Healthcare and Pharmaceutical Sector
The U.S. healthcare sector faces sweeping regulatory and policy shifts, including a new executive order mandating the splitting of the MMR vaccine and the termination of federal funding for youth gender-affirming care. Concurrently, biotech firms secured substantial funding, with Vaderis raising $152M for Phase 3 trials and Epicrispr securing $90M for muscle-building rare disease treatments. Meanwhile, the FDA closed a long-standing loophole by requiring food makers to report new additives.
Donald Trump signed an executive order on Monday demanding that the combined measles, mumps, and rubella vaccine be split into three separate shots. The directive aims to reduce the total number of pediatric immunizations, but the policy would paradoxically increase a child's required shots from two doses to six. Individual vaccines for measles, mumps, and rubella do not currently exist in the United States, meaning pharmaceutical companies would have to fund entirely new development, testing, and regulatory processes. Drugmakers like Merck and GSK face strong disincentives to pursue the pivot, as standalone shots would require years of trials and capital without any scientific justification. PhRMA and the American Academy of Pediatrics immediately condemned the order, warning it will strain healthcare access, complicate logistics, and further erode vaccination rates.
The Trump administration directed the Centers for Medicare and Medicaid Services to end federal funding for gender-affirming surgeries and hormone treatments for transgender minors under Medicaid and the Children's Health Insurance Program. The policy, taking effect October 13, phases out coverage for hormone treatments currently received by youth as of April 2027 while keeping mental health services funded. At least 27 states have already banned youth gender-affirming care. Major medical organizations support the treatments, whereas LGBTQ+ advocates and organizations like the Human Rights Campaign stated the rule will face legal challenges.
Epicrispr Biotechnologies raised $90 million in Series C funding on the strength of early clinical data showing that its epigenetic editing approach can build muscle in patients with facioscapulohumeral muscular dystrophy, a rare genetic disease with no approved treatments. The drug, EPI-321, works by silencing a toxic gene called DUX4 without cutting DNA—a distinction that matters. Instead of rewriting the genetic code, epigenetic editing uses CRISPR tools to flip a chemical switch that turns gene expression up or down. In FSHD, DUX4 overexpression drives muscle atrophy; EPI-321 binds to the gene and chemically suppresses the protein it makes. In a small early-stage trial, three patients who received a single IV infusion gained between 0.5 and 1.3 pounds of lean muscle mass over six months, with biological markers supporting DUX4 suppression. The round was co-led by Octagon Capital and Janus Henderson Investors, with backing from Sanofi Ventures, Fidelity Management & Research, and Cormorant Asset Management. Anran Li from Octagon will join the board. Epicrispr has now raised $213 million since inception. The funding arrives as FSHD has become a crowded race. Novartis acquired Avidity Biosciences for $12 billion partly to gain delpacibart braxlosiran, an antibody-oligonucleotide conjugate in phase 3. Sarepta, Scholar Rock, Arrowhead, and Dyne are all testing DUX4-blocking candidates. Epicrispr's epigenetic approach sets it apart—most competitors use gene therapy, antisense, or antibody strategies that directly target the protein or RNA. The company completed enrollment in its phase 1/2 trial and expects six-month follow-up data in early October. The $90 million gives it runway to advance EPI-321 and build out a pipeline of epigenetic medicines.