News Updates
Incubate’s Investment Tracker measures the impacts of the Inflation Reduction Act’s healthcare provisions on the life sciences ecosystem, with special attention to the impacts of the small molecule penalty.
Alnylam
Discontinued Drug, Discontinued Research
Cambridge, MA
1,001-5,000 employees
“Today announced the decision to suspend further clinical development of ALN-KHK, an investigational RNAi therapeutic targeting ketohexokinase for the treatment of type 2 diabetes mellitus. This decision reflects portfolio prioritization efforts to allocate clinical, managerial and financial resources carefully to bring transformative medicines to patients.”
1 Discontinued Drug: ALN-KHK (biologic)
1 Discontinued Research Program
Pfizer
Negative Outlook
New York, NY
50,001+ employees
Albert Bourla, chairman and chief executive officer:
“Clearly, IRA overall is negative for innovation and does not promote a spirit that people could provide investments, but there are also some good things about it. So clearly, I wouldn’t like to see that the out-of-pocket that next year will be $167 per month for all your medicines for seniors.
“That, we want to be maintained. But this forced price setting is not a negotiation and also the penalty deal between — are things that needs to change.”
Sanofi
Negative Outlook
Paris, France
50,001+ employees
Brian Foard — Global Business Unit Head, Specialty Care:
“I think from an environment standpoint, the Inflation Reduction Act, there’s a couple of things in there. And as we’ve said before, our position is, it’s not really good for innovation just in general, the Inflation Reduction Act.”
Takeda
Layoffs
Cambridge, MA
10,001-50,000 employees
“Takeda is laying off dozens of employees in Massachusetts, according to a Worker Adjustment and Retraining Notification (WARN) alert filed with the state late last week. The layoff process kicked off in late September and will run through March of next year, according to state records.
“While the WARN alert states that 79 employees across the two sites are set to face cuts, the final number “is not clear at this time” and will depend on potential “redeployment opportunities,” according to a detailed filing cited by Boston Business Journal.”
Evotec
Layoffs
Hamburg, Germany
1,001-5,000 employees
“Evotec is having to further shrink its manufacturing footprint and has identified 400 jobs globally that could potentially get cut, with a “sizable share” set to be laid off this year, according to Wojczewski. The first round of layoffs saw 100 workers cut across the UK and US, according to the company presentation. The rest of the layoffs will be made in Germany, Italy and France, Wojczewski added.
The company has also completed the shutdown of its chemistry work at a site in Lyon, France, and is closing an API manufacturing facility in Halle, Germany.”
Vir Biotechnology
Discontinued Research, Layoffs
San Francisco, CA
201-500 employees
“As part of its second-quarter business results, Vir revealed that it will no longer be continuing its work in COVID-19 and influenza, while pulling the plug on its T-cell-based viral vector platform. Instead, the biotech will restrict its virology business to its hepatitis B and D programs, allowing it to focus only on the “highest near-term value opportunities.”
“Under Vir’s strategic overhaul, the biotech will lay off 25% of its workforce, eliminating approximately 140 roles across its operations.”
“Vir now expects to close out the year with around 435 employees, which is some 200 employees fewer from its peak headcount in mid-2023.”
3 Discontinued Research Programs: COVID-19, influenza, and T-cell-based viral vector platform research programs.
Eli Lilly & Company
Negative Outlook
Indianapolis, IN
10,001-50,000 employees
“Specifically, Ricks referred to the IRA’s nine-year restriction on market exclusivity before government price-setting for small-molecule drugs as “terminating ideas before they have time to even grow roots.”
“I think that we’re going to miss the next Keytruda. And that’s why we’re raising the points that we are,” Ricks stressed.”
Bristol Myers Squibb
Discontinued Drug, Discontinued Research
Princeton, NJ
10,001-50,000 employees
Bristol Myers Squibb will cut 6% of its workforce in a restructuring meant to save $1.5 billion in costs by the end of next year.
The layoffs will affect some 2,200 employees, the company said Thursday. It’s also trimming its pipeline of experimental medicines, consolidating its array of offices and laboratories and reducing “third party” spending…
Bristol Myers’ growth in the near term will be hampered by looming patent expirations for its two top-selling drugs: the blood thinner Eliquis, which it sells with Pfizer, and the cancer immunotherapy Opdivo. Its third highest-grossing product, the multiple myeloma treatment Revlimid, already faces limited generic competition.
Eliquis is also one of the first 10 drugs the U.S. government has targeted for price negotiations under the Inflation Reduction Act, or IRA…
“While the IRA has an impact in the middle of the decade, we feel very good about being able to more than compensate for that with a very young and attractive growth profile coming from our … portfolio and the pipeline,” said Boerner, on a conference call with analysts.
The restructuring announced Thursday is another step, designed to prioritize products that Bristol Myers sees as having the highest potential. The company said it plans to reinvest the targeted $1.5 billion in savings in those opportunities.
Two-thirds of the savings is expected to come out of Bristol Myers’ spending on research and development. The company has discontinued 12 programs, including a successor version of its immunotherapy Yervoy, and will continue to review its pipeline through the rest of the year, Samit Hirawat, Bristol Myers’ chief medical officer, said on Thursday’s call.”
1 Discontinued Drug: Yervoy (biologic)
12 Discontinued Research Programs: Yervoy, unnamed research programs
Roche
Discontinued Drug, Discontinued Research
Basel, Switzerland
50,001+ employees
“As for its pipeline, the pharma group disclosed in Wednesday’s earnings presentation that it had discontinued the development of four early-stage assets including camonsertinib—which was being trialed in solid tumors—and belvarafenib, which was likewise being assessed for solid tumors in combination with Genentech’s Cotellic (cobimetinib). Roche also terminated two new molecular candidates—one for colorectal cancer and one for psychiatric disorders.”
4 Discontinued Drugs: camonsertinib (small molecule), belvarafenib (small molecule), unnamed colorectal cancer drug, unnamed psychiatric disorder drug
4 Discontinued Research Programs
BioMarin
Discontinued Drug, Discontinued Research, Layoffs
San Rafael, CA
1,001-5,000 employees
As a result of its prioritized portfolio, four programs will be discontinued, including BMN 331, BMN 255, BMN 355 and BMN 365. None of the programs were discontinued due to safety signals.
4 Discontinued Drugs: BMN 331 (biologic), BMN 255 (biologic), BMN 355 (biologic), BMN 365 (biologic)
4 Discontinued Research Programs
