Epoch 11: Investing in Innovation: A Look at Biopharma R&D Spending Trends

Geographies and TAs, China, Artificial Intelligence, Pharma Spending

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Hello Avatar!  Welcome back for another week of biotech analysis. Today is Sunday, which means this is our Building Biotech newsletter that is focused on discussing biopharma strategy topics. Today we are going to cover Biopharma R&D trends.  We will begin by exploring from geographical and therapeutic area perspectives where investment dollars are being deployed.  Following the high level setup we will explore more nuanced areas capital is being deployed including, China and Artificial Intelligence.  Finally we will conclude with aggregated data from recent pharma M&A which reveals a handful of insights about where the buyers are focused.

We are now publishing 4-5x per week according to the following cadence:

• Mondays: BioBucks: Stock Analysis & Biotech Catalysts

• Wednesdays: CRISPR Corner: Monthly gene editing news (monthly)

• Thursdays: Insiders Track: Public & Private Biotech Markets

• Fridays: Sweat Equity: Your Weekly Biotech Fix

• Sundays: Building Biotech: Strategic Topics

Monday’s BioBucks column will feature AltImmune which is scheduled to present top line data from their Phase 2 HepTcell (hepatitis B HBV) trial in Q1 2024. While certainly not their lead program, options pricing suggest 20% volatility.

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Lots to cover this week, let's get started!

R&D INVESTMENT TRENDS

Welcome, today we are going to dive into an analysis on R&D Spending. Our intent is to cognizant of government policies which influence the flows of capital to the highest return opportunities.  Once the macro conditions are aligned for capital to flow into high risk, high return sectors it is our job to assess how (and where) this capital is specifically making its way into biotech.

IQVIA recently published an excellent report which provides in depth statistics on R&D Funding Trends for 2024.   Readers interested in the full report can find it here: IQVIA Global Trends in R&D 2024: ACTIVITY, PRODUCTIVITY, AND ENABLERS.

Today’s analysis will be broken down into the following categories:

1. R&D Investment trends 

2. IPOs

3. M&A

4. Strategic deals

5. China deals

6. Therapeutic area investment 

7. Artificial Intelligence 

8. Pharma spending

R&D INVESTMENT TRENDS & IPOs