Each week we highlight five things affecting the life sciences industry. Here’s the latest.
Biden administration makes significant investment in oncology treatments
- The Biden administration is providing $150 million to fund new technologies in the oncology space that enhance the safety and precision of tumor surgeries, focusing on real-time cancer cell visualization and avoiding critical healthy structures, according to Fierce Biotech.
- The funds will be distributed among eight recipients, including universities and a startup, to develop advanced surgical tools and techniques, supporting the broader goal of halving the national cancer death rate by 2047.
Large pharmaceutical companies focusing on smaller M&A transactions
- The Wall Street Journal reports that big pharmaceutical companies are shifting from large acquisitions to smaller deals valued at $5 billion or less, driven by regulatory ease, fewer large targets and the need to supplement their pipelines.
- Smaller acquisitions, often involving private companies with early-stage drugs, are seen as less risky for regulatory approval and easier to integrate, though they carry uncertainties regarding drug development success.
FDA rejects MDMA-assisted therapy for PTSD
- The U.S. Food and Drug Administration rejected an application for MDMA-assisted therapy for post-traumatic stress disorder citing insufficient data and requesting an additional Phase III trial to further assess safety and efficacy, echoing concerns raised by the FDA’s advisory committee, per BioSpace.
- The applicant plans to meet with the FDA to seek reconsideration emphasizing the unmet medical need for PTSD treatments, while experts highlight issues like selection bias, functional unblinding and the challenge of distinguishing the effects of MDMA from the accompanying psychotherapy.
Biotech seeing decreased upfront licensing payments
- According to BioPharma Dive, the biotechnology sector has seen a shift in drug licensing deal terms with upfront payments to biotechs decreasing significantly while more of the total deal value is tied to uncertain, performance-based payouts, reflecting a more risk-averse environment in the industry.
- Startups, especially those with less proven drug assets, are facing tougher negotiations and are under pressure to deliver results as pharmaceutical companies become more selective and cautious with their investments.
AI company partners with Sloan Kettering on oncology collaboration
- Fierce Biotech reports that Absci, an artificial intelligence drug creation company, has partnered with Memorial Sloan Kettering Cancer Center to co-develop up to six potential antibody therapies for cancer leveraging Absci’s AI-powered drug creation platform alongside MSK’s research expertise.
- The collaboration is part of Absci’s broader strategy, which includes multiple research and development partnerships with major pharmaceutical companies, and an internal pipeline focused on cytokine biology for various diseases.
For more insights in life sciences, check out RSM’s industry outlook.
