Overview
During this session, the panelists discussed the potential for life sciences growth under the incoming Trump administration and the Republican-controlled-Congress, as well as opportunities for alignment in interests between the new administration and the industry to leverage innovative technologies. They also debated potential impediments to the life sciences sector, such as the Inflation Reduction Act of 2022 (IRA) and the BIOSECURE Act, and explored the impact of artificial intelligence (AI) and how it can be used to accelerate nationwide patient care gaps and improve current diagnostic technologies.
Session panelists:
- Kazi Helal, PhD, Senior Analyst, Emerging Technology, PitchBook
- Brian Johnson, President, MassMEDIC
- John Maraganore, PhD, Founding CEO, Alnylam Pharmaceuticals, Inc.; CEO and Principal, JMM Innovations, LLC
- Moderator: Kristen O’Brien, Vice President, McDermott+
In Depth
Top takeaways included:
- Advocacy and Alignment Will Play Pivotal Roles for the Life Sciences Industry Under the New Administration. The Trump administration will bring new agency, new health policy leaders, and new priorities (e.g., rural access and chronic conditions). However, strong science fundamentals could continue to play an important role under the new administration. Analogously, statewide leadership changes within life sciences agencies will impact the market on a regional scale. Additionally, the industry may see an increase in private equity life sciences deals while Big Pharma deals will continue to comprise a steady bulk of the venture capital market.
- The IRA’s Impact Remains Uncertain. It is unclear what policies the Trump administration will repeal or significantly change these next four years. The Biden administration’s policies, however, may survive through rebranding or modification. To date, the US Department of Health and Human Services has pushed to move drug negotiation policies forward but will face new opposition and ongoing legal challenges.
- The BIOSECURE Act May Disincentivize US Companies From Using Global Manufacturers for Drug Product Manufacturing. If Congress passes the BIOSECURE Act during its lame duck session, the US government could offer federal funding to life sciences companies that do not contract with “at-risk” biotechnology providers connected to certain foreign countries.
- A Potential Lack in AI Regulation. The United States is experiencing a rapid exodus of medical personnel from hospitals nationwide following COVID-19. In a rectifying attempt to stabilize operational costs and patient care, hospitals can look to deploy AI technologies. Newer AI technologies are being developed to triage patients in hospital emergency rooms and decrease wait times while more readily rendering lifesaving care. Despite the unclear (and seemingly limitless) boundaries surrounding the use and potential of AI on a global scale, AI in life sciences is dependent on future deregulation with necessary oversight. In line with the US’s shift to the Trump administration, however, AI technology may remain in its largely unregulated position unless state and local legislations influence the need for federal regulation.
