Silicon Valley Bank and Georgia Biotechs

Dear Members,

The failure of Silicon Valley Bank (SVB) Friday has been a major shock to life sciences companies and the whole ecosystem in Georgia and across the United States. As the second largest bank failure in U.S. history, we know a number of CGHI: Georgia Bio’s member companies are directly affected by this concerning situation. Since Friday, CGHI: Georgia Bio has been monitoring the situation and is in contact with state and federal policymakers.

What We Know

This is an uncertain and evolving situation.

Early Sunday, Treasury Secretary Janet Yellen said there would be no federal bailout. However, later in the day Yellen, Federal Reserve Chair Jerome Powell, and Federal Deposit Insurance Corporation (FDIC) Chairman Martin Gruenberg issued a  joint statement  making clear that depositors will have access to  all  of their money  today  from SVB, not just the FDIC-insured limit of $250,000. The Federal Reserve will create a new Bank Term Funding Program (BTFP) to support liquidity. The statement also said that none of the costs of the intervention will be on customers or taxpayers, rather, losses to the Deposit Insurance Fund will be recouped by a special assessment on banks. Shareholders and unsecured debt holders will not be protected.

SVB senior management has been removed, and the Federal Reserve added it will make additional funding to eligible depository institutions to help assure they can meet depositor needs.

You can find reactions from House Financial Services Committee Chairman McHenry (R-NC)  here , Senate Banking Committee Ranking Member Scott (R-SC)  here , and a joint statement from Senate Banking Committee Chair Brown (D-OH) and House Financial Services Committee Ranking Member Waters (D-CA)  here .

President Biden  addressed  the SVB collapse this morning.

The Treasury Department and the Federal Deposit Insurance Corp.’s top priority is to engineer a sale of the bank. House Speaker Kevin McCarthy (R-CA)  said  that he thinks it is “very possible” to find a buyer for SVB, which he believes would be the “best outcome to move forward and cool the markets.”

“The ecosystem that allows America to develop groundbreaking new medicines is extremely important to our nation and to patients who depend on biotechnology companies,” said Rachel King, BIO’s CEO, in a written statement. “The recent actions by the FDIC, the Federal Reserve, and Treasury to allow SVB depositors to have access to all of their money is a very positive development to mitigate the potential harm to companies that are innovating across healthcare, agriculture, and the bioeconomy. We will continue to monitor the situation and will work closely with regulators to ensure that companies can meet payroll and continue to fund cutting-edge science and the development of treatments and therapies that patients are relying on.”

What’s Next?

CGHI: Georgia Bio is continuing to monitor the situation and if a deal is brokered for the sale of the bank. Treasury and the FDIC seem to have stabilized the situation now. We don’t expect quick legislative action from Congress, though there will likely be congressional hearings around the collapse in the future. We do want to note that this Thursday, Secretary Yellen will appear before the Senate Finance Committee at a previously scheduled  hearing .

We’ll issue more bulletins as information becomes available.

Maria Thacker Goethe

Chief Executive Officer

Center for Global Health Innovation

Catch up quick:  After the collapse of Silicon Valley Bank (SVB) Friday, the U.S. Treasury, Federal Reserve, and Federal Deposit Insurance Corporation (FDIC)  stepped in to fully protect all depositors  and ensure they have access to all of their money starting today, March 13.  

Where to read more:  Bloomberg has  a comprehensive live blog  of recent events, while  STAT News has a deep dive into the impact on the biotech industry.

Why it matters to biotech:  “Nearly half of all U.S. venture-backed technology and life science companies bank with SVB—the 16th largest bank in the country—with a total of $342 billion in client funds and $74 billion in total loans,”  explains Fierce Biotech.

Georgia Life Sciences Urges Protection of Patient Access as Georgia Implements Medicaid Changes

September 14, 2026
Georgia Life Sciences has submitted comments to the Georgia Department of Community Health (DCH) regarding the Georgia Pathways to Coverage program and implementation of new federal Medicaid requirements. As Georgia prepares for these changes, Georgia Life Sciences is urging state leaders to prioritize continuity of care and minimize unnecessary administrative barriers that could delay or disrupt access to medically necessary treatment . This is particularly important for Georgians living with serious, chronic, rare, and medically complex conditions who may rely on ongoing medications, diagnostics, therapies, medical technologies, specialty care, and coordinated treatment plans. Even temporary disruptions in coverage can interrupt care and create additional challenges for patients and families. In its comments, Georgia Life Sciences encouraged DCH to protect continuity of coverage during eligibility and redetermination processes, provide patients and caregivers with clear and timely information, minimize unnecessary administrative burdens, and establish appropriate safeguards when a coverage disruption could interrupt an established course of treatment. “As Georgia implements these new federal requirements, we want to ensure that patients remain at the center of the process,” said Maria Thacker Goethe, MPH, President & CEO of Georgia Life Sciences. “Administrative changes should not become barriers between patients and the care they need. Protecting continuity of care is particularly important for Georgians managing serious and complex health conditions.” Read Georgia Life Sciences’ full comments to DCH here.

