Records show the US Food and Drug Administration (FDA) approved 50% more novel drugs in 2023 compared to 2022. These numbers could possibly trigger a renewed interest in biotech investments. According to a Reuters report published on the 2 January, 2024, the FDA approves an average of between 45 and 50 new medicines a year. In the past three years, these endorsements seesawed from 51 in 2021 to 37 in 2022 and back up again to 55 in 2023.
Rise in US FDA approvals may signal an upsurge in biotech investments
Some prominent therapeutics were featured in the 2023-approval batch. These included Zepbound, an obesity treatment developed by Eli Lilly and Company (LLY), and Leqembi, an Alzheimer’s drug from Eisai (ESAYI) and Biogen Inc. (BIIB).
On top of the 55 novel drug green lights, the FDA also put its stamp of approval on five gene therapies. One of these is a Vertex Pharmaceuticals Incorporated (VRTX) and CRISPR Therapeutics (CRSP) sickle cell disease treatment using gene editing innovations.
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Reuters indicated the positive reaction from financial circles about the rise in FDA approvals. The newsagent quoted John Stanford, executive director of Incubate, a life sciences investment group, who commented:
It is good to see the FDA approvals go up. Our scientists can do a lot more, and from that perspective, we are excited about what’s coming down the pipeline, not just in 2024, but beyond that.
The approved gene therapies especially tweaked interest investor interest. The FDA mentioned that the number of novel drug approvals depends on many variables, such as developments in science and an understanding of diseases.
