Melissa Lee (Host) 00:00.190
joining us now is john flavin founder and CEO of life sciences venture capital firm portal innovations john great to see you
John Flavin (Founder & CEO) 00:06.830
likewise hi melissa happy holidays
Melissa Lee (Host) 00:08.790
hi there we certainly have seen a lot of capital markets activity in the pharma space whether it be deals or partnerships or IPO 's in the smaller biotech side john and i'm wondering if there are a couple themes that will stand out in twenty twenty six whether it be weight loss
Melissa Lee (Host) 00:22.390
or cancer or there are certain areas of focus for you
John Flavin (Founder & CEO) 00:27.030
yeah one area that we really like to look closely at is neuro and you know as you mentioned it's been a really robust year for M and A in twenty twenty five neuro was a big piece of those M and A activities well over a hundred billion dollars and activities still trending in
John Flavin (Founder & CEO) 00:42.950
through today as you pointed out with the sanofi dynavax deal so neuro is an important area and you know some of the companies that have made moves in that direction have been avi J and J earlier this year and i think you'll see a lot more activity so our pipeline which is
John Flavin (Founder & CEO) 00:56.830
earlier stage is really focused around neuro rare disease we think will have a big year next year FDA has shown favorable movements toward protocol adjustments to accelerate developments in this area we like stocks and companies that are focused and taking advantage of those
John Flavin (Founder & CEO) 01:15.550
activities we saw for the first time a not for profit get approval for our rare disease drug here recently and i think that's going to open up the the the opportunity for new kinds of ways to get drugs approved in this very important rare disease space
Melissa Lee (Host) 01:31.430
the more favorable backdrop in general for the industry does that give you more time for your portfolio companies to develop their assets or does it compress the time with with an eye to sort of rushing the exit so to speak
John Flavin (Founder & CEO) 01:44.750
well the effect it has is you know as VC 's invest in companies that have gone on to get acquired they're able to take the windfalls from those transactions and recycle the capital back into earlier stage innovation we saw that here at the end of the year with a few weeks ago
John Flavin (Founder & CEO) 02:01.150
over six billion dollars in follow on deals that were done that activity was certainly made possible through the acceleration of profit taking from the M and A activities that fueled those investments if we look at twenty twenty six for earlier stage companies they have not yet
John Flavin (Founder & CEO) 02:16.790
benefited from that windfall but as the IPO market is expected to open up in the coming year you'll see dollars start to move upstream with a risk profile looking for earlier opportunities in next generation drugs you mentioned obesity that continues to be a very important area
John Flavin (Founder & CEO) 02:33.630
with the news around novo getting approval for the oral obviously that's going to open up new access to patients that don't like to do the injections but you know right on their heels will be lily with an expected approval of their oral drug early next year as well so it'll be
John Flavin (Founder & CEO) 02:47.550
an exciting year for obesity as well
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john is there consensus right now on the street about which which of innovation are poised to break out in twenty six whether that's in cancers or cardio or MS alzheimer's we mentioned weight loss
John Flavin (Founder & CEO) 03:03.760
yeah i well i think you mentioned the big ones there's definitely a bent by the industry toward large unmet needs so cardiometabolic space writ large not just obesity by diabetes areas you know around heart health are are really going to be you know areas of a lot of activity
John Flavin (Founder & CEO) 03:23.080
for deal making as well as big breakthroughs and innovation new technologies like crispr are making more of these cures available cell therapy gene therapy a lot that early scientific work is finally coming to the fore if you look at you know the big AI trade and the rotation
John Flavin (Founder & CEO) 03:41.430
out of the tech stocks into biotech and life sciences certainly AI enabled life sciences companies like tempus focused on diagnostic tools for precision medicine i think we'll continue to get a lot of attention as well so across the board i mean oncology it's always a very
John Flavin (Founder & CEO) 03:57.910
important area looking for new modalities there across a range of different types of drugs that promise to be quite helpful for cancer patients particularly for those with incurable disease today