Biotech industry hit hard by slumping economy, reports say

NEW YORK Things aren’t looking good for the biotech industry.

The Wall Street Journal reports that several small biotechs are expected to file for bankruptcy, cancel drug trials, lay off workers or be acquired by larger companies. 

The Journal reported that this could harm larger drug companies, which depend on small biologic drug makers to invent drugs the larger companies can acquire and market. 

Lately, several larger companies have had to trim down their research and development operations. Wyeth announced that it would reduce its R&D therapeutic areas; GlaxoSmithKline recently said it would lay off 850 workers, while Merck is laying off more than 7,000.