16 San Francisco biopharma companies could be negatively impacted by Inflation Reduction Act drug provision

Apr 22, 2024

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A provision of the “Inflation Reduction Act” (IRA) could threaten investments in “small molecule” drug development, said the head of the Pasadena-based Pacific Research Institute (PRI).

There are currently up to 16 San Francisco biopharma companies involved in that type of drug development, according to Biopharmguy.com.

PRI President Sally Pipes told South SFV Today on Feb 26 that a so-called “small molecule penalty” in the Inflation IRA will “have an outsized impact on our efforts to development treatments for cancer.”

Pipes said that the announcement by Stanford Researchers in December that they had discovered an “on/off switch” for breast cancer is but one example of a “small molecule” drug innovation.

The IRA, signed into law by President Joe Biden (D) in 2022, contains a drug provision in which the brand-name drugs for which Medicare “negotiates” prices are split into two categories: small-molecule drugs and biologics.

The IRA makes small-molecule drugs eligible for “negotiation” nine years after their approval, compared to a 13-year exemption period for biologics.

“While both small-molecule drugs and biologics are essential for cancer treatment, small-molecule drugs are the only way to target some forms of breast, lung, colon, and other cancers,” she said.

An October 2023 paper, authored by University of Chicago economists, said that the IRA small molecule provision will result in “188 fewer small molecule treatments, including 79 fewer new small molecule drugs and 109 fewer post-approval indications for these drugs.”

How many California biopharma companies are involved in “small molecule” drug development?

