Biopharmaceutical investors and executives alike conceded during the recent BIO International Convention that the booming financial environment, which peaked in 2020 and 2021 with record levels of venture capital investment and initial public offerings, created too many new drug development start-ups and public companies. Many therapeutics firms shut down as investment in the sector slowed in 2022 and early 2023 – a trend that is likely to continue – but others have adjusted to market realities.
Biopharma Investors, Companies Learning To Adjust To Financial Market Realities
When Cycle Will Spin Out Of Downturn Is Anyone’s Guess
Raising money will be difficult for the foreseeable future, so every part of the ecosystem from start-ups to public companies to VC firms is figuring out how to survive until cash is easily accessible again.
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Kyoto-based venture moves HQ to California to expand R&D and business outreach for its regulatory T-cell technology, as it raises around $46m in public and private funding.
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The Belgian firm banks nearly €77.7m to push its Charcot-Marie-Tooth to proof-of-concept.
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A new report from a domestic institute on South Korea’s biopharma M&A trends shows a pickup in activity, but that this remains relatively weak and small-scale. It calls for broader domestic government support to build expertise, drive innovation and globalization.
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Public Company Edition: Cargo suspended development and cut 90% of its workforce to focus on strategic alternatives, while Pyxis and Kiromic laid off or furloughed employees. Also, Pfizer sold its remaining Haleon shares for $3.3bn, Galderma sold $1bn in bonds and other financings.
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Kyoto-based venture moves HQ to California to expand R&D and business outreach for its regulatory T-cell technology, as it raises around $46m in public and private funding.
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Merck & Co., which already has an oral PCSK9 inhibitor in Phase III, licensed Hengrui’s Lipoprotein(a)-lowering small molecule HRS-5346 outside of Greater China for $200m up front.
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A decision from the FDA is due by 28 September.