BIO and KoreaBIO sign MOU during state visit

BIO and KoreaBIO signed an MOU as part of the Korean President’s state visit. Plus, Washington’s talking about PBMs and BIO’s David Thomas takes a deep dive on the biotech market. (638 words, 3 minutes, 11 seconds)

BIO, KoreaBIO sign MOU during state visit

As part of the South Korean President’s state visit, BIO and KoreaBIO signed a bilateral MOU on Tuesday during an event led by the Korean Trade Minister—here’s what to know.

The MOU: BIO and KoreaBIO agreed to work together to “drive innovation to the world” and take action to advance President Biden’s recent executive order on biotechnology and biomanufacturing.

Specifically: BIO and KoreaBIO will collaborate, share ideas on policy and supply chain issues, and “proactively engage in connection with each party’s member companies” and annual conventions.

The context: BIO’s international advocacy team has long been calling for biotech regulatory harmonization with countries including Korea, which hosted a meeting of the International Council on Harmonization (ICH) of pharmaceutical products, which BIO attended. BIO held separate meetings with the Korean Ministry of Trade, Industry, and Energy—the host of the MOU signing. BIO looks forward to further collaboration.

What they’re saying: “It was great meeting with KoreaBIO President and Samsung Bioepis CEO Christopher Hansung Ko to discuss collaboration on advancing bio-manufacturing in the U.S. and Korea,” said BIO CEO Rachel King.

“This MOU represents the growth of our relationship with Korea BIO and recognizes the increasing sophistication of the Korea biotech sector," said BIO's VP of International Affairs, Nancy Travis. "BIO looks forward to expanding our cooperation to strengthen biomanufacturing on both sides of the Pacific.”—check out the photos of the event.

As biotech market seeks rebound, economic and political environments are key

The last two years have been tough, with valuations dropping and deals becoming rarer. But a rebound may come soon, David Thomas, BIO’s Senior VP for Industry Research, explains in a Bio.News exclusive. 

How bad is it? From March 2021 to March 2023, public valuations for R&D-stage biotechs fell 73%, from a median of $431 million to $115 million globally. Investment fell from $44 billion in 2021 to $29 billion in 2022.

Why it matters: “As valuations fall, new financing tends to get difficult,” says Thomas.

What went wrong: “A post-COVID hangover affected the sector, as did speculation about—and eventual passage of—the Inflation Reduction Act,” he explains. (And we can’t forget the impact of trouble among financial institutions catering to the industry.)

How long will it last? Follow-on share offerings bounce back faster, while biotech IPOs, venture investment, and licensing activity lag. Early positive trends include strong upfront payments for clinical stage out-licensing and growth in pre-clinical out-licensing.

Learn more about the biotech market and what BIO’s doing at Bio.News. 

Want to know more? Join BIO’s webinar on Thursday, April 27, Weathering The Storm: How to Navigate a Slowing Investor Market.

More News: 

EPA: EPA releases report showing health impacts of climate change on children in the United States
Climate change is expected to “increase annual cases of asthma between 4% and 11%,” pollen-related ER visits, and cases of Lyme disease, as well as “4% to 7% reductions in annual academic achievement per child” due to heat affecting concentration and learning. 

The New York Times: Can Africa get close to vaccine independence?
“Countries will need stronger regulatory agencies so their vaccines can be quickly approved for export. They will also need better supply chains of everything that goes into vaccines.”

President Biden’s Wednesday: Spending the day with South Korean President Yoon Suk-yeol. 

What’s Happening on Capitol Hill: The growing appetite for pharmacy benefit manager (PBM) reform will be on display in two hearings today. The House Energy and Commerce Subcommittee on Health hearing, “Legislative Solutions to Increase Transparency and Competition in Health Care,” will cover Rep. Buddy Carter's (R-GA)  Drug Price Transparency in Medicaid Act of 2023 and the PBM Accountability Act. The House Education and the Workforce Subcommittee on Health, Employment, Labor and Pensions hearing, Reducing Health Care Costs, is also expected to address PBMs. 

Also, the House Financial Services Committee plans to mark up 15 bills, including several designed to encourage investment. The House Agriculture Subcommittee on General Farm Commodities, Risk Management, and Credit will hold a hearing, Producer Perspectives on the 2023 Farm Bill. The Senate Budget Committee will look at health costs of climate change, while the  House Appropriations Labor, Health and Human Services, Education Subcommittee will look at health care workforce shortages.