Episode 135 - March 21, 2025

On this week’s episode, Sam Fazeli, Eric Schmidt, and Brian Skorney are joined by Roivant’s Matthew Gline to discuss data, deals and the latest policy updates. The episode kicks off with concerns over potential U.S. Department of Health and Human Services (HHS) funding cuts for domestic HIV programs, with the group analyzing the impact on companies like Gilead and GSK, whose HIV prevention drugs have driven significant investor enthusiasm. They then discuss the uncertainty surrounding the new administration’s commitment to public health initiates, considering Robert F. Kennedy Jr.’s appointment as HHS Secretary and his past controversial views on vaccines and HIV prevention. The conversation then shifts to data, including positive results from Immunovant and Roivant’s Phase 3 study of batoclimab for myasthenia gravis. The group also examines the surprising absence of short sellers engaging with Roivant post-data release, highlighting shifts in biotech trading strategies. In the muscular dystrophy space, new exon-skipping therapies from Avidity and Dyne show unprecedented dystrophin restoration, suggesting potential functional benefits. However, the tragic death of a patient treated with Sarepta’s gene therapy, Elevidys, reignites concerns about accelerated approvals and the FDA’s risk-benefit calculus in rare disease research. On the deal-making front, AstraZeneca’s $425M acquisition of stealth-mode cell therapy startup EsoBiotec and Sanofi’s $600M deal with Dren Bio underscore biotech’s valuation disconnect, where early-stage private assets command premium prices while public biotechs struggle. The episode closes with insights into Alnylam’s broad label win for Amvuttra in ATTR cardiomyopathy and AstraZeneca’s $2.5B investment in biotech agreements and manufacturing in China, reflecting its long-term strategic vision despite ongoing geopolitical tensions. *This episode aired on March 21, 2025