Biotech Hangout cover image

Biotech Hangout

Episode 132 - February 21, 2025

Feb 27, 2025
Adam Feuerstein, an insightful author at Stat News, joins the discussion to explore the intriguing world of 'zombie' biotech companies, assessing whether they can be revived or should return capital to investors. He delves into Stoke's collaboration with Biogen and highlights promising gene therapy data for Duchenne muscular dystrophy. The conversation also touches on ethical concerns in biotech fundraising, the challenges faced by Bluebird Bios, and potential mergers like SpringWorks with Merck KGaA, revealing shifting landscapes in the industry.
59:01

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

  • The rise of 'zombie' biotech companies, trading below their cash value, sparks debates on their potential revival or necessity to return capital to investors.
  • Effective leadership and intensive management focus are vital for navigating challenges in struggling biotech firms, impacting their chances of recovery.

Deep dives

The State of Zombie Biotechs

Zombie biotechs refer to companies with a negative enterprise value, where their assets are valued less than their cash reserves. This phenomenon is prevalent, with approximately 200 of the 700 public biotech companies classified as such. Many of these companies face significant challenges due to clinical setbacks and pipeline failures, sparking debates about their continued existence. Investors are often torn between the potential for these companies to turn around and the desire to see their cash returned to shareholders in more productive ways.

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