Each week we highlight five things affecting the life sciences industry. Here’s the latest.
New Alzheimer’s drug shows promise in early trials
- In patients with Alzheimer’s disease, astrocytes can either help break down harmful amyloid beta plaques or worsen the condition by secreting amyloid beta and toxic byproducts, contributing to disease progression.
- A new drug candidate, reduced astrocyte activity and improved cognitive function in an animal study, with doses of 20 mg and 40 mg decreasing astrocyte coverage in key brain areas like the hippocampus and cortex, according to Fierce Biotech.
Pharmaceutical companies begin to report data on oral obesity treatments
- To date, major marketed obesity drugs require an injection and many major players in the industry are racing to be the first to develop an oral alternative.
- BioSpace reports that three large pharmaceutical companies have reported that early-stage data on oral weight loss drugs shows promising efficacy; however, there are significant tolerability issues due to rapid dose increases and questions regarding manufacturing challenges.
Recent transactions may indicate an opening in the biotech IPO market
- Three biotech companies raised over $700 million combined in initial public offerings, marking a significant uptick in public offerings after a slow summer, per BioPharma Dive.
- While the biotech IPO market remains challenging, with more buyouts than public offerings recently, many later-stage companies are holding off on going public because of macroeconomic uncertainties, with analysts predicting a potential increase in IPOs in early 2025.
FDA grants clearance to a new hearing aid feature in AirPods
- Fierce Biotech reports that the U.S. Food and Drug Administration has granted de novo clearance for hearing aid features in Apple’s premium AirPods, marking the first approval for over-the-counter hearing aid software in a consumer audio product.
- This decision expands the accessibility of hearing treatment for adults with mild to moderate hearing loss and addressing a significant public health issue affecting millions of Americans.
How will the Fed interest rate cut affect the biotech market?
- Wednesday’s Federal Reserve decision to lower interest rates for the first time in over four years is expected to boost investment in biotech, a sector seen as riskier during periods of high interest rates. But other macroeconomic factors, like the upcoming U.S. presidential election, may still temper the impact, according to BioPharma Dive.
- While the rate cut is seen as positive for biotech capital markets, industry insiders caution that other challenges, including decreased dealmaking and the inherently risky nature of biotech investments, could limit immediate gains.
For more insights in life sciences, check out RSM’s industry outlook.
