#41 - Billion Dollar Deals and the Rise of Chinese Biotechs
The coffee break biotech roundup, by SomX.
Hello dear readers
It's been another wild week in the world of biotech. We’ve seen more billion-dollar gene therapy deals, new treatments for cancer and MS, and warnings that Chinese biotechs are set to overtake the US, dominating the news cycle. All this, plus Trump's latest tariff threat causing economic unease in the sector, means we’re certainly living through interesting times!
Feeling bewildered? We certainly are!
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🤑 Eli Lilly helps struggling Sangamo with $1.4B gene therapy deal (Fierce Pharma): Eli Lilly has licensed exclusive rights to Sangamo’s STAC-BBB capsid tech for CNS-targeted gene therapies, handing over $18M upfront with up to $1.4B in milestones on the table. This technology is designed to penetrate the blood-brain barrier, delivering gene therapies for central nervous system (CNS) diseases. It’s the third STAC-BBB deal since March 2024, joining Astellas and Genentech in betting on Sangamo’s brain-bound delivery system.
Our take: For a company that’s recently lost partners, staff, and almost its footing, Sangamo’s capsid platform is doing all the heavy lifting with STAC-BBB now licensed across three pharma giants. As gene therapy reassesses its future, delivery tools like this one might just decide who stays on the map. It's been a tough time for Sangamo, but this latest deal offers an immediate cash injection and long-term growth prospects.
🇪🇺 Widening countries look to EU biotech initiatives for support (Science Business): Central and Eastern Europe’s biotech ecosystem is gaining steam, but investors remain wary. For example, Lithuania now ranks third globally for biotech R&D spending, but much of the region still leans on foreign-led clinical trials and public grants. The forthcoming EU Biotech Act aims to bridge this gap, supporting local innovators with better funding access, regulatory streamlining, and cross-border collaboration.
Our take: The science is here. The spirit, too. But biotech in Central and Eastern Europe is still playing catch-up – trapped between historic underfunding, geopolitical caution, and regulatory fog. If the EU wants its life sciences strategy to be more than a western affair, it must champion the east not just with funds, but with infrastructure, policy clarity, and a loud invitation to the table. No innovation left behind, please.
💩 FDA approves BMS's dual checkpoint therapy in first-line colorectal cancer (First Word Pharma): The FDA has greenlit Bristol Myers Squibb's Opdivo-Yervoy combo as a first-line treatment for metastatic colorectal cancer patients. Backed by data from the Phase 3 CheckMate-8HW trial, which showed the duo cut the risk of progression or death by a striking 79% (and with fewer side effects) compared to chemotherapy. Following an EU approval in December, this marks a shift toward more personalised, tolerable care.
Our take: This approval signals a clear step towards embedding biomarker-led immunotherapy in earlier treatment lines. Dual checkpoint blockade isn’t new, but applying it first-line in MSI-H/dMMR colorectal cancer shows regulators and clinicians are backing efficacy over convention. As more trials push for earlier use of immunotherapy, the real work will be in patient identification and managing long-term toxicity.
💊 First potential treatment option for MS found in drug tolebrutinib (GEN): A Cleveland Clinic-led Phase 3 trial has spotlighted tolebrutinib as a potential breakthrough treatment for non-relapsing secondary progressive multiple sclerosis (SPMS) – a notoriously stubborn form of the disease. The BTK inhibitor delayed six-month disability progression by 31% in 1,100+ patients. Designed to cross the blood-brain barrier, it targets B cells and microglia to tackle chronic neuroinflammation driving progressive disability.
Our take: This could mark a turning point for SPMS care, where therapeutic inertia has long been the norm. By acting both peripherally and within the CNS, tolebrutinib broadens the BTK class’s neurological ambitions. Safety concerns remain, particularly around liver function, but for a condition with no approved treatments, this candidate has real potential to shift clinical expectations – and regulators are paying close attention.
🇨🇳 US biotech needs $15 billion boost to compete with China, commission warns (The Pharma Letter): The National Security Commission on Emerging Biotechnology has sounded the alarm this week, urging the US government to invest $15 billion to safeguard its leadership in biotechnology in response to competition from China. The report predicts that China will surpass the US, posing risks to US national security and economic competitiveness. To stay ahead, the recommendations call for a unified strategy, streamlined rules, and stronger public-private ties.
Our take: The NSCEB’s report calling for extra investment is an urgent wake-up call. While China builds long-term industrial capability through strategic state support, the US continues to rely heavily on fragmented private-sector momentum. Without bolstering domestic manufacturing, easing regulatory friction, and anchoring public-private partnerships in infrastructure rather than policy alone, the US risks ceding key segments of the biotech value chain – not just IP, but also scale, supply and security.
And finally….
🇻🇮 Trump threatens to end pharmaceuticals tariff exemption (BBC News): President Trump has signalled “major” new tariffs on imported pharmaceuticals, targeting a supply chain worth over $200 billion. India, Europe and China currently supply most US medicines duty-free, though for active pharmaceutical ingredients, that may soon change. Experts warn these measures could drive up drug prices and worsen shortages, especially for generics, before any meaningful increase in US manufacturing capacity can take hold.
Our take: The prospect of imposing "major" tariffs on imported pharmaceuticals mark a serious inflection point in US pharma policy. While reshoring drug production is a defensible goal, the timeline mismatch could have far-reaching consequences for public health, global trade, and the affordability of medicines. Infrastructure takes years to build, but tariffs bite immediately, meaning a difficult transition before domestic production ramps up, let alone retaliatory measures or disruptions.
Tune in 🎧
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📊 Building biotech data tools to revolutionise life science: This latest episode discusses biotech’s data problem and how outdated tools are holding back life sciences innovation.
🌊 Between the biotech waves – Paul Matteis, Stifel: Paul, Head of Therapeutics Equity Research in Biotech at Stifel, discusses the current market dynamics affecting the biotech industry.
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🫁 Founder in Residence, Reversing fibrosis, Deep Science Ventures: Fancy rewiring immune cells to outsmart fibrosis? Work on protein engineering, turn insights into spinouts, and build the next breakthrough biotech from scratch.
🤑 Director, Business Development, UK BioCentre: Can you smell a multimillion-pound deal a mile off? This senior role is ideal for high-level applicants with a background in biobanking, clinical research, CROs, or lab services.
🔬 Account Manager - Biotech, Avantor Sciences: Good at keeping your pipettes and your clients in order? This position entails developing strong relationships with their customer base in the biotech market for a portfolio of lab consumables, PPE, and other equipment.
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🇩🇪 28-29.04 | BioVaria 2025 | Munich, Germany: Join technology scouts, business developers, investors, scientists, founders, and technology transfer experts from across Europe in the biotech and pharmaceutical industries.
🇬🇧 28-30.04 | LSX World Congress Europe | London, UK: The congress features senior life science industry decision-makers from the world's most innovative biopharma, medtech and healthtech companies.
🇨🇳 29-20.04 | ChinaBio® Partnering Forum | Shanghai, China: Connect with key figures and innovators in the biotech and pharma industries to discuss their insights and experiences regarding the newest advancements and trends.
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