|
|
|
Day 2 of the BIO Investor Forum in San Francisco brought the policy outlook and the market outlook (and much more) – here's what we learned. (395 words, 1 minute, 58 seconds)
|
|
|
|
|
IRA is harming investment, says BIF 2024 panel |
|
|
The Inflation Reduction Act (IRA) small molecule “pill penalty” is having a palpable impact on investment in biotech, according to experts speaking at the BIO Investor Forum.
The challenge: Small molecule drugs get only nine years of protection from IRA drug price controls, while biologics get 13 years—even though we need both types of drugs.
“The IRA really disrupted how we think, especially about cancer,” said Steven Potts, CEO of SLAM BioTherapeutics. “I was out fundraising for a small molecule, and I noticed a real difference in interest.”
What can be done? We need to pass the EPIC Act, which would give small molecule drugs the same 13-year protection as biologics.
Another IRA challenge: Panelists also criticized the IRA’s penalty on rare disease drugs that address more than one indication.
“It doesn’t truly make sense as to why we’re including a drug in negotiations that probably has two or three rare disease indications,” said BGR Group VP Raghav Aggarwal. “A policy rationale just doesn’t exist.” Read more on Bio.News. |
|
|
|
Bio.News interviewed Crystal Kuntz, Senior Vice President, Health Policy & Research at BIO |
|
|
The when, what, and why of IPOs |
|
|
Before launching an IPO, biotech firms should consider timing, interest in their product, the macro environment—and the headaches of going public, according to yesterday’s BIO Investor Forum panel.
IPOs can finance the ultimate goal: bringing a new drug to market, said panelists in the session entitled, “Market Outlook: Is the IPO Window Opening Wider and What to Watch?” on Day 2.
The macro-environment: Following a couple of bad years for investment in small biotechs, panelists are “cautiously optimistic” about investor interest and the possibility of a successful IPO.
When should you go public? Having clinical data to prove the value of your product is essential to getting good value for your IPO. “If you don’t have data that’s coming in the next 6-12 months, it’s really a punishing market,” said Elaine Cheung, Chief Business Officer at Moonwalk Biosciences.
What’s popular? Drugs targeting obesity, oncology, autoimmune conditions, and neurology. But “chasing the same stuff as everyone else is very challenging,” warned Colin Walsh, Managing Director, Growth Equity at Goldman Sachs.
IPO vs. M&A: While both activities provide funds, M&A is the payoff investors hope for when they participate in an IPO, said Carolyn Ng, Partner and Managing Director at TPG Life Sciences Innovations. Walsh agreed: “It’s M&A. Every public investor is playing for M&A.”
Read more on Bio.News. |
|
|
|
|
Today, October 17, is the last day to submit your session proposal for the 2025 BIO International Convention. We're looking for cutting-edge ideas in one of our key focus areas, or you can propose a unique concept of your own. This is your chance to showcase your knowledge, expand your network, educate the industry, and elevate your profile within the biotech community. |
|
|
|
|
Beltway Report: What's Ahead in Washington
|
|
|
Congress remains in recess until after the election. |
|
|
|
|
