September BioBullets
"The biotechnology wave is similar to the information technology wave of the 1980's and 1990's." Dietmar Hopp
We hope you survived September as it was another full of havoc and sell-downs. We have our focus on the horizon and opportunities abound.
Monetary policy led the response from the dot-com bust through to covid-19. However, central bankers are now on the backfoot fighting inflation. We’ll see fiscal policy levers will be the driver of support for industry, and the biotech sector is likely to be one of the core beneficiaries. Interesting in the detail of Biden’s announcement is the amount of this funding that is aligned to defense and agri interests under the guise of biotech.
Antibacterial resistance is a large technical problem for the sector to solve in the coming decades. With only 1 new chemical entity approved by the FDA in the past 35 years and only 2% of venture capital investment going to the space, February’s BIO report highlights the need and opportunity ahead.
One of many stories recently about biotech’s right-sizing and focus on the core essentials to make their business’ successful is another reminder that the cycles are the constant. For us, this focus driven by market ructions are positive signs and a pre-condition for the next wave of successful companies that will emerge over the next 3-4 years.
Proving resilience matters, the FDA just approved their 3rd treatment ever for ALS. the back-story here is a master-stroke of patient advocacy and ingenuity by the company. They’ve got approval, but still need to run the phase III and potentially withdraw their treatment should that fail!
I look forward to connecting again soon.