Next Phase Newsletter

By Sougato Das, President and COO, LSN

The newly proposed 200% pharma tariff threat (not a reality yet, but Trump has indicated they will go into effect on August 1) hasn’t delivered an immediate market shock; biopharma stocks have remained steady, albeit flat. The 12-18 month grace period included in the tariff proposal gives large pharma wiggle room to pivot to US manufacturing while stockpiling to ride out the remaining 2 – 3 years required to make the transition. Predictably, there are concerns that such tariffs could increase drug costs, lead to shortages, impact profit margins (dampening appetite for investment/BD) and disrupt the supply chain.

The tariff threat has, however, catalyzed a strategic pivot toward U.S. manufacturing, with major firms like Biogen, J&J, Eli Lilly, Roche, Sanofi, and Merck spending billions in U.S. facilities.

In the biotech investment and BD community, the question is: how will/has this affect/ed investment and BD activity?

• Overall biotech investment may slow as cost inflation pressures biotech valuations and investment capital.
• It has been theorized that the pharma tariff threat has contributed to the IPO dry-up in life sciences (nearly all biotech IPOs since 2023 are trading below their IPO price). A continued drought would obviously have a negative impact on biotech venture investment.
• If large pharma funnels billions into new manufacturing plants, that money must come from somewhere (usually R&D), and may signal a further slowdown in pharma partnering and investment.
• An unpredictable economic environment could deter biotech investment. Such investor caution could lead to more selective funding rounds and a decrease in overall venture capital flowing into the sector.
• Finally, it’s well-understood that investors are becoming more selective, focusing on companies with de-risked assets, strong scientific data, and clear commercialization potential.

On the positive side, we see pharma biotech acquisitions up, simply due to how inexpensive small biotechs are to buy right now.

These factors make it far more critical this year than in 2024 or 2023, that you meet with elevated numbers of investment or strategic partners to overcome the above hurdles. Partnering events like RESI are the best way to have 10-20 investor meetings in a day. Using Life Science Nation’s BD Assist, where we set up investor meetings for you, is another option to supercharge your fundraise.

Tags: business, economy, finance, investing, politics, startups, venture capital

By Sougato Das, President and COO, LSN

CFIUS, short for the Committee on Foreign Investment in the United States, is an interagency committee tasked with reviewing foreign investments into U.S. companies that may present national security risks. Though created in 1975, CFIUS has recently expanded its focus to include sectors such as biotechnology, in light of evolving global priorities and concerns.

A recent presidential memorandum has signaled heightened attention to biotech transactions, particularly those involving sensitive technologies and personal health data. The memo also outlines a more streamlined process for investment reviews involving allies of the United States, while suggesting a more cautious stance toward investments from jurisdictions deemed non-aligned. Although not yet codified into law, these signals indicate that the regulatory environment is tightening for some international investors.

Biotech startups should not interpret this shift as a prohibition, but rather as an evolving framework that will increasingly require awareness, strategic planning, and legal clarity when engaging global investors and partners. This is particularly relevant for companies with potential funding interest from regions such as Asia, including China and, more recently, jurisdictions currently under enhanced CFIUS scrutiny.

Global Fundraising: A Numbers Game with Strategic Implications

For over a decade, Life Science Nation has been building and guiding early-stage companies through capital fundraising and licensing campaigns from a global perspective. There are two fundamental reasons why this work must be approached as a numbers game. In today’s fragmented global funding landscape, visibility, volume, and variety are essential for finding and securing the right partners. First, if you confine your outreach to your home region or country, you can quickly exhaust the pool of suitable targets. Second, when you do find a lead investor or licensing partner, they typically want to see a geographically diversified syndicate. As development progresses and commercialization strategies take shape, having informed and engaged partners across key global regions becomes not optional, but essential.

Failing to secure global relationships early on, whether due to limited strategy, policy restrictions, or lack of access, can create real obstacles to growth. Overly restrictive capital policies risk unintentionally slowing innovation and creating pressure for startups to move offshore. In an increasingly interconnected life science ecosystem, enabling global access to capital and partnerships is critical to maintaining U.S. leadership in biotech innovation.

Moving Forward

As the landscape for global biotech investment continues to evolve, early-stage startups will benefit from understanding CFIUS and related frameworks. While the regulatory terrain may shift, it still presents a significant opportunity for those who prepare strategically.

Early-stage biotech companies that navigate these cross-border dynamics with foresight and structure will be best positioned to engage international capital, generate high-value data, and build toward global commercialization.

Startups are encouraged to attend RESI Boston on June 16th or connect with industry experts for a deeper discussion. Register RESI Boston June now.

Tags: business, economy, finance, investing, politics, startups, venture capital