Next Phase Newsletter

By Greg Mannix, VP, EMEA Business Development, LSN

Editor’s note: The below article is a digest of published expert analyst commentary rather than original content.

According to analysts, RFK Jr’s nomination to head HHS may have introduced a level of uncertainty when it comes to the future of biotech and pharma investment, especially in the areas of vaccines and infectious disease. After his appointment, pharma stocks, especially those of vaccine makers, dropped. Regulatory uncertainty is generally not ideal for the industry. For example, Moderna tried to reassure investors by asserting that according to legislation, the secretary’s role is management, not policy. We may see an RFK who focuses on diet and obesity prevention and leaves regulatory matters for the FDA commissioner (Trump nominated Marty Makary, MD). On the other hand, if HHS, FDA, CDC (for which Trump nominated Dave Weldon, MD) and NIH (for which Trump nominated Jay Bhattacharya, MD, PhD) see a departure of resources with scientific expertise, the resulting uncertainty could have a dampening effect on investment, especially at the venture stages. However, reducing FDA funding may face hurdles due to nearly half the agency’s budget being funded by user fees rather than federal funds.

RFK Jr has expressed skepticism of the transparency of the safety data behind COVID vaccines as well as vaccines for measles and polio. However, his primary complaint has been mandates rather than regulatory process; He has also expressed sentiment toward GLP-1s, highlighting that these drugs address symptoms rather than food system issues. This has resulted in some industry analysts expressing concern about the confidence of investors who fund vaccines or infectious disease therapies.

NIH funding is also a concern to biotech investors. RFK Jr previously stated that he would reduce NIH staff by 600 – 20,000 employees on his first day on office, potentially shrinking an organization that spends $50B on research, either directly, through monetary grants or through partnerships. Watch our video with the NIH, where they explain funding and partnering options beyond SBIR. Given the reliance life science startups have on NIH funding and partnerships, an RFK Jr effect on startup investment dollars could be most influenced in the short term by potential changes at the NIH. RFK Jr also said that he wants the NIH to take an 8-year break from researching infectious disease, presumably to focus on chronic diseases. He has also stated in the Wall Street Journal that half of NIH’s budget should be dedicated to research on preventative, alternative and holisitic medicine. Notwithstanding the above, the first Trump administration recommended cuts in federal spending on research too, but the NIH saw its budget increase 30% between 2016 and 2020.

Finally, RFK Jr has indicated that he wants DTC pharmaceutical advertising to cease. Analysts have estimated returns on DTC advertising to be 100% to 500%, and some have indicated that such a ban would reduce pharmaceutical revenue.

All that said, many analysts and government experts have indicated that they do not believe RFK Jr. will end up making seismic shifts in the above areas, due to congressional oversight, industry pressure or precedent during the first Trump administration. Perhaps more important will be Makary’s moves as FDA commissioner and Bhattacharya’s actions as head of the NIH. The one thing we can be sure of is the first quarter of 2025 will certainly be carefully watched by the biotech investors.

By Dennis Ford, Founder & CEO, Life Science Nation (LSN)

Life Science Nation (LSN) is proud to embark on our inaugural RESI London, taking place December 4-6, 2024, and the milestone 50th RESI JPM, scheduled for January 14-16, and 21, 2025, offer unparalleled opportunities for companies to jumpstart their fundraising efforts and shape their future in the industry. RESI London: A European Springboard, imagine stepping into the heart of the UK’s vibrant life science ecosystem at RESI London, co-located with Genesis 2024. This event isn’t just a conference; it’s a launchpad for companies looking to make their mark in Europe. Here, you’ll have the chance to refine your pitch for a discerning European audience, engage with elite investors and licensing partners, and showcase your innovation in the Innovator’s Pitch Challenge (IPC). The hybrid format, combining an in-person day with two days of virtual partnering, ensures you can maximize your reach and flexibility. RESI JPM: Where 2025 Global Partnering Roadshows Take Flight. As the calendar turns, RESI JPM in San Francisco beckons, offering a global stage amidst the energy of JPM Healthcare Conference week. This flagship event is your ticket to connecting with over 600 investors spanning the “4 Ds” – Drugs, Devices, Diagnostics, and Digital Health, as well as R&D Tools and Services. Picture yourself pitching to a panel of industry luminaries, forging connections that could define your company’s future, and kicking off the year with momentum that could carry you through 2025 and beyond.

The Art of Refinement

Remember the old joke about getting to Carnegie Hall? “Practice, practice, practice.” The same principle applies here. By participating in both RESI London and RESI JPM, you’re not just attending events; you’re embarking on a journey of refinement. Each interaction, each pitch, each conversation is an opportunity to hone your message, gain invaluable feedback, and build a global network that could be the key to your success.

LSN’s Global Partnering Ecosystem Is Your Secret Weapon

Behind these events lies LSN’s global partnering ecosystem. This isn’t just a network; it’s a sophisticated matchmaking system that spans the “4 Ds” and beyond, including R&D Tools, Services, and AI. With curated data profiles ensuring precise matches and a series of worldwide partnering events, LSN offers you a comprehensive toolkit for navigating the complex landscape of life science innovation and investment.

A Strategic One-Two Punch

Attending both RESI London and RESI JPM isn’t just about being present; it’s about strategic positioning. Use RESI London as your European warm-up, refining your approach for a continental audience. Then, take those lessons learned and amplify your impact at RESI JPM, where you’ll be primed to make a lasting impression on the global stage. This continuous engagement across two major markets isn’t just networking; it’s momentum-building at its finest. The time to act is now. By securing your place at both RESI London and RESI JPM, you’re not just registering for events; you’re investing in your company’s future. With LSN’s tailored support guiding you every step of the way, you’ll be equipped to navigate the challenges of the life science landscape and transform your innovative ideas into reality. Don’t let this opportunity pass you by – your next big breakthrough could be just one connection away.