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Venture capital investments in biopharma were down in 2023, according to a new report from PitchBook, which found there was $29.9 billion invested in the sector, compared to $36.7 billion in 2022. The report sums up some of the reason for this as a shift in strategic thinking as investors are “supporting fewer companies but with significant development progress.” This bodes well for established biotechs looking for later-stage investment but may spark concerns for those whose tech is more experimental. Biotech companies probably need to be planning for longer runways after getting funding, too, as the report notes “an increased median interval” between rounds.
Two big areas of interest to investors in 2023 are no big surprise: AI for drug discovery and obesity drugs, which have attracted investment interest thanks to big exits as well as multi-billion dollar research partnerships with big pharma companies. But the report notes there are also three emerging therapeutic areas that are also attracting increased attention: molecular glues, which are being used to open up protein degradation as a treatments option for cancers and other diseases; epigenetic editing, which offers potential efficacy for genetic disorders without some of the safety challenges of conventional gene therapy; and macrocyclic peptides, small proteins that potentially offer the benefits of both biologics and small molecules without their drawbacks.
Meet CHAI: The Nonprofit Supergroup Wrangling Health AI’s Wild West
The Coalition for Health AI, which has over 1,300 members, is looking to develop standards, validation labs and a national registry of health AI tools. Board members include representatives from Microsoft, FDA, ONC, Mayo Clinic, Bessemer Venture Partners, Johns Hopkins and others.
Read more here.
Pipeline & Deal Updates
Over-The-Counter: The FDA cleared Dexcom’s Stelo as the first continuous glucose monitor to be sold over-the-counter for people “who want to better understand how diet and exercise may impact blood sugar levels.” The device records readings every 15 minutes and users can wear the sensor for up to 15 days, but the agency warns that it should not be used to make medical decisions without consulting a healthcare provider.
Autoimmune Treatments: Alumis, which is developing drugs aimed at treating immunological diseases like psoriasis and lupus, announced it has raised a $259 million series C round co-led by Foresite Capital Samsara BioCapital and venBio Partners. The round is aimed at supporting phase 2 and 3 clinical trials for its lead drug candidate.
M&A: Phage therapy biotech BiomX announced that it’s entered into a merger agreement with Adaptive Phage Therapeutics. The new private company will be owned 55% by BiomX shareholders and 45% by APT shareholders and includes $50 million in gross proceeds to BiomX.
Digital Diagnosis: BrainCheck, which has developed a digital tool for cognitive assessment, announced it has raised a $15 million financing round to accelerate the commercialization of its tool.
Bone Cancer: Medtronic announced that it has received FDA clearance for its OsteoCool 2.0 device, which is used to perform tumor ablations for patients with bone cancer.
Precision Oncology: FogPharma, which is developing a platform class of therapeutics aimed at hard-to-target cancers, announced it has raised a $145 million series E round led by Nextech Invest. The new funding is geared towards the clinical development of its drug candidate FOG-001, which is aimed at colorectal cancer.
TikTokers Are Stealing Doctors And Nurses’ Photos To Peddle Pills And Powders
Healthcare workers’ names and selfies are being used – without their consent or knowledge – to sell unproven medical treatments to the app’s enormous global audience. And in the Wild West of loosely regulated supplements, many brands are profiting.
Read more here.
Other Healthcare News
Walgreens Boots Alliance CEO Tim Wentworth said the company won’t sell its fast-growing Shields specialty pharmacy, adding it’s a key part of the company’s growth strategy.
Opill, the first over-the-counter birth control approved for use in the U.S., will be available in stores later this month.
CVS and Walgreens will begin selling the abortion pill mifepristone at pharmacies across select states in the coming weeks.
A study published in The Lancet estimates over 1 billion people now have obesity worldwide.
CVS Health is ramping up its affordable housing push and will spend around $35 million for two new housing developments in Hawaii in areas damaged by the Maui wildfires last year.
Alabama legislators advanced bills protecting in vitro fertilization providers from civil and criminal liability, following a court ruling that frozen embryos are children.
The CDC is no longer recommending people with Covid-19 isolate for five days.
Across Forbes
This Bill Gates-Backed Startup Is Trying To Fix Steel’s Horrible Environmental Impact
The Highest-Paid Actors Of 2023
This Billionaire Investor Takes Advice From Usher
What Else We are Reading
How the U.S. is sabotaging its best tools to prevent deaths in the opioid epidemic (STAT)
Charges for emails with doctors and other healthcare providers (KFF)
Millions of research papers at risk of disappearing from the Internet (Nature)
