Lilly’s manufacturing bet

Big Pharma and Chinese drugmakers are becoming ever more intertwined. 

Eli Lilly announced this month it’s newly investing $3 billion into manufacturing capabilities in China to bolster production of its oral drugs, including its new weight loss pill. As part of the 10-year plan, Lilly is lining up local partners including Pharmaron, a Beijing-based contract manufacturer. 

Licensing deals with China-based biotechs have also been rising at a steady clip, hitting record-breaking levels last year as Big Pharma seeks new pipeline assets. But the days of bargain hunting in China could be numbered. This week, we looked at just how high valuations have risen among Chinese drugmakers.

Bayer’s military ties

Ever since Bayer acquired agriculture giant Monsanto in 2018, the newly formed conglomerate has faced a litany of legal challenges connected with the weed killer Roundup that allegedly caused cancer. As massive as that liability is, Roundup is also drawing major attention as the U.S. becomes entrenched in another Middle East conflict.

An executive order from President Donald Trump has demanded a continued supply of white phosphorous — an ingredient in Roundup — for military tools and weapons. Germany’s Bayer operates the only manufacturing plant in the U.S. that makes white phosphorous, and unnamed officials told The New York Times that recent military actions led Trump to consider Bayer’s operations a national security priority.

As the U.S. draws on Bayer’s capabilities to fuel its military-industrial complex, the company is preparing to face the Supreme Court this spring over health risks associated with the weed killer. This week, we explored what the legal fallout could mean for Bayer as it looks to revitalize its pharma operations.

Biotech’s return to form

Early-stage investors play an important role in biotech, placing bets on young companies and budding technologies. Over the last few years, still recovering from the biotech bubble’s long enduring effects, early-stage VCs like Santé Ventures have taken fewer risks but look forward to the thaw to come, according to managing director Omar Khalil.

“Biotech has great upside potential but is highly correlated to vintage years,” Khalil said. “Certain years will have tremendous returns and others you just know are more challenged — but the pendulum always swings back.”

This week, we featured a conversation with Khalil about early signs the biotech market is returning to form, even if the landscape looks a little different from the bubble five years ago — and why that could be a good thing. We also looked at a judge’s recent ruling against HHS changes to vaccine policies under Robert F. Kennedy Jr.