International
BlackRock’s Larry Fink And The New Post-ESG Realism
BlackRock’s Larry Fink And The New Post-ESG Realism
Authored by Rupert Darwall via RealClear Wire,
As regular as the turn of the seasons,…

Authored by Rupert Darwall via RealClear Wire,
As regular as the turn of the seasons, each January sees Larry Fink, founder and CEO of BlackRock, the world’s largest asset manager, publish a lengthy letter on the state of the world and its implications for finance and investors. This year, January turned to February, and still no letter. Instead, February saw Tim Buckley, CEO of Vanguard, global number-two asset manager, give a groundbreaking interview explaining Vanguard’s decision late last year to quit the Net Zero Asset Managers (NZAM) initiative, which had been formed ahead of the 2021 Glasgow climate conference to reallocate capital in line with net zero emissions targets.
“It would be hubris to presume that we know the right strategy for the thousands of companies that Vanguard invests in,” Buckley told the Financial Times, adding that Vanguard was “not in the game of politics.” He warned investors against expecting superior returns from environmental, social, and governance (ESG) investing. “Our research indicates that ESG investing does not have any advantage over broad-based investing.”
Writing five days later in the Wall Street Journal, Terrence Keely, former BlackRock executive and author of Sustainable, zeroed in on the conflict of interest highlighted by Vanguard’s departure from NZAM and NZAM’s net zero goal. Swept along by climate-change fervor, an investment manager “can’t make such commitments without reneging on its fiduciary duties,” Keeley argued. Membership of an alliance committed to achieving net zero demands clairvoyance that no investment manager can promise. “If Mr. Buckley is right, then hundreds of other financial institutions with trillions of assets under management are wrong”—Keeley’s unstated implication being that if Vanguard is right, BlackRock is also wrong.
When it came earlier this month, Fink’s 2023 letter colored in the new investment climate adumbrated by BlackRock’s chief competitor. Whereas Fink’s 2021 letter to CEOs mentioned net zero 22 times and his 2022 letter, nine times, net zero was referred to only once this year—and then, only in passing (“European governments are also developing incentives to support the transition to a net zero economy and drive growth.”) Similarly, mentions of ESG have fallen from ten in 2021, to one last year, to none this year. How times have changed.
Two years ago, BlackRock made a blunt demand of the companies that it invests in: “We are asking”—that’s an instruction; you can hardly say no to the world’s largest investor—“companies to disclose a plan for how their business model will be compatible with a net zero economy.” This hasn’t been entirely walked back. BlackRock, Fink says, has been vocal in the past about companies disclosing how they plan to navigate the energy transition, but the tone now is softer and less vocal. It is not the role of an asset manager like BlackRock to engineer a particular outcome in the economy, Fink writes, and it’s not its place to tell companies what to do. Forswearing the clairvoyance that Keeley criticizes, Fink says that BlackRock doesn’t “know the ultimate path and timing of the transition,” a position that is not as crystalline as Buckley’s but is hard to reconcile with BlackRock’s continued membership of NZAM. Had this been BlackRock’s position two years ago, it would have been noisily condemned by climate activists and BlackRock would have been accused of sabotaging the Glasgow climate conference. So far, there has scarcely been a murmur. The world is quietly moving on from net zero.
So have BlackRock’s priorities. Whereas climate rates five mentions this year, compared with 27 two years ago, there are 122 mentions of clients—over four times the number in the BlackRock Global Executive Committee’s “Dear Clients” letter two years ago. Even more revealing is the change in the number of mentions of trust and fiduciary. There are 21 mentions of trust this year and one in the 2021 letter. That letter, billed “Net zero: a fiduciary approach,” contained only one other mention of fiduciary, a lapse that bears out Keeley’s argument on the incompatibility of imposing climate targets on asset portfolios and investment managers discharging their fiduciary duties.
Fink’s emphasis has changed, too. Two years ago, Fink compared climate change with the Covid pandemic as an existential threat exposing the fragility of society. This year, Russia’s invasion of Ukraine and heightened geopolitical tensions bring national and economic security “front and center.” In the short term, making supply chains more resilient is highly inflationary, Fink writes, and it’s fair to say that Fink doesn’t believe that the Inflation Reduction Act will reduce inflation. “I believe inflation is more likely to stay closer to 3.5 percent or 4 percent in the next few years.”
The crisis that Fink highlights in this year’s letter is not a climate crisis, but a silent crisis of people not saving and investing sufficiently for their retirement. Results of an Edelman Trust Barometer survey asking whether people thought their families would be better off in five years were at an all-time low in 24 out of 28 countries. “When people are afraid, they may save, but they won’t invest,” Fink observes. “We need leaders today who will give people reasons to be hopeful, who can articulate a vision for a brighter future.” Amen to that. It’s high time to end talk about existential crises to be addressed with extraordinarily costly measures that make people poorer, weaken national and economic security and, instead, turn attention to tackling soluble problems with positive solutions.
Rupert Darwall is a senior fellow of the RealClear Foundation and author of Climate-Risk Disclosure: A Flimsy Pretext for a Green Power Grab.
International
NYC biotech LB Pharmaceuticals eyes $75M for new take on decades-old schizophrenia drug
As Karuna Therapeutics wraps up its FDA approval request for what could be the first new type of schizophrenia drug in decades, another East Coast biotech…

