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LYIN’ DON is bad for biotech [1]
['This Content Is Not Subject To Review Daily Kos Staff Prior To Publication.']
Date: 2025-09-03
LYIN’ DON was supposed to be good for business. In fact, because of the administration’s policies Biotech funding is falling off a cliff. “Jefferies analysts found biotech funding in May was down 57%, to just over $2.7 billion, compared to the same time last year. That sum was only slightly better than the nearly $2.6 billion raised in April…”
Why is this happening?
The reasons fall into two categories, those that are KNOWN to be bad for the industry and those that REMOVE ALL REMAINING PREDICTABILITY from an industry that was difficult to predict before.
Craziness at FDA. Product development times in biotech extend to 12-15 years. Funding cuts and other changes, both announced and suspected, at US-FDA and the CDC have rendered business projections futile. Biotech companies have faced delays in meetings with FDA to get their drugs and devices approved. FDA is unpredictable because RFK Jr doesn’t understand science. He doesn’t believe in the Germ Theory of Disease! Nobody knows what his brainworm will tell him to do next.
Tariffs are unpredictable. LYIN’ DON slaps on a tariff, then TACOs it, and who knows how long it will last. He’s like a wind sock. 50% of biotech companies expect that tariffs on the EU will force them to find new research and manufacturing sources. The same number said that EU duties will cause them to change regulatory filings overseas.
NIH funding cuts. Many biotech start-ups rely on NIH grants. When that money disappears or cannot be relied upon, stock values plummet and high paying jobs vanish.
Biotech companies get funding because investors believe that they can take CALCULATED RISKS about future paybacks. If the level of predictability drops to zero, as it has with this administration, investors look elsewhere.
What is the impact of all this chaos?
For the moment, the fall-out is only on the investors in the biotech industry and the scientists who work for them. For the investors life isn’t so bad. Instead of becoming billionaires, they’ll remain millionaires. For the scientists, it’s hard and many of them will leave the country.
Biotech had $621 Billion in sales in 2024 and was expected to grow at a 12.5% annual rate. That growth will be certainly be less, if it grows at all.
Long term, the impact on the rest of us will be devastating. Medical progress will slow to a crawl. US leadership in medical innovation will be ceded to Europe and China.
LYIN’ DON’s administration, which was supposed to be good for business, is destroying the biotech business, and along with it, our future health.
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