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Biotech Bulls & Breakthroughs

Ep. 5: Biotech Trends and Insights: Rare Diseases, Patent Expirations, ESMO25 and Sheff's Watchlist | Biotech Bulls & Breakthroughs Podcast

51 min episode · 2 min read

Episode

51 min

Read time

2 min

Topics

Investing, Design & UX, Sales & Revenue

AI-Generated Summary

Key Takeaways

  • Rare Disease FDA Transparency: The FDA's newly published five-year archive of Complete Response Letters lets investors identify exactly why drugs failed approval. Combined with the Rare Disease Innovation Hub and orphan drug designation vouchers, small companies now have a clearer regulatory roadmap, reducing the blind-spot risk that previously derailed late-stage rare disease programs.
  • Keytruda Patent Expiration Strategy: Merck projects a revenue drop from $33B in 2028 to $27B in 2029 — roughly 19% — as biosimilars capture 30–40% market share within 12 months of the August 2026 loss of exclusivity. Merck's counter-move is launching a subcutaneous Keytruda formulation, since biosimilar entrants will initially be intravenous only, preserving near-term market share.
  • Conference Catalyst Trading Edge: Presenting data at a named conference — ESMO October 12–19, ASN Kidney Week November 5–9 — gives traders a precise date to position around, unlike vague "Q3/Q4" company guidance. Specific presentation dates allow defined entry and exit planning, reducing the timing uncertainty that makes binary biotech events difficult to trade systematically.
  • Regulatory Communication as Investment Signal: Before taking a position on a company's FDA meeting catalyst, review the prior press release history. Companies like OSTX that have issued consistent FDA communication updates since April signal lower surprise risk. Companies announcing FDA meetings without prior preparatory disclosures carry higher binary risk and warrant smaller or no positions.
  • Trading Stocks Over Options for Catalyst Events: For retail investors trading biotech binary events, equity positions carry fewer variables than options — no expiration date misalignment, no strike price selection, no implied volatility decay. Options add three to four additional decision layers on top of the core catalyst bet, compounding execution errors for investors unfamiliar with derivatives mechanics.

What It Covers

Biotech trader "Chef" and BioPharm Catalyst's John Galliano cover three macro themes — FDA rare disease policy shifts, Keytruda's August 2026 patent expiration, and ESMO 2025 previews — then walk through 20+ specific small-cap biotech catalysts spanning September through December 2025.

Key Questions Answered

  • Rare Disease FDA Transparency: The FDA's newly published five-year archive of Complete Response Letters lets investors identify exactly why drugs failed approval. Combined with the Rare Disease Innovation Hub and orphan drug designation vouchers, small companies now have a clearer regulatory roadmap, reducing the blind-spot risk that previously derailed late-stage rare disease programs.
  • Keytruda Patent Expiration Strategy: Merck projects a revenue drop from $33B in 2028 to $27B in 2029 — roughly 19% — as biosimilars capture 30–40% market share within 12 months of the August 2026 loss of exclusivity. Merck's counter-move is launching a subcutaneous Keytruda formulation, since biosimilar entrants will initially be intravenous only, preserving near-term market share.
  • Conference Catalyst Trading Edge: Presenting data at a named conference — ESMO October 12–19, ASN Kidney Week November 5–9 — gives traders a precise date to position around, unlike vague "Q3/Q4" company guidance. Specific presentation dates allow defined entry and exit planning, reducing the timing uncertainty that makes binary biotech events difficult to trade systematically.
  • Regulatory Communication as Investment Signal: Before taking a position on a company's FDA meeting catalyst, review the prior press release history. Companies like OSTX that have issued consistent FDA communication updates since April signal lower surprise risk. Companies announcing FDA meetings without prior preparatory disclosures carry higher binary risk and warrant smaller or no positions.
  • Trading Stocks Over Options for Catalyst Events: For retail investors trading biotech binary events, equity positions carry fewer variables than options — no expiration date misalignment, no strike price selection, no implied volatility decay. Options add three to four additional decision layers on top of the core catalyst bet, compounding execution errors for investors unfamiliar with derivatives mechanics.

Notable Moment

Guggenheim analysts reportedly spoke with an FDA-connected source confirming that Larimar Therapeutics has fulfilled all required communications for accelerated approval of its Friedreich ataxia drug — a rare disease with zero approved treatments — with OLE study data expected within days of the recording date.

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Episode Transcript

Hi. I'm John Galliano, senior director of BioPharm Catalyst. Hello. I'm Chef, known as Chef Station, a twenty year vet in trading biotech stocks. And this is Biotech Bulls and Breakthroughs. Biopharm Catalyst is not a registered investment advisory firm, and the views on this podcast are not intended to be financial advice. Guests on this podcast may hold the stocks discussed in personal or other investment accounts. This content is for informational purposes only and should not be considered investment advice. Always do your own research before making any investment decisions. If you find the information on this podcast useful and would like more catalyst information, Biopharm Catalyst is your premier resource for catalyst data for over 1,000 publicly traded biotech companies. We track clinical trial based catalysts, everything from IND filings to drug data releases for phase one, two, and three trials to regulatory decisions. Our catalyst calendars are updated as soon as the press release comes out so you can be sure you have the most timely and accurate information to inform your biotech trading. All of our plans come with a seven day free trial, and we frequently run discounts on our platform. So check out www.biopharmcatalyst.com to get started today. After we were recording, I, forgot to mention what date the podcast was for. This is 09/18/2025, biotech bowls of breakthroughs. Good morning, good afternoon, good evening, depending on where you're listening in from. Welcome back to another episode of biotech bowls and breakthroughs. I'm John Galliano, senior director by biopharm catalyst, and we're excited to be joined by, the one and only chef once again, to talk about, you know, the what's going on in the biotech markets and his, his catalyst and, and his watch list. So welcome back, chef. As usual, always a pleasure to have you on. Absolutely. Thank you. It's always a pleasure to be here. Always so much to talk about. I mean Yeah. As as time goes, you know, we just continue to see the market, you know, hitting new highs and doing different things. Well, it's interesting. You know, obviously, XBI XBI trading right around 93, I think it is, if I'm not mistaken, somewhere around there. And, you know, if you if you take a look back to, like, some of the lows that we saw in the in the upper sixties, the seventies, I mean, we've kind of come come a long way. Maybe not quite where we were in 2021 where, you know, we were kind of at, like, January or whatever it was. But, you know, how how are you feeling about where we're at right now? Well, just what you said, I mean, the XBI actually closed almost at 97 today. So it was up it was up three, and Yeah. You know, IBB is up to $1.44. I just feel that there's just a lot of, there's there's a lot of, you know, solid money coming into the market. And they're …

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  • Combined with the Rare Disease Innovation Hub and orphan drug designation vouchers, small companies now have a clearer regulatory roadmap

company

  • Guggenheim analysts reportedly spoke with an FDA-connected source confirming that Larimar Therapeutics has fulfilled all required communications for accelerated approval of its Friedreich ataxia drug
  • Merck projects a revenue drop from $33B in 2028 to $27B in 2029 — roughly 19% — as biosimilars capture 30–40% market share within 12 months of the August 2026 loss of exclusivity.
  • Biotech trader "Chef" and BioPharm Catalyst's John Galliano cover three macro themes

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