Generous matching grants now offered by the German government are catching the eye of many established US biotechs. Some are spinning out German start-ups they hope will prosper there and eventually boost their own fortunes. But finding experienced German managers is difficult, and exit options are uncertain.

Biotech's current depression has begun to take a very human toll. While the specific stories behind each of the CEO exits in the accompanying table are all different, most would not have occurred had the stock market been a friendlier environment.

If large diagnostics companies are consolidating at a record pace these days, smaller companies are also struggling for ways to cope with the brutalities of the current market. Some are cutting back on projects or looking to eliminate altogether their involvement in diagnostics. Others are forging relations with other small companies, something they haven't done much of in the past.

After several years of intense consolidation, many medical products companies--the healthier ones, at least--seem to be taking a breather. Drug mergers are way down, while medical devices has become a buyer's market. And biotech consolidation isn't likely anytime soon. Only in slow-growing diagnostics is consolidation the rage.