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Day 1 of the BIO CEO and Investor Conference brought optimism about the industry and the market outlook—and a look at a new program that will ignite innovation. We tell you how to follow Day 2 and more below. (640 words, 2 minutes, 12 seconds) |
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How to follow the BIO CEO & Investor Conference |
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What we’re watching today: The day began with a look at BIO’s new report on the pain and addiction pipeline, followed by the policy outlook. We’ll also learn more about the role of CRISPR in the next generation of gene therapies and bring you more exclusive interviews on Bio.News and social media. |
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Is biotech still a good investment? |
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CEOs and investors said yes on Day 1 of the 2023 BIO CEO and Investor Conference, providing a dose of optimism in a challenging market. “When we look at companies, we’re considering the fund-ability—not just now, but in a year from now,” said Janice Bourque, Managing Director of Life Sciences at Hercules Capital. “What are the milestones they will hit, what will it take, and will they be out of cash? Who are the investors behind those companies? Where are the VCs in their funds—tapped out?”
Are SPACs dead? “Reverse mergers are here to stay, at least in this market,” said Dennis Purcell, Founder of Aisling Capital LLC. “SPACS [special purpose acquisition companies] are dead.”
“If there’s one thing COVID has done, it’s to raise the visibility of the challenges the industry faces in being able to get a drug on the market…rapidly and safely,” said Bourque.
But: The public still doesn’t understand the impact of pharmacy benefit managers (PBMs) and hospitals, for example, on prices. “We’ve done a lousy job of explaining this to the public,” echoed Purcell, adding that this will become more important as new highly priced treatments come out.
There’s been much pessimism in the industry lately—but there shouldn’t be: “As an industry, since we last met, it’s unbelievable what we’ve done,” including innovations in Alzheimer’s, psychedelics changing the face of mental health, and developing vaccines in a few months versus the standard of a few years, said Purcell.
The bottom line: In life sciences, “we find a way,” said Jennifer Sheng, Managing Director of Citi. Biotech can creatively raise capital—if we go “back to fundamentals, back to basics, companies will be truly valued where they are in the clinic.” Read more on Bio.News.
Watch Hercules Capital’s Janice Bourque explain why biotech is still a good investment: |
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How Pfizer will 'ignite' innovation
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Pfizer Ignite is a new program offering R&D services for small and start-up biotech companies, explained Kathy Fernando, SVP and Global Head of the Partner of Choice Organization at Pfizer Inc., speaking at the first fireside chat at the 2023 BIO CEO and Investor Conference—Bio.News has the details and why it matters.
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What they’re doing: “Pfizer Ignite focused solely on what we believe to be the most promising innovation out there within Pfizer’s R&D focus areas,” Fernando noted. “The benefit to the biotech companies is that they’re using an R&D engine that has a proven track record.”
Why Pfizer? “Pfizer is now entering success rates in the clinic at 21%, which is about twice per median. We have very competitive cycle times and speed. So for a biotech company that has very promising innovation, they could essentially enhance the odds of success for patient impact by partnering with the Pfizer Ignite community, as well as realize that success sooner.”
Why does Pfizer charge a fee? For companies to participate, Pfizer “may co-invest equity” or set a “reasonable fee,” which enables Pfizer “to partner at a reasonable scale,” explained Fernando.
The impact: After the first year, the first partnerships have all “come back for a second round of follow-on services—and even a third in some cases. So, there’s a good indication that the model is delivering value to biotech companies, and they’re coming back.”
Why it matters: “The pandemic has really crystallized for the industry the criticality of collaborations to unlock innovation for patients,” said Fernando.
Read more on Bio.News.
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| As President and CEO of Global Blood Therapeutics (GBT), Dr. Ted Love led the company as it developed the first FDA-approved drug targeting the underlying cause of sickle cell disease rather than just its symptoms. The company was recently acquired by Pfizer.
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President Biden’s Tuesday: The State of the Union address, which can be watched live here at 9 p.m. ET, is expected to touch on a proposal to cap all insulin prices and to tout the drug price controls contained in the Inflation Reduction Act, as well as other health policy, according to POLITICO.
What’s Happening on Capitol Hill: The State of the Union address will take place in the House chamber tonight. Earlier in the day, the House is set to vote on H.R. 185, which would terminate the CDC’s requirement that foreign travelers prove they’ve been vaccinated against COVID-19. |
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