White House Fact Sheet: President Donald J. Trump Announces Deal with Nine Additional Pharmaceutical Manufacturers to Lower Drug Prices for Americans

August 31, 2026
The White House, August 31, 2026 - ADVANCING MOST-FAVORED-NATION (MFN) PRICING: Today, President Donald J. Trump announced nine new agreements with pharmaceutical manufacturers to lower prescription drug prices for Americans in line with the lowest prices paid by other developed nations (known as the most-favored-nation, or MFN, price). The agreements bring the total number of pharmaceutical manufacturers with MFN deals to 26, covering 89% of the branded drug market. The nine manufacturers are comprised of mid-sized pharmaceutical companies, including Alcon, Astellas Pharma, BeOne Medicines, BridgeBio, CSL, Kyowa Kirin, Sun Pharma, Teva Pharmaceuticals, and UCB. The agreements reduce prices on drugs that treat numerous costly, chronic, and even rare diseases, including hemophilia, Parkinson’s disease, macular degeneration, glaucoma, liver disease, skin conditions, and various forms of cancer. The agreements will provide every State Medicaid program in the country access to MFN drug prices on products made by the nine companies, resulting in billions of dollars in savings for Americans and continuing President Trump’s historic efforts to strengthen the program for the most vulnerable. The agreements ensure foreign nations can no longer use price controls to freeride on American innovation by guaranteeing MFN prices on all new innovative medicines the nine companies bring to market. Each of these manufacturers has agreed to fundamentally rebalance international drug pricing by providing MFN pricing to American patients. BOLSTERING AMERICA’S PHARMACEUTICAL SUPPLY CHAINS AND RESERVES: These nine pharmaceutical manufacturers committed to invest at least $19.6 billion collectively in U.S. manufacturing in the near term. Additionally, as part of the MFN agreements, several companies are donating active pharmaceutical ingredients for key products to the Strategic Active Pharmaceutical Ingredients Reserve (SAPIR) to reduce reliance on foreign nations and ensure the United States has an adequate supply of such products in the event of an emergency. UCB will contribute 163 tons of levetiracetam, an anticonvulsant used to control and prevent certain types of seizures, to the SAPIR. Sun Pharma will contribute 71.4 tons of clindamycin and 6.75 tons of doxycycline; both antibiotics to treat bacterial infections, to the SAPIR. Teva Pharmaceuticals will contribute 45 metric tons of metronidazole, an antibiotic and antiprotozoal used to treat certain bacterial and parasitic infections, and 4.8 tons of amlodipine, an antihypertensive drug, to the SAPIR. Astellas will contribute 25 kg of tacrolimus, an immunosuppressant used to prevent organ rejection in people who have had organ transplants, to the SAPIR. LOWERING COSTS FOR AMERICANS: President Trump’s decisive and historic actions are lowering drug prices for the American people. Since its February launch, patients have saved more than $700 million on medicines through TrumpRx, including massive discounts on some of the most popular and costly medications used to treat obesity and infertility. In July of 2026, senior citizens without access to GLP-1 coverage to treat obesity gained access for just $50 per month. In the two months since the launch of this program, over 500,000 seniors have saved a total of $216 million dollars on these life-changing medicines. The Council of Economic Advisers estimates the total savings from President Trump’s MFN deals to reach $600 billion over the next decade. DELIVERING ON PROMISES TO PUT AMERICAN PATIENTS FIRST: President Trump is delivering on promises for American patients, accomplishing historic wins that the political establishment did not believe were possible. On May 12, 2025, President Trump signed an Executive Order titled: “Delivering Most-Favored-Nation Prescription Drug Pricing to American Patients” directing the Administration to take numerous actions to bring American drug prices in line with those paid by similar nations. On July 31, 2025, President Trump sent letters to 17 of the leading pharmaceutical manufacturers outlining the steps they must take to bring down the prices of prescription drugs in the United States to match the lowest price offered in other developed nations. There are now MFN deals with each of those leading pharmaceutical manufacturers. On September 30, 2025, President Trump announced the first agreement, with the drug manufacturer Pfizer, to bring MFN prices to American patients. On December 1, 2025, the Office of the United States Trade Representative, the Department of Commerce, and the Department of Health and Human Services announced an agreement with the United Kingdom (U.K.) that will increase the net price of new prescription drugs by 25% in the U.K., helping ensure they pay their fair share for innovative medicines. On December 19, 2025, President Trump announced nine new agreements with major pharmaceutical companies. On February 5, 2026, President Trump launched TrumpRx.gov , where patients can access large discounts on many of the most popular and highest-priced medicines in the country, paying prices in line with the MFN price. As of today, August 31, the Administration now has agreements with Pfizer, Astra Zeneca, EMD Serono, Eli Lilly, Novo Nordisk, Amgen, Bristol Myers Squibb, Boehringer Ingelheim, Genentech, Gilead Sciences, GSK, Merck, Novartis, Sanofi, Johnson & Johnson, AbbVie, Regeneron, Alcon, Astellas Pharma, BeOne Medicines, BridgeBio, CSL, Kyowa Kirin, Sun Pharma, Teva Pharmaceuticals, and UCB. President Trump is calling on Congress to enact the Great Healthcare Plan , a comprehensive plan to lower drug prices, lower insurance premiums, hold big insurance companies accountable, and maximize price transparency. Source: Fact Sheet: President Donald J. Trump Announces Deal with Nine Additional Pharmaceutical Manufacturers to Lower Drug Prices for Americans – The White House

