Rizwan Chaudhrey’s Post

Pharmaceutical research is a high risk - high reward endeavor. Adjusting the potential reward to be gained inevitably reduces the willingness to take high risks during the long and expensive R&D phase. So it should not come as a surprise if companies shift to safer and less innovative R&D strategies, for example by not pursuing secondary indications for a drug. Unfortunately, this is not in the best interests of patients. “R&D is going to be tied to not just good science, but the commercial realities associated with a product” #innovation #biotech #research #pharma #biotech

https://buff.ly/3JHKXHx The Inflation Reduction Act (IRA) is causing a stir in the pharmaceutical industry. With Medicare price negotiations now on the table, drug companies and venture capitalists are rethinking their R&D strategies. The focus may shift towards biologics, which offer longer patent protection than small-molecule drugs. However, the IRA could create uncertainty around investment in rare disease treatments. A critical question remains: will the IRA ultimately hinder the pace of medical innovation? #pharma #biotech #innovation #healthcarepolicy

The #lifesciences domain is experiencing rapid advancements driven by mergers, acquisitions, and technological innovations. Strategic alliances and partnerships are fueling growth, while product launches and FDA approvals are expanding treatment options. With cutting-edge research and a focus on personalized medicine, the sector is poised to meet the evolving needs of global healthcare. #AMR #LifeSciences #HealthcareInnovation #Biotechnology #MergersAndAcquisitions #FDAApproval #Pharmaceuticals #MedicalAdvancements #PersonalizedMedicine #DrugDevelopment #HealthcarePartnerships #ClinicalTrials #HealthcareResearch #BiotechStartups #MedicalTechnology #HealthcareTrends https://lnkd.in/dM-Va69g

The pharmaceutical industry now spends 10 times more on research and development than it did in the 1980s. The results are clear: The number of new drugs hitting the market to help patients has grown 60% over the last decade. I was thinking about this research when watching last week’s much-anticipated Senate hearing between a committee led by Bernie Sanders and the CEOs of three major drugmakers: Johnson & Johnson, Merck and Bristol Myers Squibb. The hearing itself sadly was mostly political theater: Those who were there to condemn pharma CEOs focused on that, those who were there to defend them did that, and nothing was accomplished. Might sound familiar. But the stated topic of high drug prices in the U.S. deserves a lot of attention. Those who blame pharma companies point to the fact that they issue billions of dollars a year in dividends and stock buybacks. It's also true that most major U.S. companies also do this - to the tune of $1.5 trillion annually. None of the top 15 companies for stock buybacks last year were in the health care sector. Looking at the combined yield of buybacks and dividends last year, health care companies came in at 3.9%, below the big company average of 4.6%. Over the past decade, the stocks of the three drugmakers featured at the hearing have returned just 60% of the stock gains featured in the S&P 500. But that’s just three companies. Altogether, the XPH fund of pharma stocks has actually lost money on an inflation-adjusted basis over the last decade. Keeping a stock price high is important for attracting investments, and in the case of pharma companies, their cash flow is pivotal to patients and doctors relying on new treatments. The pharma companies have spent enough on research and development - $30 billion last year from J&J alone - to bring as many as 60 new drugs to the market per year. Americans pay for some of this research through their tax dollars and in turn generally get access to these treatments before other countries, and are prioritized when drugs are in limited supply, as in the early months of the covid vaccine. The sad reality is that it is expensive to produce these drugs. Some estimates put the average cost to bring a new pharmaceutical to market at $1 billion, which is worth it for drugmakers if it pans out, but not if they spend years developing a pill that never comes to fruition. At some point their patents run out and companies are able to produce generics that are cheaper, which benefits patients. Of course this is all just one aspect of the story of drug prices - another major component are pharmacy benefit managers, so-called PBMs, but that’s another (long) post for another day.

Great short read on M&A activity for 2024 in the Pharmaceutical, Life Sciences sector from PwC.

