BioCentury This Week Ep. 277 - Asia's NewCo Model, FDA Tipping Point, Vertex's Pain Drug
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Feb 4, 2025 A surge in Western companies tapping into Asian biotech assets highlights a new model of innovation emerging in the region. Discussed are key players and the shift in investment toward autoimmune diseases. Concerns about significant staff reductions at the FDA may hamper drug approvals, posing a threat to the regulatory landscape. Additionally, Vertex's new pain therapy is examined, showcasing challenges in commercialization amid a saturated market. This expansion into pain management marks an exciting step beyond their cystic fibrosis focus.
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The "NewCo" Model
- Western companies are increasingly launching new ventures based on assets from China, signaling China's rapid innovation.
- This "NewCo" model involves establishing new companies in the West using assets sourced from Asia, predominantly China.
De-risked Investment
- Most NewCo model companies possess clinical data, often in different indications, which de-risks investment for Western investors.
- The model demonstrates high-quality, de-risked assets emerging from China, attracting US investors despite available domestic options.
Shifting Focus
- NewCo deals initially focused on cancer and antibody modalities, but are now expanding to autoimmune diseases.
- The shift in focus reflects broader industry trends and China's evolving biotech landscape.