Each week we highlight five things affecting the life sciences industry. Here’s the latest.
Biopharma sector reports strong earnings
- According to Fierce Pharma, the biopharma industry experienced strong revenue growth in the fourth quarter of 2024, with 21 out of 22 major companies reporting year-over-year increases. Several companies, especially those focused on diabetes, obesity, oncology and immunology treatments saw double-digit growth, while only one company reported a revenue decline.
- Large pharmaceutical companies continued to benefit from demand for obesity and diabetes drugs. However, some projected slower growth this year, due in part to concerns over possible regulatory changes and potential shifts in the vaccine market.
Providers hesitant to use GLP-1 drugs for conditions with more proven, cost-effective standards of care
- Drugmakers are heavily investing in improving weight loss drugs; however, their focus on expanding GLP-1 use beyond obesity and diabetes does not necessarily align with physician interest as cheaper alternatives exist for other conditions, BioSpace reports.
- High prices and supply issues are driving patients toward alternative markets, while the industry explores new formulations, like oral GLP-1s, to improve accessibility and adherence. There is growing interest in treatments that preserve muscle mass during weight loss, but concerns remain about long-term efficacy, affordability and insurance coverage.
Advocacy group calls for reverse of FDA lab-developed test decision
- During 2024, the U.S. Food and Drug Administration made a decision to classify lab-developed tests as medical devices, requiring stricter reviews. Critics of the decision, including the College of American Pathologists, argue this will increase costs and limit innovation.
- The group is pushing for repeal through lawsuits, legislative efforts, and this week requested that the Department of Health and Human Services terminate the new regulation, per MedTech Dive.
Biotech investors express concern regarding the potential impact of NIH research cuts on biotech
- BioPharma Dive reports that the potential National Institutes of Health funding cuts, including a proposed 15% cap on indirect costs, could slow scientific research, hinder biotech startup formation and reduce opportunities for young researchers.
- While it is too early to determine the impact on the industry, given the extent to which academic discovery plays a role in drug development, it is possible that this will have an impact on the ways early-stage biotech companies conduct preclinical research and seek capital.
FDA approves new device to treat Parkinson’s disease
- This week the FDA approved a new device that treats Parkinson’s disease symptoms using personalized therapy based on real-time brain activity.
- The treatment, already used in over 40,000 patients, is expected to be the most significant commercial launch of a brain-computer interface system, according to MedTech Dive.
For more insights in life sciences, check out RSM’s industry outlook.
