GBI’s Robert Gustines, Vice President Business Development participated in this Pharma Almanac’s roundtable discussion.
The topic of discussion was “What are the Current Investment Trends in the Pharmaceutical Industry, and How are They Influencing the Sector’s Direction?”:
Robert Gustines, Vice President Business Development, GBI Biomanufacturing
Biopharmaceutical investments were low in 2022 and early 2023 but accelerated in late 2023, with several deals in excess of $50 million. That trend hopefully continues in 2024. Several multibillion-dollar M&A deals in Q1 of this year should spark new investment and enthusiasm for platform companies and those advancing single therapies headed for the clinic or in early clinical seeking additional investment to advance. Of concern, we’ve seen many biotech layoffs in 2023, not just smaller platform/single asset companies but big pharma as well. Beyond the clinical lead, portfolio development is dormant, and development layoffs ensue. Fortunately, big pharma has taken up some of the slack in hiring in late ’23. Deals from Q4 2023 into 2024 cover multiple technologies: CRISPR, CAR-T, mAbs, and multi-specific antibodies, small molecules, LSDs, and siRNA included. Two standouts: radiopharmaceuticals and antibody-drug conjugates (ADCs). As new investments come to fruition, CDMOs are ready for new projects to ensure developers have access to capacity. Currently, available capacity varies depending upon the CMO, but I expect the sector will respond to demand as funding flows in. We may not see investment pace 2021, but technological advances are too real and irresistible to wait on the sidelines.
