Therapeutic mainstays like oncology and neuroscience have hogged the spotlight lately. With flashy billion-dollar acquisitions and groundbreaking drugs for diseases like Alzheimer’s and various cancers, who could look away? Big players like Johnson & Johnson haven’t been shy, forking over a hefty sum of $14.6 billion for neuropsychiatric leader Intra-Cellular Therapies. But wait, 2025 might be flipping the script. Enter obesity treatment and immunology – two rising stars ready to steal the show.
Immunology and inflammation hold a promising future, if you believe Andrew Pannu of Sleuth, who sees biopharma’s radar honing in on this lucrative niche. The global immunology market could balloon over $257 billion by 2032. Source, with last year’s high-stake deals setting the stage for more to come. Gilead Sciences just bet $1.7 billion on LEO Pharma’s promising molecular STAT6 program aimed at inflammatory diseases, perfectly setting the dominoes.
Amid this realm comes a fascinating twist: cell therapy. With approvals for Iovance’s Amtagvi and Adaptimmune’s Tecelra, 2024 marked a standout year. Now, cell therapy targets autoimmune diseases. The groundbreaking work of Georg Schett of the German Center for Immunotherapy showcased eight lupus patients miraculously reaching remission. The excitement is palpable, and big players are rearranging their decks.
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A Time for T Cell Engagers
Let’s talk T cell engagers, the talk of the town. Andrew Pannu sees TCEs gaining traction, especially with M&A heating up. Just a few months back, GSK inked a $300 million deal for a dual CD19 and CD20-targeted TCE from Chimagen Biosciences, and they didn’t stop there. This January, Ouro Medicines kicked off with $115 million to dive into TCEs targeting immune-mediated diseases. And don’t sleep on Candid Therapeutics, aiming high with a $925 million deal with WuXi Biologics for a preclinical trispecific TCE targeting autoimmune maladies.
In oncology, TCEs are stirring excitement, especially in tackling solid tumors. Chris Bardon weighs in. Early challenges aside, the industry’s cracking the code on dosing and patient management.
Obesity’s Next Play
Obesity, the 2024 headliner, isn’t fading away. Verdiva Bio is shaking the industry with a $411 million series A. They’re going toe-to-toe with giants like Novo Nordisk and Eli Lilly, innovating oral, injectable obesity treatments. GLP-1 drugs are hot, with non-GLP-1 candidates making waves too.
GLP-1s are in their prime, says Bardon, mixing with GIP analogs for potency. Behind this promise lies potential vast revenue – possibly upwards of $50 billion. The ambition is massive.
- Verdiva Bio: $411 million raised
- Metsera: $290 million in early 2024, poised for an IPO
Neuromuscular, Kidney, and Cardiovascular Disease
In neuromuscular spaces, strides in Duchenne muscular dystrophy light the way. The landmark approval of Sarepta’s Elevidys represents a beacon of change. Stay tuned as Regenxbio and Dyne Therapeutics deliver next-gen solutions. Kidney and cardiovascular diseasessSS are similarly springing back into the spotlight, with Maze Therapeutics and Kardigan making early plays.
Macro Trends: China and Duopolies
Bigger picture? Remain aware of the growing Chinese influence on big Pharma. Global players now source many of their molecules from China. Old skepticism? Fading. Expect U.S.-China partnerships to dominate.
And those duopolies? They’re dominating spaces like obesity, Alzheimer’s, and depression. Big names like Novo Nordisk, Eli Lilly, Gilead, and Intra-Cellular continue their strangleweight on markets. But does it make sense to join the obesity bandwagon as player number nine? Perhaps, if you’re eyeing potential partnerships or combinations.
Navigating 2025, keep an eye on the shifting currents in these dynamic therapeutic areas. Whether it’s obesity, immunology, or cell therapy, the Broadway of biopharma awaits its next star players. And, as always, watch where the money goes because it rarely lies.