How does SEQENS' dual focus address the evolving needs of its clients?
The move towards precision medicine and the increased specialization within the life sciences industry have had a significant impact on our activities.
SEQENS operates across two main areas: catalog product activities, where we provide a broad portfolio of active pharmaceutical ingredients, and custom activities, where we stand as a global leader in CDMO services.
This dual focus requires us to stay at the forefront of science and innovation, particularly as we expand our offerings to include cell and gene therapy. By encompassing a continuum of technologies and solutions, from small molecules to advanced therapies, we aim to meet the evolving needs of our customers in developing new and more effective medicines. This approach not only addresses diseases that affect a limited number of people with potentially more expensive treatments but also represents our commitment to pursuing the most innovative solutions for patient care.
Has SEQENS' expansion into the US and collaboration with biotechs materialized as planned?
Yes, our expansion plans have indeed materialized. Last year, we inaugurated a new R&D service unit in Devon, Massachusetts, specializing in pharmaceutical synthesis to support biotech companies in that region and across the US. This move is a significant step towards growing our business in a key innovation hub like Boston, where we aim to serve our customers with our technical capabilities and expert team.
Furthermore, we have broadened our service scope by acquiring CELLforCURE from Novartis, a state-of-the-art cell and gene therapy manufacturing unit. This acquisition allows us to offer a more comprehensive range of CDMO activities, extending our expertise from small molecules to cell and gene therapy, catering to a global customer base in tackling incurable and life-threatening diseases.
How do you see the future evolution of your focus on biotechs given the current economic challenges in the biotech industry?
Despite the economic downturn affecting the biotech industry, particularly impacting the ability of biotechs to finance their projects, we remain optimistic about the long-term success of the sector. The current investment climate has indeed led to a focus on later-stage clinical trials, such as phase three, due to their higher probability of success. However, we observe a wealth of scientific ideas awaiting advancement beyond early-stage development, pending improved financial conditions. We anticipate a positive shift in investment trends by 2024, with full recovery expected in 2025, driven by ongoing innovation within the life sciences sector and the critical need for advancements in healthcare.
Have you encountered difficulties in attracting clients due to the economic downturn in the biotech sector?
Despite the challenging economic environment, we continue to attract biotech clients, indicating resilience and long-term potential in the industry. The focus has indeed shifted towards more advanced clinical phases, but this reflects a strategic adjustment rather than a decline in innovation or demand for our services. With scientific research progressing, we expect a resurgence of early-stage projects as the financial climate improves. Moreover, the emphasis on innovation is coupled with a need for regulatory support in both the US and Europe to facilitate the development of new medicines, highlighting the importance of CDMO partners like SEQENS in accelerating market entry and industrialization of innovative projects.
Despite the economic headwinds, we observe a robust pipeline of ideas poised for development as soon as funding conditions improve. This strategic patience reflects our confidence in the biotech sector's resilience and future growth. We are optimistic about the industry's recovery, expecting a gradual improvement starting in 2024, leading to a more robust resurgence by 2025.
How is SEQENS addressing the trends toward localization of production and supply chain resilience?
The pandemic underscored the vulnerabilities of global supply chains, especially in critical sectors like pharmaceuticals. In response, there is a growing trend towards relocalizing production of essential drugs to mitigate risks and enhance supply chain resilience. This shift towards local production for local consumption helps defragment the supply chain, ensuring reliability and reducing dependency on distant markets. Our clients are increasingly focused on securing their supply chains, showing a preference for suppliers that can offer localized production capabilities.
Additionally, the push for sustainability has led to a demand for low-carbon active pharmaceutical ingredients (APIs), further encouraging the repatriation of production to regions with stringent environmental regulations, like the US and Europe. This dual focus on reliability and sustainability aligns with our strategic objectives, reinforcing our commitment to supporting our clients through innovative and responsible manufacturing practices.
Do you have plans for expansion into other key biotech hubs, like California, and what are your objectives for the coming years?
As SEQENS continues to explore opportunities within the vibrant life sciences sector, the US presents a significant growth avenue, especially given its leadership in innovative medicine development. Our current presence spans Europe and Asia, indicating a strategic gap in the US, particularly on the West Coast. Recognizing the importance of biotech hubs in California, such as the Bay Area and San Diego, we are actively planning to expand our footprint to these regions. This expansion aligns with our goal to enhance our global presence and better serve innovative medicine development across key geographic locations. Our overarching objectives focus on embracing the immense possibilities within the life sciences sector, prioritizing innovation, and strategically positioning SEQENS to support the development of groundbreaking healthcare solutions.
