The Bio Report

Despite the emergence of new modalities and drug development technologies, the cost and time to produce new therapies has changed little, and failure rates remain high. Xaira aims to change that with a systematic, AI‑driven approach that tackles three pervasive bottlenecks—choosing the right targets, designing the right molecules, and matching the right patients—by running as much work as possible in silico and using high‑dimensional causal datasets to train “virtual cell” foundation models. The company is initially focusing on high‑value, historically undruggable targets and ultimately on building a pipeline of differentiated biologics. We spoke with Marc Tessier‑Lavigne, co‑founder and CEO of Xaira, about applying end‑to‑end AI across target discovery, molecular design, and patient stratification, the company’s more than $1 billion in funding, and how it seeks to enable a new generation of scientists fluent in both AI and biology.

Finding New Targets on the Surface of Misfolded

One of the biggest hurdles in drug development is targeting proteins found in both healthy and diseased cells without triggering toxic side effects. In cancer, this challenge often translates into narrow therapeutic windows, collateral damage to normal tissues, and forced dose reductions that limit efficacy. The result is a crowded field where many companies chase the same well-known targets, leaving vast patient populations without effective options. Immuto Scientific is taking a different approach. The company is redefining how targets are identified—focusing not on genetic sequence, but on disease-specific protein conformations. By studying the structural shapes that proteins take in malignant cells, Immuto aims to distinguish cancerous from healthy tissue, broaden therapeutic windows, and unlock new or previously undruggable targets across oncology and beyond. We spoke with Faraz Choudhury, co-founder and CEO of Immuto Scientific, about the company’s AI-enabled structural surfaceomics platform, how it allows drugs to selectively home in on diseased cells while sparing normal ones, and Immuto’s plans to extend its science into immunology and inflammation.

Proteins

Systemic chemotherapy remains the foundation of cancer treatment, but its widespread toxicity too often cuts short potential therapeutic benefits. NanOlogy is developing a new approach—localized cancer therapy that keeps the drug where it’s needed most. We spoke to Marc Iacobucci, managing director of Nanology about the company’s precision particle engineering platform, how it transforms existing oncology drugs into microparticles optimized for intratumoral delivery; and how this enables sustained, high-concentration dosing inside tumors that destroys cancer cells, stimulates immune responses, and spares patients the debilitating effects of systemic chemotherapy.

One of the challenges in treating the neurodegenerative condition Alzheimer’s disease is intervening early enough in the course of illness to provide meaningful benefit. AltPep is developing therapeutics with companion diagnostics that target toxic α-sheet–containing oligomers, which are thought to form very early in the disease and act as molecular triggers of downstream amyloid pathology. These structures are believed to represent some of the earliest detectable stages of Alzheimer’s and to promote the formation of amyloid plaques, a hallmark feature of the condition.​ We spoke with Valerie Daggett, founder and CEO of AltPep, about the relationship between α-sheet oligomers and the onset of Alzheimer’s disease, how the company’s synthetic peptides are designed to bind and neutralize these pathogenic agents, and the potential for this platform to be extended to a broader set of amyloid diseases.

Biotech stocks staged a dramatic turnaround in 2025, with the XBI well outpacing the S&P 500 despite concerns over leadership changes at the U.S. Food and Drug Administration, the Trump administration’s efforts to put constraints on drug pricing, and its broader cuts to health and science agencies. A pick-up in deal-making, along with falling interest rates, helped buoy the sector with growing anticipation for continued improvement in 2026. We sat down with Adam Feuerstein, senior biotech writer for STAT, for our annual review-preview edition, the noteworthy trends in the biotech sector 2025, and what’s in store at the upcoming JPMorgan Healthcare Conference and beyond in 2026.