The fears that the downward spiral of the capital markets during the financial crisis that occurred in 2008 would be repeated in the wake of last week's "Black Monday" are, for the time being, in the rearview mirror. In fact, the markets have rebounded strongly and now seem poised to remain positive for the final months of the year, although it is predicted there will be some turbulence along the way.
The fears that the downward spiral of the capital markets during the financial crisis that occurred in 2008 would be repeated in the wake of last week's "Black Monday" are, for the time being, in the rearview mirror.
Second quarter financial results for biotechnology companies are coming in thick and fast and overall, for the larger biotech companies at least, their report cards have been positive. However, a few companies failed to live up to expectations. As a result, the BioWorld Blue Chip Index, comprising 20 of the leading companies ranked by market cap, closed July with only a marginal 0.9 percent gain as the gainers just held sway over the decliners.
Second quarter financial results for biotechnology companies are coming in thick and fast and overall, for the larger biotech companies at least, their report cards have been positive. However, a few companies failed to live up to expectations.
Laboratory space is at a premium in popular and thriving biotech hubs such as Boston, Raleigh-Durham, San Francisco and San Diego. The high demand for limited laboratory space in these regions is driving up rental costs significantly. Factor in increasing salaries that are needed to attract and retain highly trained talent and these forces are contributing to biopharmaceutical companies looking to set up shop in suburban market locations where space is readily available or can be constructed, while still providing proximity to talent and resources.
Big pharmas are continuing to exhibit a healthy appetite for deal making, particularly for early stage therapeutic assets. Last week, for example, Merck & Co. Inc. scooped up a small Israeli biotech, Ccam Biotherapeutics Ltd., to add its immuno-oncology (I-O) pipeline. The space is hot and like many big pharmas, Merck is "scouring the world, looking for immunomodulatory agents," according to Eric Rubin, vice president and therapeutic area head of oncology early stage development at Merck Research Laboratories. (See BioWorld Today, July 29, 2015.)
Following Biogen Inc.'s lackluster report last week, Gilead Sciences Inc. is getting the second quarter biotechnology earnings season back on track, reporting its financial results after the markets closed on Tuesday.
Effective treatments for sickle cell disease (SCD) have been 100 years in the making but are now nearing the finishing line. Several companies are advancing innovative potential treatments for the disease and its associated complications. That will come as welcoming news given the fact that only one FDA-approved drug is available and none have yet hit the market that treat the associated ongoing vaso-occlusive crisis (VOC) or underlying ischemia and infarction that reduce the average life expectancy of people suffering from the disease.
The land grab for assets continued at a torrid pace in the second quarter as pharma and biotech companies opened their bulging wallets to help strengthen pipelines and position themselves in future emerging technologies.