Source: Biopharmguy.com

Company	City/Town	Type of Drug Development
Hinge Therapeutics	CA – Sunnyvale	AI Small Molecule Drug Discovery
Peak Bio	CA – Palo Alto	Antibody-Drug Conjugates, Small Molecules
Tracon Pharmaceuticals	CA – San Diego	Biologics, Small Molecules
FibroGen	CA – San Francisco	Biologics, Small Molecules
Healis Therapeutics	CA – Newport Beach	Botox Neuro Treatment
Kairos Pharma	CA – Los Angeles	Cell Therapy, Antibodies, Small Molecules
Alion Pharmaceuticals	CA – Menlo Park	Chemistry services, small molecules
Totus Medicines	CA – Emeryville	Covalent Small Molecules
Terremoto Biosciences	CA – San Francisco	Covalent Small Molecules
Anagenex	CA – San Francisco	Directed Evolution Platform for Small Molecule Discovery
Alexza Pharmaceuticals	CA – South SF	Drug Delivery, Small Molecule
GRI Bio	CA – La Jolla	Liver Disease Small Molecule
Pragma Bio	CA – San Francisco	Microbial-derived small molecules
Aridis Pharmaceuticals	CA – Los Gatos	Monoclonal Antibody & Small Molecule Targeting Infectious Diseases
Azora Therapeutics	CA – Los Angeles	Novel small molecule new chemical entities for the treatment of autoimmune, inflammatory diseases
Allegro Ophthalmics	CA – San Juan Capistrano	Ophthalmic Small Molecules
Deep Apple Therapeutics	CA – San Francisco	Oral small molecule
Structure Therapeutics	CA – South SF	Oral small molecule drugs that can deliver biologic-like activity and specificity
Belite Bio	CA – San Diego	Oral Small Molecules
Zenith Epigenetics	CA – San Francisco	Orally-active small molecules
Venquis Therapeutics	CA – San Diego	Protein Degradation Small Molecules
Regen BioPharma	CA – La Mesa	Regenerative Medicine, Cell Therapy, Small Molecule
Geron	CA – Foster City	Small Molecule
Gaba Therapeutics	CA – Newport Beach	Small Molecule
MetVital	CA – San Diego	Small Molecule
WinSanTor	CA – San Diego	Small Molecule
CHS Pharma	CA – San Francisco	Small Molecule
Epiodyne	CA – San Francisco	Small Molecule
Nura Bio	CA – South SF	Small Molecule
Via Nova Therapeutics	CA – Oakland	Small Molecule Antivirals
Prosetta Biosciences	CA – San Francisco	Small Molecule antivirals
Assembly Biosciences	CA – South SF	Small Molecule Antivirals
AmbAgon Therapeutics	CA – South SF	Small molecule cancer drugs that stabilize the direct interaction of oncogenic proteins with the 14-3-3 class of adaptor proteins
Mercaptor Discoveries	CA – Novato	Small Molecule Captons
Cystetic Medicines	CA – San Carlos	Small molecule channels that serve as molecular prosthetics for missing or dysfunctional CFTR protein
DICE Therapeutics	CA – South SF	Small molecule compounds that act by unlocking protein-protein interfaces
Denovicon Therapeutics	CA – La Jolla	Small Molecule Discovery
Orphagen Pharmaceuticals	CA – San Diego	Small molecule discovery
Carmot Therapeutics	CA – Berkeley	Small Molecule Drug Discovery
BlossomHill Therapeutics	CA – San Diego	Small Molecule Drug Discovery
Belharra Therapeutics	CA – San Diego	Small molecule drugs in oncology, immuno-oncology, autoimmune and neurodegenerative diseases
Contineum Therapeutics	CA – San Diego	Small Molecule for MS
Neurocentria	CA – Walnut Creek	Small molecule for neurological disorders
Lighthouse Pharmaceuticals	CA – San Francisco	Small molecule protease inhibitors
QED Therapeutics	CA – San Francisco	Small Molecule Targeting Tyrosine Kinase Receptors
Avenzoar Pharmaceuticals	CA – Encinitas	Small molecule therapeutics for cancer
Soleno Therapeutics	CA – Redwood City	Small Molecule, Carbon Monoxide Monitoring Device
Takeda	CA – San Diego	Small Molecule, Enzymes
Exelixis	CA – Alameda	Small Molecules
Clinuvel Pharmaceuticals	CA – Burlingame	Small Molecules
Zenshine Pharmaceuticals	CA – Burlingame	Small Molecules
VIVUS	CA – Campbell	Small Molecules
Agastiya Biotech	CA – Carlsbad	Small Molecules
Palisade Bio	CA – Carlsbad	Small Molecules
Reviva Pharmaceuticals	CA – Cupertino	Small Molecules
ARIZ Precision Medicine	CA – Davis	Small Molecules
Octant Biotech	CA – Emeryville	Small Molecules
Gilead	CA – Foster City	Small Molecules
Mirum Pharmaceuticals	CA – Foster City	Small Molecules
Bausch Health	CA – Irvine	Small Molecules
CalciMedica	CA – La Jolla	Small Molecules
MediciNova	CA – La Jolla	Small Molecules
Immix Biopharma	CA – Los Angeles	Small Molecules
MAX BioPharma	CA – Los Angeles	Small Molecules
Xoc Pharmaceuticals	CA – Los Gatos	Small Molecules
Aluda Pharmaceuticals	CA – Menlo Park	Small Molecules
Corcept Therapeutics	CA – Menlo Park	Small Molecules
Escend Pharmaceuticals	CA – Menlo Park	Small Molecules
Collaborative Medicinal Development	CA – Mill Valley	Small Molecules
Advenchen Laboratories	CA – Moorpark	Small Molecules
Astraea Therapeutics	CA – Mountain View	Small Molecules
CymaBay Therapeutics	CA – Newark	Small Molecules
Rain Oncology	CA – Newark	Small Molecules
Gilead	CA – Oceanside	Small Molecules
Halo Biosciences	CA – Palo Alto	Small Molecules
Jazz Pharmaceuticals	CA – Palo Alto	Small Molecules
Nalo Therapeutics	CA – Palo Alto	Small Molecules
Vincerx Pharma	CA – Palo Alto	Small Molecules
Zai Lab	CA – Palo Alto	Small Molecules
Astex Pharmaceuticals	CA – Pleasanton	Small Molecules
