Rédaction Africa Links 24 with Meghana Keshavan
Published on 2024-03-01 13:56:25
The U.S. government is increasing scrutiny on Chinese biotech companies, which could have implications for the industry domestically. A recent executive order from the Biden administration directs federal health officials to be cautious about providing contracts and grants to companies, including U.S. firms, that may expose sensitive health data to foreign adversaries. Additionally, legislation is being considered on Capitol Hill that would prevent the U.S. government from engaging with companies that collaborate with Chinese biotechnology firms of concern. This heightened scrutiny is largely focused on WuXi, a Chinese company that plays a key role in the discovery, testing, and production of medications for biopharma companies like Pfizer, AstraZeneca, and GSK.
In the world of biotech finance, a new trend involving hedge funds and insider information is gaining traction. This week on “The Readout LOUD,” STAT’s biotech podcast delves into this topic along with a surge in biotech stock performance and the latest developments in obesity research.
FogPharma, a biotech company based in Cambridge, Massachusetts, has recently secured $145 million in a Series E funding round. The company is working on helicon therapy, which involves the development of corkscrew-shaped peptides called helicons to block the beta-catenin signaling pathway present in many solid tumors. FogPharma’s CEO, Mathai Mammen, a former R&D executive at Johnson & Johnson, shared plans to combine helicon therapy with immune-oncology drugs from other companies.
Considering its recent struggles with investor dissatisfaction, Pfizer is shifting its focus towards antibody drugs as a strategic move to navigate the Inflation Reduction Act. With its stock declining by 44% last year due to a plateau in Covid-related revenue and the impending expiration of key patents, Pfizer aims to reduce its reliance on small molecule drugs in its cancer portfolio. This shift toward biologics is anticipated to drive growth in both revenue and profit for the company.
Ironwood Pharmaceuticals faced a setback despite positive results from a Phase 3 trial of its short bowel syndrome drug. The company’s shares plummeted by 30% as investors were not convinced that the medication could outperform competitors like Takeda’s Gattex and Zealand Pharma’s glepaglutide. Ironwood had acquired VectaBio last year for $1 billion with the expectation that apraglutide would be a superior product, but fell short in certain secondary endpoints. Nevertheless, the company plans to proceed with the approval process for apraglutide.
In other news, pharmaceutical companies are contesting against breaking up price-fixing lawsuits filed by U.S. states, Novo Nordisk is expanding its research and development capabilities with a new campus in Boston, and concerns have been raised about a potential link between RSV vaccines and an increased risk of developing Guillain-Barré syndrome.
Overall, the biotech industry is experiencing a period of significant regulatory and market dynamics that are shaping the future landscape of healthcare innovation and investment.
