Healthcare & Life Sciences News & Trends: Oct Week 3

1. Trends

i. Medical Tourism, Biopharma Drive China’s Healthcare Flows to ASEAN

China’s healthcare flows into ASEAN are increasingly dominated by medical tourism and biopharmaceuticals. Many Chinese patients seek care in countries like Thailand, Malaysia, and Singapore, drawn by the reputation of these destinations for advanced medical facilities and specialised services. The biopharma sector is also evolving, with China looking to integrate its pharmaceutical market into ASEAN.

Takeaway: The demand for high-quality healthcare services and affordable treatments drives this trend. The integration of China’s pharmaceutical market into ASEAN is expected to be facilitated by China’s Belt and Road Initiative, which aims to enhance trade relations and regional investments. Chinese biopharmaceutical companies are exploring partnerships with local firms to expand their reach and leverage ASEAN’s diverse healthcare markets. These present significant growth prospects for China and Southeast Asia in medical tourism and biopharmaceutical manufacturing.

2. Business Moves

i. Biofourmis Founder Launches AI Health Startup

OutcomesAI has partnered with SingHealth to implement its AI model, Glia, in healthcare settings. This model combines information from images, audio, and video. It aims to reduce nurses’ administrative workload by nearly 50% by automating tasks like chart reviews and patient check-ins. Glia has received multiple nursing and medical certifications and is currently being integrated into the National Heart Centre and National Cancer Centre. OutcomesAI is also developing an AI agent for patient interactions to streamline care coordination in multiple languages. The startup is founded by Biofourmis founder Kuldeep Singh Rajput.

ii. Germany’s Merck Keen to Pursue M&As for its Life Science Division

Merck is open to pursuing additional mergers and acquisitions (M&A) for its Life Science division. The company recently announced its intention to acquire Mirus Bio for US$600 million. The company also plans to increase in-licensing of drug candidates in its Healthcare division. It revised its Healthcare outlook to “slight growth” due to pipeline setbacks in cancer and multiple sclerosis drugs. Its annual organic sales growth forecast for the Life Science sector was also adjusted to 7-9%, down from 7-10%. In contrast, the electronics division’s mid-term growth outlook was raised to 5-9%, driven by demand for AI-related chips.

iii. Pfizer Inks Deal with Triana for Molecular Glues

Pfizer is committing $49 million upfront for a partnership with Triana Biomedicines to discover molecular glue degraders for cancer and other diseases. Triana will utilise its discovery platform and in return, could earn over $1.5 billion in potential milestones and tiered royalties. Specific disease targets were not detailed.

Takeaway: Pfizer joins the trend of investments in molecular glue technologies, which has also garnered significant interest from other major pharmaceutical companies. For instance, Bristol Myers Squibb, Merck, and Roche, have also recently engaged in similar partnerships.

iv. Banks and Private Credit Firms Jostle for $5b Bausch + Lomb Funding

Banks and private credit firms are competing to provide over $5 billion in debt financing to fund a potential buyout of Bausch + Lomb. Private equity firms TPG and Blackstone are reportedly working on a joint bid for the eye care company, which could value Bausch + Lomb at $10 billion, including debt. However, there’s no guarantee that a deal will be finalised.

Takeaway: High borrowing costs have complicated leveraged buyouts, slowing private equity activity. High interest rates may challenge its execution, but if the deal takes place, the potential acquisition of Bausch + Lomb could be one of the largest recent deals.

v. Wave’s Trial Achieves First-Ever Success with Human RNA Editing

Wave Life Sciences reported its first successful therapeutic RNA editing in humans. This milestone is linked to their GSK-partnered drug candidate, WVE-006, currently in a phase 1b/2a study for alpha-1 antitrypsin deficiency (AATD). Wave’s stock surged 63% after the announcement, reaching nearly $14. WVE-006 is designed to correct a mutation in mRNA that causes misfolding of the AAT protein. The treatment also showed promising results in inhibiting neutrophil elastase, an enzyme harmful to lung function.

Takeaway: Nonetheless, further validation across more patients is needed before seeking regulatory approval. Wave is working towards sharing multi-dose data next year. GSK, which paid $170 million for global rights to WVE-006, will take over further development with the potential for an additional $525 million in milestone payments.

Discover More Industry Trends with JC

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Image Credits:

• CGS International
• Endpoints News