Life Sciences Domain Outlook Q2 2024: Understanding the Impact of M&A and Technological Advancements on the Sector

The increased emphasis on the development of vaccines and life-saving drugs led to a massive surge in the life sciences domain during the COVID-19 pandemic. Along with this, recent discoveries and inventions in biological studies and chemistry have also played a huge role in expanding this domain. Moreover, the leading companies and institutions in the sector have established partnerships and collaborations with their peers in order to gain a competitive edge.

Also, many businesses have signed M&A agreements to increase their footprint in the domain. All these strategic alliances have benefited not only the parties involved but also the entire sector. Many such partnerships have been established in the second quarter of 2024 which have created favorable conditions for the growth of the landscape.

Mergers and acquisitions helping industry players to increase their revenue share

In June 2024, UST, an IT consultancy headquartered in Orange County, California, announced the acquisition of Endeavor Consulting Group, a leading player in the healthcare supply chain management market. The CEO of Endeavor Consulting Group was quoted saying that the acquisition will help both parties pool their resources and scale their operations globally in the coming period. This is UST’s third acquisition in recent times; it acquired Prodigy Labs and MobileComm last year.

Transforming the life sciences domain with stunning innovations and partnerships

The life sciences domain is highly dynamic with several companies competing for supremacy. In this effort, many businesses have built partnerships with other enterprises to establish a firm footing in the sector.

In May 2024, Gilead Sciences, a major company in the oncology-cancer drugs landscape, announced that it would be paying a sum of $20 million to Cartography Biosciences to become a part of its advanced cancer medicine expedition. Cartography Biosciences is a US-based precision therapeutics firm specializing in cancer research. As part of this partnership, Gilead Science will get access to Cartography’s computational genomics platform, which will aid the company in continuing its research in breast cancer and non-small cell lung cancer. The collaboration between these two companies will enable them to channel their resources and funds into achieving their common goal of cancer research.

In May 2024, Pager Inc., a digital health industry player, announced that it had signed a partnership agreement with AXA Partners Mexico (APM), an emergency assistance service provider. As part of this collaboration, AXA Partners Mexico will be able to make use of digital healthcare services and offer its health assistance programs via its platform. Thus, the partnership is anticipated to go a long way in helping the companies expand their customer base globally.

In June 2024, the Department of Health of Abu Dhabi Emirate announced that it signed a Memorandum of Understanding (MoU) with AstraZeneca, a research-based biotechnology company. The deal between these two factions was signed at the BIO International Convention 2024, the world’s largest event in the field of biotechnology. As part of this MoU, AstraZeneca will establish a state-of-the-art Rare Diseases Centre of Excellence in Abu Dhabi which will focus on improving the living standards of people affected by rare diseases.

Ingenious product and service launches by leading companies expanding the sector’s scope

Almost all the major biotechnology companies have invested heavily in R&D activities to develop new drugs and medications for a wide range of diseases and ailments. Along with this, with the advent of advanced technologies, many healthcare institutions have launched digital medical services to cater to the demands of the public efficiently.

In April 2024, the US Food and Drug Administration granted its approval to Tovorafenib for treating pediatric low-grade glioma. Tovorafenib is an investigational type of oral drug that targets the key enzyme in the MAPK signaling pathway. The FDA released a statement saying that the approval was given based on the findings of the second phase of the FIREFLY-1 trial which was published in the Nature Medicine journal. The approval is anticipated to bring in new opportunities in the brain tumor drug market in the coming period.

In April 2024, the US FDA approved the use of trastuzumab-strf (Hercessi), a biosimilar drug developed to treat HER2-overexpressing breast cancer and gastroesophageal junction adenocarcinoma. The FDA approval was granted based on the preclinical and clinical data obtained from the three studies conducted since 2015 which tested the pharmacokinetic comparability of the drug, along with its safety and efficacy. While the 150 mg dosage of trastuzumab-strf has been approved, the 420 mg version of the drug is yet to be approved by the FDA.

