1. Expect Ongoing Disruption in the Biotech Sector – Biotech companies will continue to encounter a myriad of issues around financing. Stock prices of publicly traded biotechs continue to languish. Venture Capital (VC)-funded biotechs are struggling to secure their next round of investment or the funding of their ongoing clinical development programs. VCs have become highly selective and this elongates the investment path.
  2. The United States is the Place to be – Large non-U.S. pharmas and foreign biotechs are increasingly looking to the United States as a destination for growth. While acknowledging the size of the U.S. market, the underlying motivation to “go U.S.” is driven by current finances, a large market, and other drivers. In turn, this creates opportunities for U.S. VCs and other funding sources to “onshore” innovative technology and products.
  3. Artificial Intelligence (AI) in Pharma is Still to be Determined – While going strong in the medtech and medical device sectors, the validation of AI use in drug development and adoption by big pharma will take time. Validation of the use of AI will likely occur through a combination of incremental technological success, regulatory approval, and commercial adoption.
  4. Disruption Creates Opportunities – Investors who remain disciplined, but also operate outside the norm, can take advantage of the disruption and access technologies that may not have otherwise been on the radar.
  5. Expect Increasing Use and Introduction of Innovative Financing – The uncertain market is ripe for nontraditional sources of funding. As providers of alternative financing become more sophisticated in their structures to meet the needs of the market, expect to see further unlocking of creative funding to meet market demand.