower valuations as the venture capital firms, whose investment portfolios have seen a massive decline almost overnight, take a hard look at where their money is going and perhaps get a bit stingy with their remaining cash on hand (just like the rest of us).<\/p>\n<p>My suggestion\u2014talk to us about your real estate spending. The life science sector is going to see declines in real estate pricing just like the rest of the market. It may feel like business as usual, but it is not. Hughes Marino was built for this. Talk to us.<\/p>\n<p>Working together, let\u2019s extend your burn rate and buy you some time. We need you to keep the lights on in the lab, and we need you to continue working the problem until answers are found.<\/p>\n<p>Our message to the life science community\u2014keep up the good fight. We appreciate you. And we need you now more than ever.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As the leading national advocate for commercial tenants, our team at Hughes Marino is working seven days a week right now to help our clients navigate these unprecedented times. Your company\u2019s revenue forecast is suddenly suspect while your expenses are stubbornly fixed. And your real estate cost is one of the big numbers on that damn expense statement. Interestingly, one group of our customers seems a little less rattled by the current crisis\u2013our biotech clients. They are concerned, to be sure, but these aren\u2019t the clients that are coming to us asking us to help them find immediate rent relief. I have some theories as to why this is, and a recommendation.<\/p>\n","protected":false},"author":14,"featured_media":28601,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":true,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[1056],"tags":[],"publication":[],"video_type":[],"coauthors":[995],"class_list":["post-28600","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-hm-blog"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Life Science to the Rescue<\/title>\n<meta name=\"description\" content=\"John Jarvis gives a message to the life science companies about how important their work is during this time as we navigate the COVID-19 crisis.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" 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