#37 - PrEP, plastic-eating proteins, & a pricey pivot
The coffee break biotech roundup, by SomX.
Hey big spenders,
This week’s lineup comes with a hefty price tag. Roche is tightening its belt with a $2.4B gene therapy write-down, Gilead’s long-acting PrEP shot could change HIV prevention, Daiichi is backing RNA’s leap beyond the liver, and a former high school science project just scored $18.3M to turn fast fashion’s plastic waste into a fading trend.
See you at the next trade,
Dodo
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🧽 Roche absorbs $2.4B impairment in overhaul of Spark gene therapy unit (BioSpace): Turns out, ambition isn’t cheap. Amid restructuring of Spark Therapeutics, acquired for $4.8 billion in 2019, Roche must now tally the cost of its ambitions. The acquisition initially banked on two assets: FDA-approved Luxturna for rare blindness and SPK-8011 for haemophilia A. Roche has since shelved SPK-8011 for another therapy with improved function, whilst also axing other assets for haemophilia A and Pompe disease.
Our take: Gene therapy’s promise has never been in question – its business model, however, is a tricker story. Roche’s retrenchment highlights the challenge that approvals alone don’t guarantee commercial viability. In 2024, Luxturna brought in less than $20.5 million, a 59% year-on-year decline in sales. Still, with ongoing partnerships – like its $1 billion deal with Dyno Therapeutics – Roche isn’t stepping away from gene therapy just yet (but may well have learnt an expensive lesson).
🧬 Daiichi taps Nosis to deliver RNA therapies beyond the liver (Fierce Biotech): RNA's great escape plan begins! The Japanese pharma giant is venturing beyond its usual expertise through a partnership with California's Nosis Biosciences. Best known for antibody-drug conjugates like cancer treatment Enhertu, Daiichi has long sought to expand beyond oncology. Nosis brings its Connexa platform to the table, which claims to target any gene in any cell type, potentially unlocking new treatments for neurodegenerative and respiratory diseases.
Our take: The liver gets all the attention, doesn't it? Historically, RNA-based drugs like siRNAs or antisense oligonucleotides have primarily targeted diseases with hepatic involvement. But getting RNA therapies to the heart, lungs, or brain? That’s another story. Nosis thinks it has cracked the code by combining AI drug design with single-cell biology. It’s early days – IND studies aren’t expected until 2025 – but Daiichi’s interest suggests this one is worth watching.
💰Roche broadens obesity drug plans with $1.65B Zealand deal (Biopharma Dive): Roche is spending a hefty $1.4B upfront, plus $250M in anniversary payments, to license Zealand Pharma's obesity shot petrelintide – with potential milestone payments of $5.3B. Together, they plan to commercialise the amylin analog in the US and Europe – sharing profits and losses. Roche will handle manufacturing, saving Zealand millions to secure manufacturing capacity and the production panic that gave Novo and Lilly migraines.
Our take: The GLP-1 boom is reshaping obesity treatment, but tolerability remains a key hurdle in the old nausea-vs-efficacy balancing act. Amylin analogues like petrelintide could offer a more balanced approach, regulating appetite while mitigating the nausea linked to GLP-1s. As the obesity treatment sector approaches its projected $100 billion valuation, Roche's strategy – developing both single agent and combination GLP-1 therapies – could secure them significant market share in this rapidly expanding therapeutic area.
💉 Gilead data suggest once-yearly shot of PrEP drug blocks HIV infection (STAT): Adherence anxiety gets a 364-day vacation. Gilead has published promising data suggesting a new formulation of lenacapavir could prevent HIV infection with just a single annual injection. Researchers measured drug levels in two groups of 20 volunteers receiving different formulations. Both groups maintained higher blood levels of the drug over 56 weeks than those receiving six-monthly injections in previous large trials, indicating the new formulation should provide equivalent protection against HIV infection.
Our take: Current PrEP regimens demand either daily pills or bi-monthly injections, while lenacapavir (already approved as Sunlenca for treatment) offers a once-yearly alternative that study participants preferred. Unfortunately, the $42k US price tag is a significant hurdle. However, Gilead has committed to provide the drug at no cost in low and middle-income countries, vital for high-risk populations such as women in sub-Saharan Africa. Robin Hood would approve (maybe).
And finally…
♻️ From high school science project to $18.3M: AI-accelerated enzymes are coming for fast fashion’s plastic waste (TechCrunch): Science fair to fashion saviour! Backed by Inditex – the giant behind Zara – Epoch has inked a multi-year development deal to tackle ‘the plastic problem’. Since its 2019 founding, the 30+ team of scientists and engineers is ready to launch its first plant this year – capable of devouring 150 tons of waste annually. The startup aims to reach commercial-scale capacity by 2028 (if not sooner), with plans to double their team over the next year.
Our take: In a world drowning in 400M tons of plastic annually, Epoch combines AI-guided enzymes with cost-effective industrial processes – no energy-guzzling high temperatures required! Their focus on polyester and nylon puts them squarely in the crosshairs of fast-fashion giants scrambling to meet mounting regulatory demands and consumer calls to action. Has fast fashion's dirty laundry met its match?
Tune in 🎧
📈 BNP Paribas’ Moneer on Biotech’s Bull Case: M&A, PE, and Market Recovery
Learn about the role of private equity firms in biopharma, and the growing trend of pharma engaging with – and investing in – early stage biotechs.
🚀 An explosive SpaceX launch, the lunar robot landing, and THAT woolly mouse
Hear about the fiery conclusion of SpaceX's Starship test flight, the use of woolly mice to bring back the woolly mammoth, and the return of the two astronauts who are stranded on the ISS.
♫ Can AI Turn Music into Medicine?
Can music actually improve our mental health? With the help of AI-curated music playlists and technology that reads your facial expressions as you listen, music could indeed be used as medicine.
Apply ✍️
🔧 Junior Quality Engineer, Crux: Love perfecting the details? Support quality assurance, refine processes, and help maintain compliance across medical device and consumer goods development in this hands-on engineering role.
🧪 Senior Scientist, Inflammation, Amgen: Can you decode immune system mysteries? Identify new therapeutic targets, design cutting-edge assays, and drive discovery efforts to combat inflammatory and autoimmune diseases.
🌍 Associate Global Medical Director, MASH and Liver Diseases, Novo Nordisk: Fascinated by connecting science to strategy? Shape medical perspectives, lead key projects, and drive scientific exchange to improve lives of people with MASH and cardiometabolic diseases.
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👩🏻⚕️ 18-19.03 | FemHealth Integrates 2025 | Manchester, UK: Tackling both decades-long inequalities and the emerging field of FemTech, FemHealth Integrates is the perfect opportunity for people of all genders to come together to bring about greater equality in biotech and healthcare.
🇬🇧 18-19.03 | Advanced Therapies | London: Europe’s largest commerical cell and gene therapy conference, join l experts from every stage of CGT development to discuss the strategies driving the industry forward.
🇪🇸18-20.03 | Bioprocessing Summit Europe | Barcelona: This conference focuses on the latest innovations in bioprocess R&D, as well as the practical solutions to enhance efficiency, speed and cost in biomanufacturing.
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