This week, we highlight Minnesota’s designation as a medtech hub, new developments in medtech in the UK and increased licensing deals in the biopharma sector. Additionally, we spotlight a positive outlook for next year in the life sciences services sector. Lastly, we continue to look at the importance of diversity in clinical trials.
Each week we highlight five things affecting the life sciences industry. Here’s the latest.
Minnesota’s medtech hub: A new era of innovation and federal funding
Minnesota has been recognized as a tech hub by the U.S. Department of Commerce, making it eligible to vie for substantial federal funding, according to the Star Tribune. President Joe Biden recently unveiled 31 such hubs, emphasizing the U.S.’s commitment to global innovation leadership. The initiative, MedTech 3.0, led by Greater MSP, seeks to unite Minnesota’s hospitals, research entities and medical device manufacturers. The goal is to merge artificial intelligence, data science and device manufacturing, positioning Minnesota as a global epicenter for advanced medical technology. Medtronic, the world’s leading medical device company, is among the key players in this endeavor.
The imperative for a UK medtech industrial strategy
According to Med-Tech Innovation, recent reports by England’s Centre for Process Innovation emphasize the need for the UK to implement a medtech industrial strategy to remain competitive in the health technology sector. The reports caution that without governmental intervention, the UK risks missing out on valuable job opportunities and billions in revenue. In 2021, the UK’s health tech sector boasted over 4,353 businesses, generating a turnover of £30 billion and employing more than 145,600 people. But challenges persist, with many companies contemplating relocation overseas for more competitive pricing and flexible manufacturing processes. The overarching sentiment is that while the UK excels in research and development, and innovation, scaling up remains a significant hurdle.
Surge in ADC licensing deals in biopharmaceuticals
The biopharmaceutical sector experienced a significant 400% growth in the total deal value of antibody-drug conjugate (ADC) licensing from 2017 to 2022, peaking at $16.6 billion in 2022, per BioPharmaReporter. ADCs, which combine the accuracy of monoclonal antibodies with the strength of cytotoxic drugs to target cancer cells, have seen an uptick in marketed drugs and promising candidates in late-stage clinical trials. GlobalData reported 150 ADC licensing agreements from 2018 to 2023, with oncology being the dominant therapy area. Noteworthy deals include Seagen’s collaborations with major pharma companies and Pfizer’s acquisition of Seagen for $43 billion in March last year.
CRO/CDMO sector optimistic after 2023 re-alignment
According to Contract Pharma, the contract research organization (CRO)/contract development and manufacturing organization (CDMO) sector underwent a significant re-alignment last year, influenced by factors like the aftermath of the pandemic, geopolitical tensions and shifts in demand. Despite these challenges, the underlying demand drivers for the sector remain robust, driven by strong pipelines of both small and large molecules. While the sector experienced a softening in demand, especially from emerging pharma and in the early phases of development, this trend is expected to continue for 12 to 18 months. But the industry is optimistic about next year, with signs of an improving venture capital funding environment and expectations of a pickup in deal activity by the end of the year. The article underscores the resilience of the sector and its ability to recalibrate in the face of challenges, with a positive outlook for the near future.
Study shows varying subtypes of cancer among trial participants of different races
A recent study published in JAMA Network Open suggests that increasing diversity in clinical trials may not eliminate health disparities entirely. The study found that even among clinical trial participants, disparities persisted for certain groups of breast cancer patients, including young Black and Hispanic patients and older Hispanic women with specific breast cancer subtypes, highlighting that factors beyond access to trials contribute to outcomes. Despite these challenges, increasing diversity in clinical trials remains important for accelerating therapeutic innovation and optimizing treatment regimens.
For more insights in life sciences, check out RSM’s industry outlook.