In April 2024, the biologics license application of datopotamab deruxtecan, an antibody-drug conjugate, received FDA approval following the successful phase 3 TROPION-Breast01 trial. The drug has been developed for the treatment of patients suffering from metastatic or unresectable hormone receptor breast cancer. AstraZeneca released a statement saying that the approval has made it possible for the company to design a treatment plan that moves away from conventional chemotherapy.

Technological advancements and trends revolutionizing the life science domain

In the past few years, technological advancements have played a huge role in helping the life science domain reinvent and align itself to the evolving needs of the global economy. These recent developments have opened a wide range of investment opportunities for the businesses operating in this sector.

In April 2024, a group of engineers from Rice University in Houston, Texas developed the smallest ever implantable brain stimulator specially designed to treat drug-resistant depression and other psychiatric conditions. Charged up using magnetoelectric power transfer technology, this device offers a less invasive alternative to other brain-computer interfaces (BCIs). Tests have shown that the device can activate the motor cortex of the patient, enabling them to move their hand.

Recently, in May 2024, the Heart Rhythm Society (HRS), a non-profit organization based in the US, published the findings of three new studies that were commissioned to illustrate the efficacy and safety of pulsed-field ablation in case of patients suffering from atrial fibrillation (AF). The studies have concluded that pulsed field ablation is an effective treatment for atrial fibrillation and has no side effects as those shown by antiarrhythmic drugs. The studies have also pointed out the fact that recent advancements in catheter design are expected to improve the revenue share of this technology in the tumor ablation industry.

In June 2024, Jingyue Ju, a leading researcher at the University of Columbia, received a patent for his study on the synthesis of disulfide linker-based nucleotides for DNA sequencing. The patent was originally filed in July 2021 and was being reviewed by the expert committee of Columbia University. This new DNA sequencing method is predicted to play a major role in future biological and medical research, especially in the development of personalized medicine.

Notable developments and trends optimizing the growth of the life sciences domain

Apart from mergers and acquisitions, product launches, and technological advancements, many other developments have taken place in Q2 2024 that have positively impacted the sector.

For example, in April 2024, the US FDA approved the use of ciltacabtagene autoleucel, i.e., cilta-cel, for the treatment of patients suffering from R/R multiple myeloma. The approval for cilta-cel has been given to patients who have previously undergone a minimum of four prior sessions of therapy. The US FDA released a statement saying that the approval was given based on data obtained from the phase 3 trials CARTITUDE-4 study.

In April 2024, ImmunityBio, a major biotechnology company, announced that its IL-15 agonist immunotherapy for non-muscle invasive bladder cancer, ANKTIVA, received approval from the US FDA. ImmunityBio, in its press release, stated that the approval will help the company speed up the production processes and its aim is to make the drug available to medical institutions by mid-May 2024. The drug has received a lot of acclaim as it offers a novel approach to treating bladder cancer and sets a new standard in the field of cancer treatment.

In May 2024, XOLREMDI (mavorixafor), a selective CXC chemokine receptor 4, received FDA approval for use in the treatment of WHIM syndrome. The drug, which has been developed by X4 Pharmaceuticals, was designated as an orphan drug by the FDA in 2018. The approval has now been granted on the basis of the 4WHIM Phase III clinical trial. The company released a statement saying that it will speed up the mass production process in the coming period to address the demands of the medical sector.

Summarizing the rise of the life sciences domain in Q2 2024

Allied Market Research, in its industry outlook study, has highlighted the role of mergers, acquisitions, partnerships, and technological advancements in the growth of the sector in the second quarter of 2024. The study also states that the competitive spirit shown by the leading companies in the domain has had a major impact on its expansion. Furthermore, the increasing integration of innovative technologies such as artificial intelligence, machine learning, and big data analysis is predicted to generate new avenues of growth in the years to come.

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