Week of Jan. 9, 2023

This week we look at proposed pricing increases for the Moderna COVID-19 vaccine, changes in the private equity landscape for biopharma and strategic announcements from Pfizer. We also highlight remarks from the Food and Drug Administration commissioner at the JP Morgan conference and major commitment in venture capital investing from Sanofi.

Each week we highlight five things affecting the life sciences industry. Here’s the latest.

Moderna has set pricing expectations of its COVID-19 vaccine at $110 to $130 once its government contracts end and it begins its full commercial distribution. This price target is in line with Pfizer’s target range released in October 2022. The U.S. government currently pays around $26 per dose for Moderna’s updated booster shots.

In what has become a challenging funding environment for biotechs, there are signs of life within private equity investment; however, the investment isn’t coming in traditional forms. While historical investment has favored leveraged buyouts, current investment is favoring collaboration and licensing agreements.

At the 2023 JP Morgan Annual Healthcare Conference, Pfizer’s CEO outlined its plans for the next 18 months, which the company believes will set the stage for $70 billion to $84 billion in revenues by 2030. Most notably, the company touts 19 planned drug launches or label expansions over the next 18 months, a strong drug development pipeline to overcome its $17 billion in patent expirations coming in the next decade, and a portfolio of mergers and acquisitions deals while avoiding a pharma megamerger.

FDA Commissioner Robert Califf spoke twice at the JP Morgan conference this week. Three focus areas in his remarks included increased onshoring of clinical trials, addressing vaccine disinformation and changes to accelerated approval processes.  Additionally, he addressed criticism related to the FDA’s recent approval of a new Alzheimer’s drug.

Sanofi announced this week that it is committed to investing $750 million in Sanofi Ventures over the next several years. During 2022, the company’s venture capital division invested in 10 companies worldwide, and this additional commitment will allow for a significant expansion of the existing portfolio. Sanofi has been a major participant in the biotech venture capital markets since 2011 and has made investments in a diverse set of companies in various stages of development.

Source link: https://realeconomy.rsmus.com/5-things-to-know-in-life-sciences-week-of-jan-9-2023/ by Justin Culbertson at realeconomy.rsmus.com