ESTHER NEUMAN MUNICH GERMANYAfter the exuberance during the Covid-boost and the post-Covid hangover, 2024 was a rather calm year for the biotechnology sector. This provides an opportunity to take a step back and assess some emerging long-term financing trends as well as the recent events in the US, which may also impact the biotech industry.
Sphene CapitalDuring the conference calls on the latest quarterly reports, several recurring questions emerged: What consequences do you anticipate if Trump is to be re-elected? How will tariffs affect supply chains and operating profits? What about FDA, IRA, the healthcare system, or the bioeconomy strategy?
Curie.bioTherapeutic antibodies today represent a cornerstone of the treatment of various diseases including cancer, infectious, autoimmune, cardiovascular, haematological, metabolic, neurologic and ocular diseases, and make up a major proportion of blockbuster drugs with global sales of more than US$230bn in 2023.
2023 was another particularly tumultuous year for life sciences and, although the lingering effects of the last year are unlikely to change dramatically, the stabilisation of interest rates (off 16-year highs) and emerging direction of travel (market data points) tilt our bias to positive for the new year.
The 2023 State of the Union speech saw biotechnology rise as a priority for the European Union. It has been designated as a critical technology for Europe’s economic security. In March 2024, the European Commission presented its biotechnology and biomanufacturing strategy with a clear leadership ambition for Europe’s biotech industries. The Letta Report on the future of the Single Market, published April 2024, proposed a fifth freedom on research and innovation which would directly benefit biotech.
Born with the aim of harmonising the application, evaluation, and supervision process of clinical trials conducted in EU countries, there is much room for improvement for the Clinical Trial Information System CTIS, particularly with regard to SMEs and translational researchers.
Despite the recent stock market rally and declining volatility, IPOs are rather rare in many industrialised countries –not least for seasonal reasons. The main reason for this, however, is the aggressive monetary policy of the central banks, with more than ten interest rate hikes in both Europe and the US.
As cultivated meat moves closer to commercialisation, we are seeing a worrying trend of misinformation entering the public debate. This food can play a vital role in ensuring Europe’s food system is fit for the future – helping satisfy the growing demand for meat while boosting food security – but political opposition has mounted, with the Italian government taking the controversial step of banning cultivated meat.
The Enlarged Board of Appeal (EBoA) of the European Patent Office will decide upon a question of high relevance for patents in the field biotechnology. The question to be decided concerns the interpretation of what has been “made available to the public”.
Continuing geopolitical uncertainty has perpetuated volatility in global markets, exacerbated by higher inflation and interest rates. The impact has left the biotech market in a limbo as investors eschew riskier investments, but there are signs of a potential recovery ahead.