Silicon Valley Bank and biotech dairy alternatives

We start the week with what you need to know about Silicon Valley Bank and BIO’s response. Plus, The Washington Post looks at how precision fermentation is shaking up the dairy industry. (572 words, 2 minutes, 51 seconds)

SVB failure's impact on innovation

Following the collapse of Silicon Valley Bank, the U.S. government took action to protect depositors, which include many biotech companies—here’s what you need to know and BIO’s response. 

Catch up quick: After the collapse of Silicon Valley Bank (SVB) Friday, the U.S. Treasury, Federal Reserve, and Federal Deposit Insurance Corporation (FDIC) stepped in to fully protect all depositors and ensure they have access to all of their money starting today, March 13.  

Where to read more: Bloomberg has a comprehensive live blog of recent events, while STAT News has a deep dive into the impact on the biotech industry.

Why it matters to biotech: “Nearly half of all U.S. venture-backed technology and life science companies bank with SVB—the 16th largest bank in the country—with a total of $342 billion in client funds and $74 billion in total loans,” explains Fierce Biotech.

BIO’s take: "The ecosystem that allows America to develop groundbreaking new medicines is extremely important to our nation and to patients who depend on biotechnology companies," said Rachel King, BIO's CEO, in a written statement. "The recent actions by the FDIC, the Federal Reserve, and Treasury to allow SVB depositors to have access to all of their money is a very positive development to mitigate the potential harm to companies that are innovating across healthcare, agriculture, and the bioeconomy. We will continue to monitor the situation and will work closely with regulators to ensure that companies can meet payroll and continue to fund cutting-edge science and the development of treatments and therapies that patients are relying on."

The next steps: Federal regulators closed the crypto-focused Signature Bank to avoid a similar risk and will “make available additional funding to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors.”

More Health News: 

Acadia Pharmaceuticals: FDA approves DAYBUE™ (trofinetide) for the treatment of Rett syndrome in adult and pediatric patients two years of age and older
“As the first FDA-approved drug for the treatment of Rett syndrome, DAYBUE now offers the potential to make meaningful differences in the lives of patients and their families who have lacked options to treat the diverse and debilitating array of symptoms caused by Rett syndrome,” said Acadia CEO Steve Davis.

ICYMI:Saturday was the third anniversary of the day COVID-19 was declared a pandemic—read our exclusive story about what we did right and whether we’re ready for the next one.

Better dairy alternatives – with biotech

Despite the widespread availability of plant-based milk, alternatives for cheese and other kinds of dairy products have underwhelmed consumers, reports The Washington Post—until precision fermentation. 

Why it matters: “Consumers concerned about climate change or animal welfare have been anticipating the U.S. launch of cultivated meat, which is grown in labs from animal cells, but cultivated dairy could have just as much of an impact on the environment — with fewer regulatory hurdles to clear,” explains The Washington Post.

Enter precision fermentation. The process is similar to brewing beer but utilizes microbes engineered to produce the desired proteins or enzymes—in the case of dairy, milk proteins without the cow.

What they’re saying: “Rather than using 22nd-century technology to produce meat, we’re using 20th-century technology to produce milk protein,” said Ryan Pandya, CEO of Perfect Day, which makes cream cheese made with precision fermentation.

How it works: Perfect Day gives their microbes “the precise DNA sequence that serves as a blueprint for how to make cow whey protein, the thing that makes milk taste, whip, and swirl like milk,” they explain. “[Y]ou could say we ‘copy’ the genetic information about whey protein and ‘paste’ it into the microflora’s genome.”

What’s next for microbes: Beyond better animal-free dairy, biotechnology is using microbes for many applications—from making bioidentical molecules for haircare products to cleaning up plastic pollution.

President Biden’s Monday: Heading to San Diego, where he’ll meet with Australian Prime Minister Anthony Albanese and U.K. Prime Minister Rishi Sunak, with joint remarks scheduled for 5 PM ET. After, he’ll participate in a DNC reception.

What’s Happening on Capitol Hill: Nothing scheduled in the House or Senate today; expect the SVB collapse to continue to dominate the chatter today.