Boehringer Ingelheim Celebrates Grand Opening of New U.S. Animal Health Headquarters in Johns Creek, Georgia

August 31, 2026
NexGard® Plus donation to Johns Creek Police Department K-9 officers marks the company's commitment to the community. JOHNS CREEK, Ga. (August 31, 2026)– Boehringer Ingelheim today celebrated the grand opening of its new U.S. Animal Health headquarters in Johns Creek, Georgia, marking a significant milestone in the company's commitment to innovation, talent, and the future of animal health. Johns Creek was selected for its access to talent in one of the region's fastest-growing life sciences and innovation corridors, and proximity to other Boehringer sites in Georgia. The grand opening brought together elected officials, community leaders, customers, partners, and employees to celebrate Boehringer's presence in Georgia and its purpose of Transforming Lives for Generations through science and innovation. “The animals we care for and the customers we serve are at the center of everything we do,” said Peter Ploeger, U.S. Animal Health Country Managing Director, Boehringer Ingelheim . “This headquarters was designed to bring our people together, inspire collaboration, and strengthen our ability to develop solutions that improve the lives of companion animals, livestock, and the people who care for them. We are proud to call Johns Creek home and excited about the impact we will create together.” The Johns Creek headquarters complements Boehringer's broader Georgia footprint, which includes research, development, and manufacturing operations in Athens and manufacturing operations in Gainesville. Together, these sites, combining manufacturing, innovation and commercial activities, underline the importance of the U.S. for the company, which continues to invest in Georgia operations to deliver solutions that advance animal health around the world, according to event remarks from Dr. Armin Wiesler, Member of the Board of Managing Directors, Animal Health Business Unit . Georgia and local leaders, including Select Fulton Director of Economic Development Samir Abdullahi, highlighted Boehringer Ingelheim's continued investment in Georgia and commitment to the Johns Creek community. “Georgia continues to attract world-class companies because of our skilled workforce, business-friendly environment, and commitment to innovation,” said Georgia Gov. Brian P. Kemp . “Boehringer Ingelheim's investment in Johns Creek, along with their strong support of First Lady Marty Kemp's animal welfare efforts and K-9 law enforcement officers, reinforces their commitment to being a long-term partner with the State of Georgia." As part of the grand opening celebration, Alexandra McMenamy, U.S. Animal Health, Head of Pet at Boehringer , joined Chief Mitchell and local officials in presenting a donation of NexGard® Plus parasite protection to the Johns Creek Police Department's K-9 Unit in recognition of the department's service to the community. “We are proud to welcome a company committed to the well-being of animals,” said Mayor John Bradberry . “Boehringer Ingelheim’s support of the Johns Creek Police Department’s K-9 Unit is greatly appreciated.” The donation, made just after International Dog Day (August 26), highlights the company's commitment to supporting both animal health and the communities where its employees live and work. 
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