Nordic Life Science 1
FINANCING // GLOBAL REPORT “However, amidst the a
dversity, opportunities emerged for those who were able to adapt and seize them. Both for biotech employers and subject matter experts, new opportunities arose of being intentional and strategic about their next hire or leadership opportunity, respectively.” Krishna Allamneni, EVP and Chief Development Officer, Concarlo Therapeutics folio companies as opposed to starting newcos or syndicating early rounds of funding.” What coping strategies did you see among companies? “To navigate this challenging environment, biotech employed various softer strategies in the early phase of the downturn such as pipeline prioritization, reverse mergers or alternative funding approaches. But as the markets continued to be tough through 2023, and M&As weren’t coming through as fast as they needed to, many had to let people go or file for bankruptcy.” “However, amidst the adversity, opportunities emerged for those who were able to adapt and seize them. Both for biotech employers and subject matter experts, new opportunities arose of being intentional and strategic about their next hire or leadership opportunity, respectively. Many have been proactive in picking up promising projects and talent from companies that did not survive the downturn.” “We at Concarlo were also able to exploit the unexpected opportunity the layoffs have offered to strengthen our bench. The market conditions allowed us to more deliberately focus on our foundational science and value generating data points. By prioritizing project pipeline, hiring highly adaptable talent with diverse expertise, and leveraging strategic business partnerships, successful companies are able to navigate through the tunnel and position themselves for success in the coming quarters. California biotech, especially the San Diego ecosystem, has been able to capitalize on these approaches and position themselves to succeed in 2024, as evident from a steadily expanding listing of biotech jobs.” We are starting to see some signs of recovery in the Nordics now, companies are rehiring. What is the status in California? “While the Nordic region may be experiencing a resurgence in hiring and economic activity, the situation in California's biotech sector has been more nuanced. We've observed a gradual improvement in recent months, particularly driven by the revival of ADCs, weight loss drugs, a renewed interest in the CNS drugs, emergence of psychedelics, continued confidence in immuno-oncology drugs and emerging cell and gene therapy technologies as well as a technological and supply chain successes of radiopharmaceuticals. Companies with assets in these areas had an easier time in raising funds and attracting top talent. "However, the recovery has been slow and uneven, and not all companies with proven leadership and stellar scientific pipeline have seen the same level of success. Nonetheless, there are signs of optimism as the industry continues to adapt and innovate.” NLS NORDICLIFESCIENCE.ORG | 59