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Good morning, everybody. Damian right here with a have a look at the legacy of a pharma CEO, but extra biotech layoffs, and a reprieve from the GLP-1 panic.
How will we bear in mind Humira?
For the final decade, AbbVie CEO Richard Gonzalez has presided over the drug business’s most enviable money cow, making billions in gross sales on the autoimmune therapy Humira regardless of the expiration of the drug’s core patents. With Gonzalez now slated to step down, what is going to the business bear in mind: the profitable returns or the unceasing controversy?
As STAT’s Matthew Herper writes, AbbVie’s share worth elevated nine-fold over Gonzalez’s 11-year tenure, greater than that of any massive drugmaker. And whereas the corporate’s technique of knitting a “patent thicket” to guard Humira’s gross sales landed Gonzalez in entrance of offended legislators, the backlash was by no means sturdy sufficient to place AbbVie within the firm of company villains like Valeant Prescription drugs, Insys Therapeutics, or Turing Prescription drugs.
It didn’t precisely make Gonzalez a pharmaceutical hero, both. Some CEOs stand out as voices for business ethics, as defenders of science, or as visionaries on the scope of what a drug firm can do. Gonzalez is extra more likely to go down as a man who found out how you can make some huge cash with out caving to criticism.
Learn extra.
One other biotech startup is reducing employees
This time it’s Ring Therapeutics, a Flagship Pioneering firm with an bold plan to engineer a brand new class of viruses to make gene remedy safer and extra environment friendly.
As STAT’s Jason Mast stories, Ring has laid off slightly below 20% of its employees, or 19 workers. The corporate, launched in 2017, raised an $86.5 million C spherical final 12 months, including to a $117 million Sequence B in 2021 and a $50 million Sequence A in 2019.
The information comes simply after Sonata Therapeutics, one other Flagship startup, laid off a 3rd of its employees. Flagship, the agency behind Moderna, has run into setbacks in its makes an attempt to duplicate that success. Laronde Therapeutics laid off a few dozen workers amid an information integrity drawback, whereas Kaleido Biosciences, Evelo Biosciences, and Axcella Well being have all shut down.
Learn extra.
Truly Wegovy is good for dialysis firms
Not less than in keeping with the CEO of Fresenius Medical Care, a dialysis supplier whose shares have been risky since Novo Nordisk’s GLP-1 drugs demonstrated long-term advantages for sufferers with weight problems final 12 months.
In an interview with Bloomberg, Helen Giza stated the selloff was overdone. A lot of sufferers with power kidney illness die from heart problems earlier than ever occurring dialysis, Giza stated. Which means, if therapies like Wegovy can forestall coronary heart assaults and strokes, they’ll truly show to be a internet profit for firms like Fresenius, she stated.
Whether or not that’s true stays to be decided, however final 12 months’s GLP-1 market panic does appear to have subsided. Fresenius, which fell by double-digits in October, has now made a full restoration, and Davita, a rival agency, is up about 66% after cratering across the identical time.
Vir has reset
Vir Biotechnology is parting methods with its chief medical officer, the final govt left from the corporate’s early days, because it restructures and pivots away from a foundational give attention to virology.
Phil Pang, who joined Vir in 2016, is leaving “to spend extra time together with his household,” the corporate said in a statement. As Ron Leuty of the San Francisco Enterprise Occasions pointed out, his departure means all however two members of Vir’s 10-person govt group have been changed since CEO Marianne De Backer joined the corporate final 12 months.
In the meantime, Vir is within the strategy of shedding 12% of its employees, closing two R&D amenities, and widening its analysis focus to incorporate autoimmune illness and oncology. The corporate has misplaced greater than 50% of its worth since final summer season, when its preventive drugs for influenza A failed in a big medical trial.
Extra reads
- Hospitals race to undertake generative AI, at the same time as regulators battle to maintain up with the dangers, STAT
- Introduction, Blackstone are stated to circle $20 billion Sanofi arm, Bloomberg
- Meet the fetal surgeon forging CRISPR’s subsequent frontier: curing illnesses within the womb, STAT