Xynomic Pharmaceuticals	CA – Poway	Small Molecules
AfaSci	CA – Redwood City	Small Molecules
LifeMax	CA – Redwood City	Small molecules
REVOLUTION Medicines	CA – Redwood City	Small Molecules
CuraSen Therapeutics	CA – San Carlos	Small Molecules
Acadia Pharmaceuticals	CA – San Diego	Small Molecules
BioTheryX	CA – San Diego	Small Molecules
Crinetics Pharmaceuticals	CA – San Diego	Small Molecules
Gossamer Bio	CA – San Diego	Small Molecules
Intercept Pharmaceuticals	CA – San Diego	Small Molecules
Kinnate Biopharma	CA – San Diego	Small Molecules
Kura Oncology	CA – San Diego	Small Molecules
MEI Pharma	CA – San Diego	Small Molecules
Neurocrine Biosciences	CA – San Diego	Small Molecules
NovoMedix	CA – San Diego	Small molecules
PHusis Therapeutics	CA – San Diego	Small Molecules
Vertex	CA – San Diego	Small Molecules
Vivreon Biosciences	CA – San Diego	Small Molecules
Zentalis Pharmaceuticals	CA – San Diego	Small Molecules
ResVerlogiX	CA – San Francisco	Small Molecules
Fochon Pharma	CA – San Leandro	Small Molecules
eFFECTOR Therapeutics	CA – Solana Beach	Small Molecules
Sentynl Therapeutics	CA – Solana Beach	Small Molecules
Cytokinetics	CA – South SF	Small Molecules
Rigel Pharmaceuticals	CA – South SF	Small Molecules
Theravance Biopharma	CA – South SF	Small Molecules
Titan Pharmaceuticals	CA – South SF	Small Molecules
Senju Pharmaceutical	CA – Torrance	Small Molecules
Aeovian Pharmaceuticals	CA – Walnut Creek	Small Molecules
Terns Pharmaceuticals	CA – Foster City	Small Molecules – Liver focus
Biosplice Therapeutics	CA – San Diego	Small Molecules Acting on Stem Cells
Teon Therapeutics	CA – Redwood City	Small molecules focused on GPCR targets for oncology indications
AmyriAD Therapeutics	CA – Los Angeles	Small Molecules for Alzheimer’s
Tosk	CA – Mountain View	Small Molecules for Cancer
Dermavant Sciences	CA – Long Beach	Small Molecules for Dermatology Indications
Origami Therapeutics	CA – San Diego	Small Molecules for Genetic Diseases
Tempest Therapeutics	CA – Brisbane	Small Molecules for Immuno-Oncology
Altay Therapeutics	CA – San Francisco	Small molecules for liver disease and cancer
Nine Square Therapeutics	CA – South SF	Small Molecules for Neuro
PharmatrophiX	CA – Menlo Park	Small Molecules for Neurodegenerative and other areas
Libra Therapeutics	CA – San Diego	Small Molecules for Neurodegenerative Indications
Modulo Bio	CA – San Diego	Small Molecules for Neurological Conditions
Neuropore Therapies	CA – San Diego	Small molecules for neurological conditions
Primmune Therapeutics	CA – Carlsbad	Small Molecules for Oncology
Senhwa Biosciences	CA – San Diego	Small Molecules for oncology
DMK Pharmaceuticals	CA – San Diego	Small Molecules for Substance Abuse
Biomea Fusion	CA – Redwood City	Small Molecules Targeting Cancer
Plexium	CA – San Diego	Small Molecules Targeting E3 Ligase
Quanta Therapeutics	CA – South SF	Small Molecules Targeting RAS-driven Cancers
Atropos Therapeutics	CA – San Carlos	Small Molecules Targeting Senescence
Navire Pharma	CA – San Francisco	Small Molecules Targeting SHP2
BridGene Biosciences	CA – San Jose	Small molecules that drug traditionally undruggable targets
Edison Oncology	CA – Menlo Park	Small Molecules, 505(b)(2)
pH Pharma	CA – South SF	Small Molecules, ADCs
Atengen	CA – Los Angeles	Small Molecules, Antibody Therapies
Ultragenyx Pharmaceutical	CA – Brisbane	Small Molecules, Biologics
AbbVie	CA – Irvine	Small Molecules, Biologics
Genentech	CA – Oceanside	Small Molecules, Biologics
Bristol Myers Squibb	CA – Redwood City	Small Molecules, Biologics
Bristol Myers Squibb	CA – San Diego	Small Molecules, Biologics
Janssen Pharmaceuticals	CA – San Diego	Small Molecules, Biologics
Odyssey Therapeutics (2)	CA – San Diego	Small Molecules, Biologics
Nektar Therapeutics	CA – San Francisco	Small Molecules, Biologics
Amgen	CA – South SF	Small Molecules, Biologics
Genentech	CA – South SF	Small Molecules, Biologics
Janssen Pharmaceuticals	CA – South SF	Small Molecules, Biologics
Amgen	CA – Thousand Oaks	Small Molecules, Biologics
Genentech	CA – Vacaville	Small Molecules, Biologics
Ultragenyx Pharmaceutical	CA – Novato	Small Molecules, Biologics, Gene Therapy, mRNA, Antisense Oligo
LadRx	CA – Los Angeles	Small Molecules, DNA
Maze Therapeutics	CA – South SF	Small Molecules, Gene Therapy, Antisense Oligonucleotides, Biologics
BeiGene	CA – Emeryville	Small Molecules, Monoclonal Antibodies
BCN Biosciences	CA – Pasadena	Small Molecules, Monoclonal Antibodies
Cidara Therapeutics	CA – San Diego	Small molecules, peptide
Medikine	CA – San Diego	Small Molecules, Peptide
Nurix Therapeutics	CA – San Francisco	Small Molecules, Protein Degradation
Novartis	CA – San Diego	Small Molecules, Vaccines, Biologics
AstraZeneca	CA – South SF	Small Molecules, Vaccines, Biologics
Merck	CA – South SF	Small Molecules, Vaccines, Biologics
Indi Molecular	CA – Los Angeles	Small synthetic molecule replacement for antibody-based therapeutics
f5 Therapeutics	CA – San Diego	Small-molecule, targeted protein degraders
Mirati Therapeutics	CA – San Diego	Targeted Oncology Company; Small Molecules