Each week we highlight five things affecting the life sciences industry. Here’s the latest.
- According to Reuters, the European Union is set to begin an investigation into China’s medical device procurement practices, concerned that Beijing is unfairly favoring domestic manufacturers.
- The investigation aims to ensure fair and open market conditions and could lead to restrictions on Chinese participation in EU tenders.
- According to the Advanced Medical Technology Association’s recent communication, the group is urging Senate Majority Leader Chuck Schumer to prioritize the restoration of immediate tax deductibility for research and development expenses in any upcoming tax legislation, highlighting its crucial role for small businesses in the medtech sector.
- The 2022 tax changes have shifted the deduction period for R&D expenses from immediate to over five years, posing significant financial challenges for research-intensive startups in the medical technology industry.
- BioSpace reports that the global biologics contract development market is projected to grow from $8.49 billion in 2023 to $18.68 billion by 2033, demonstrating a compound annual growth rate of 8.2%.
- Factors driving this growth include increasing adoption of advanced technologies, rising merger and acquisition activities, and a growing trend of outsourcing R&D by pharmaceutical and biopharmaceutical companies.
- FierceBiotech reports a significant increase in biopharma mergers and acquisitions, with the number of deals doubling in the first quarter of 2024 compared to the same period the previous year.
- The market focus has been particularly strong on biotechs developing new cancer treatments, with major companies actively engaging in deals.
- FierceBiotech highlights the Food and Drug Administration’s establishment of the CDER Center for Clinical Trial Innovation (C3TI), aimed at modernizing and fostering innovation in clinical trial designs.
- The C3TI will serve as a hub for collaboration and communication with trial sponsors and includes a demonstration program to test new trial methodologies.
For more insights in life sciences, check out RSM’s industry outlook.