Biotech Biz – The Recent Biotech Moves
The biotech industry hasn’t been discussed as much recently due to all the hype surrounding other areas like artificial intelligence and electric vehicles. Although it seems as though they had their one big moment during COVID-19, the pandemic simply opened what’s to come for the industry moving forward. Moderna, along with other businesses, introduced the concept of mRNA vaccines with their COVID-19 vaccines, a revolutionary innovation in fighting diseases from here on out.
The possibilities of mRNA vaccines are being shown with the experimental cancer vaccine tested by large biotech firms Moderna and Merck. Early research shows that the vaccine cut the risk of death or recurrence of melanoma by 44 percent compared to Merck’s immunotherapy by itself, which could be a breakthrough in the medical field. This comes after many companies like BioNTech are looking into developing vaccines and treatment for cancer using mRNA technology, with the FDA labeling this a breakthrough therapy as Phase 3 trials will occur sometime this year.
Merck is not finished making moves though as they purchased Prometheus Biosciences for $10.8 billion, giving them exposure to IBD and immunology while providing promising treatments for ulcerative colitis and Crohn’s disease. Many mergers and acquisitions have occurred in the biotech industry as of late, and many argue that Merck might have overpaid in this bidding war considering the sale price was at a 75 percent premium to Prometheus’ previous close. Even with this concern, it is important to realize the bright future of biotech firms as disruptive technologies like AI get incorporated into the industry, which means endless possibilities.
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I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.