#09 - Sky-high mergers and market dips

The one minute biotech roundup, by SomX.

Hold on tight, folks 🦤

This week’s biotech news is full of ups, downs, and hairpin turns. From a major AI biotech merger, to the first CRISPR gene-editing therapy hitting the NHS…the next few months look to be a rollercoaster ride.

And just when you think you’ve caught your breath, the global stock market crash threatens to derail biotech IPOs.

Buckle up, it’s going to be a bumpy one!

Dodo

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Discover 🔍

🤝 Recursion to acquire Exscientia to bolster pipeline in one of AI bio’s biggest M&A deals (Endpoints) – In one of AI biotech’s biggest moves yet, Recursion and Exscientia are merging in a $688M all-stock deal (pending shareholder approval) with Recursion taking a 74% stake in the new entity. By merging pipelines, the companies expect to save a combined $100 million annually and are planning to deliver 10 clinical readouts in the next 18 months – with some drugs having ‘blockbuster potential’.

Our take: Talk about exciting! Recursion and Exscientia’s prospective merger combines their complementary AI-driven platforms and expertise – Recursion on the biology side, and Exscientia bringing the chemistry –  to forge a formidable drug discovery platform. Despite Exscientia’s recent hurdles, this deal looks to mark the beginning of a very fruitful relationship! 

🧬 First gene-editing therapy may cure blood disorder (BBC News) – The NHS is set to offer Casgevy®, the first approved CRISPR gene-editing therapy, in a groundbreaking move for patients with beta thalassaemia. Developed by Vertex Pharmaceuticals, this one-time therapy could eliminate the need for lifelong blood transfusions by disabling the BCL11A gene and reactivating the patient's foetal haemoglobin production. NICE has green-lit the therapy, meaning 460 eligible patients can now receive the life-changing drug.

Our take: Casgevy® isn’t just a breakthrough; it’s hope for communities hardest hit by beta thalassaemia – particularly those of Mediterranean, South Asian, Southeast Asian, and Middle Eastern descent. With a hefty £1.6 million price tag per treatment, the NHS has thankfully snagged a discount, and in the long-term, it could save more than it costs by reducing the need for lifelong transfusions.

🏆 Introducing Fierce Biotech's 2024 Fierce 15 (Fierce Biotech) – This Dodo loves a list! And what could be more up our street than the annual Fierce 15 roundup, which honours some of the most innovative biotech companies of 2024. Selected from hundreds of nominees, standouts include Abdera Therapeutics, Fauna Bio and iECURE, each of whom are poised to push the boundaries of innovation in areas like oncology, regenerative medicine and gene editing.

Our take: The Fierce 15 can catapult winners into the big leagues, offering visibility and validation that can unlock coveted investments and partnerships. More than just an accolade, this list provides a sneak peek into the future of biotech, showcasing the companies set to spearhead the industry's next seismic shifts. Dodo can’t wait to see what this year’s nominees conjure up...

🧪 Regeneron eliminates endonuclease in AAV processing (GenEng News) – In more gene therapy news, Regeneron is upgrading its AAV (adeno-associated vector) commercial manufacturing with the introduction of single-use chromatographic clarification. The new process eliminates the need for costly endonuclease (an enzyme that breaks down DNA), improves filtration and prevents clogs – enhancing efficiency and streamlining operations.

Our take: Ditching endonuclease trims up to $100,000 off each 500-litre batch, without sacrificing yield: a game-changer for making gene therapies more wallet-friendly. Plus, by enhancing purity, and simplifying production, it makes scaling up therapies a breeze. As demand for gene therapies grows, manufacturing advancements like these can set a new industry standard to help increase patient access.

And finally…

📉 Global stock market crash likely to delay biotech IPOs (Pharmaceutical Technology) – Uh oh! Things had been looking good for biotech, with a surge in IPOs in Q1 2024 after years of dormancy. But with the global stock market crash, a sustained rebound is at risk. Experts warn that lower valuations and the US Federal Reserve delaying interest rate cuts may dampen investor interest, leading biotech companies to delay IPOs until the market stabilises.

Our take: The market crash threatens biotech’s IPO resurgence, with lower valuations and delayed offerings forcing companies to reconsider their funding strategies. As cautious investors shift their focus, early-stage biotechs may struggle – potentially stalling innovation and slowing the delivery of new treatments. Alas, it looks like biotech’s on a wild ride with little smooth coasting in sight!

Tune in 🎧

🌱 Grow Everything
Erum Azeez Khan and Karl Schmieder are joined by Ginger Dozier, founder of Biomason, to explore how microbes could change the world.

🧑‍🔬 Smart Biotech Scientist
David Bruehlmann chats to Mauro Torres, a postdoc researcher at the University of Manchester, in a two-part feature about the complex world of protein manufacturing.

🧫 The Business of Biotech
Matt Pillar speaks with Kristin Yarema, Ph.D, CEO of Poseida Therapeutics, about her vision for advancing allogeneic CAR-T therapies.

Apply ✍️

💊 Director/Senior Director, Amphista Therapeutics – Ready to lead the charge in targeted protein degradation (TPD)? With a strong background in drug metabolism and pharmacokinetics, you'll steer projects from lead optimisation to candidate selection, collaborating with top-tier scientists to develop groundbreaking therapies in areas of high unmet need.

📋 Development Project Manager, Apollo Therapeutics – Ready to drive innovation? With experience in progressing projects from investigational new drug filing, through to Phase 2 clinical studies, you’ll partner with project directors to steer multiple programs in a fast-growing biopharma environment. 

🛠️ Automation Support Specialist, Perkin Elmer – Got a knack for troubleshooting? With 3+ years of lab instrument support and liquid handling automation experience, you’ll optimise workflows, train scientists, and tackle equipment breakdowns head-on, ensuring seamless lab operations in the world of functional genomics.

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