In a significant win for Bristol Myers Squibb, the firm secured FDA approval for its novel schizophrenia drug, Cobenfy. The success is particularly meaningful for several reasons - the foremost being that the drug is the first of its kind and indicates a shift in the strategy used for treating a debilitating illness that hasn't seen a different pharmacological approach for decades. Secondly, BMS' decision to acquire the clinical-stage biopharma company Karuna Therapeutics for a staggering $14 billion has paid off. However, it is not the only company with a promising product pipeline. The year 2023 had seen a flurry of Life Science M&As, with Pfizer, Merck, and AbbVie leading the charge in acquiring innovative biopharma companies. Spurred by the looming patent cliff, companies are rushing to bolster their product pipeline with novel drug candidates. For instance, AbbVie’s recent acquisition of Cerevel Therapeutics may result in the approval of another schizophrenia drug belonging to the same class as Cobenfy. As companies work to enhance their offerings, we can anticipate the launch of several promising drug candidates in the near future. #lifescience #biotech #drugdevelopment #fdaapproval

More on the #InflationReductionAct lawsuits, with perspective on how #Medicare drug price negotiation is affecting #biopharma R&D investment. https://lnkd.in/gMxjxurk

What is the BIOSECURE Act?  The BIOSECURE Act is meant to ensure improved competitiveness within the biopharmaceutical industry while also protecting national security. Companies like AstraZeneca, Amgen, Pfizer, and Eli Lilly, which are based in the U.S., U.K., and Europe, would be prohibited from conducting business with major drug development and contract manufacturing partners, such as WuXi, AppTec, BGI Group, MGI, and Complete Genetics (entities specifically named in the legislation) as well as other potential biotechnology companies of concern (e.g., companies with ties to the governments of China, Russia, North Korea, or Iran).   If enacted, companies would be forced to choose between receiving funding from the U.S. government or not having contracts with those named partner companies. Ultimately, it’s believed that companies will choose to discontinue their relationships. According to a Biocentury survey, 90% of drug manufacturers surveyed said their number one concern is a lack of biopharma research and manufacturing capacity. If the bill becomes law, this change will impact their research pipeline and cause a slow-down in clinical trials, drug approval, and drug availability.  While the Act is focused on the biopharmaceutical industry, all supply chain leaders, CEOs, and board of directors should be vigilant in accessing its organization’s risk and resiliency strategy. Today, it’s important for supply chains, especially in strategic technologies, to evaluate how the undergoing geopolitical changes will impact their ability to be reliable and resilient. This will require a change in business strategy, especially for those who have been primarily cost focused.   

Honored to have our work on the potential implications of the #InflationReductionAct discussed in PharmaVoice by Alexandra Pecci titled "Will the IRA squash new drugs? Those worries are likely exaggerated, studies say.". "Even with global pharma revenue reductions of up to 10%, the industry could maintain the current level of drug approvals, and large companies can strategically allocate their R&D spending in a way that would sustain both current levels of product approvals and profits, the analysis found." The research "Modeling impact of inflation reduction act price negotiations on new drug pipeline considering differential contributions of large and small biopharmaceutical companies." was published in the journal Clinical Trials https://lnkd.in/eJVBeMyV with accompanying research published by the Institute for New Economic Thinking https://lnkd.in/eNPRnJwk Center for Integration of Science and Industry at Bentley University Bentley University Bentley University Center for Health and Business

Stories making headlines today in the biopharma industry: Despite potential impacts from the proposed Biosecure Act aimed to restrict dealings with select Chinese biotech firms, Roche remains positive about anticipated growth in China's pharmaceutical and diagnostics sectors, drawing confidence from its diversified supply chain. In other industry news, Freenome has revealed plans to lay off over 100 staff members. Despite securing $254 million in funding earlier this year, the cancer testing company believes this move will streamline its focus on key strategic priorities. Meanwhile, German drug production company Evotec undergoes a significant business 'reset'. The shift towards profitable growth follows less-than-projected profits. Former Mediq CEO, Christian Wojczewski, is expected to take the reins as the new Evotec CEO come July. Thermo Fisher also finds itself on the advantageous side due to potential enforcement of the Biosecure Act. Reassuring customers, CEO Marc Casper highlighted that given Thermo Fisher’s extensive network in the U.S and Europe, reliable supply chains can be assured. The $2 billion investment by Samsung Biologics into Plant 4 continues to yield significant returns. The contract drug manufacturer enjoyed a 31% rise in Q1 earnings YOY, largely attributable to Plant 4 and its flourishing biosimilar business. Vermont Senator Bernie Sanders raises alarm over Novo Nordisk’s “outrageously high” pricing for its weight loss and diabetes drugs, Wegovy and Ozempic. Sanders contends these prohibitive costs squeeze many Americans and exert enormous pressure on US healthcare services. Lastly, Biogen reveals eight key insights from its Q1 updates, including a challenging Leqembi launch, a $103M voucher, and an accentuated focus on clinching new licensing deals. #pharma #biotech #topstories #biodatastudio