As Karuna Therapeutics wraps up its FDA approval request for what could be the first new type of schizophrenia drug in decades, another East Coast biotech is raising $75 million to test an adjusted version of a decades-old medicine for the disorder next year.
LB Pharmaceuticals has secured about $35 million so far and expects another $40 million in the round, according to an SEC filing on Thursday. Per the financial document, its board includes directors associated with Vida Ventures, Pontifax, Deep Track Capital and TCGX, a crossover firm that has invested in multiple nine-figure biotech financings in recent months, including Carmot Therapeutics, Alkeus and Upstream Bio.
LB declined to comment.
The New York City biotech plans to run a Phase II trial of a chemically differentiated form of amisulpride, a D2 and D3 antagonist that has been available in Europe and more than 50 countries for decades, according to an investor deck from June. Sanofi marketed it as Solian, which generated €135 million in sales in 2002 for the French Big Pharma. It’s since become available as a generic.
LB’s board includes Piero Poli, CEO of Swiss drugmaker Rivopharm, which produces generic amisulpride. In February 2020, Acacia Pharma secured FDA approval for an IV formulation of amisulpride in certain postoperative patients with nausea, marketing it as Barhemsys.
With its methylated version of amisulpride, LB says its oral asset LB-102 has the potential to be more effective at lower doses by improving blood-brain barrier permeability, per the investor deck. Its new chemical structure gives LB-102 IP protection until “at least 2037.” LB has positioned the drug as a blockbuster treatment that could generate $1 billion or more in annual sales, pointing to antipsychotic prescriptions in the EU with an average price of $2,000 per month.
The drug is set to go into Phase II testing in adults with acute schizophrenia in the first quarter of next year, per the June document.
The company expects to enroll about 350 people at 25 sites, testing whether three doses of the drug are better than placebo based on the commonly used schizophrenia clinical trial measure known as PANSS, or Positive and Negative Syndrome Scale. Karuna’s M1/M4-preferring muscarinic agonist KarXT has passed two Phase III trials that use that measure, leading to massive financing hauls for the biotech and Cerevel Therapeutics. Boston-based Karuna plans to submit its approval request to the FDA this quarter. Meanwhile, Sumitomo and Otsuka’s ulotaront failed a Phase III on the PANSS test two months ago.
LB expects the study to focus on in-patients for four weeks. Pending the mid-stage results, the company would likely then take LB-102 into multiple Phase III trials in 2025, with plans to submit an NDA in 2028, per the June presentation. The company sees schizophrenia as the first step, with potential for studies in depression, bipolar depression and other indications.
The drug developer is led by a former family office manager, CEO Zachary Prensky. LB’s medical chief is Anna Eramo, who previously ran clinical and medical affairs at Lundbeck’s US operations and worked on the development of Rexulti, approved for schizophrenia and other indications. Science chief Andrew Vaino and chief financial officer Marc Panoff were previous executives at Retrophin.
Prensky co-founded LB with Vincent Grattan, a pharmacist who came across amisulpride in the 2000s while working on medication managements in multiple prisons. “As many are aware, correctional facilities are de facto mental health hospitals, and I wanted to make sure we were stocking the most reliable medications,” he told Psychiatric News in 2021.
depression treatment testing fda medication europe euInternational
Dana-Farber, Brigham breakup could lead to a ripple effect for CGT clinical trials for cancer
Dana-Farber Cancer Institute announced on Sept. 14 that it is securing a new joint venture with Beth Israel Deaconess Medical Center, marking a breakup…

Dana-Farber Cancer Institute announced on Sept. 14 that it is securing a new joint venture with Beth Israel Deaconess Medical Center, marking a breakup of its decadeslong adult cancer care partnership with Brigham and Women’s Hospital.
The news shocked Brigham, which had been negotiating a partnership extension with Dana-Farber for the past 15 months, according to the Boston Globe.
There are around 20 ongoing cell therapy clinical trials under the Dana-Farber Brigham Cancer Center, which comprises 12 treatment centers with experts from Dana-Farber and Brigham working together. Brigham also has its own gene and cell therapy institute and a lab dedicated to next-generation, genetically-modified CAR-T cell therapies for cancer.
With the Dana-Farber contract set to end in 2028, concerns have been raised about the impact on current cell and gene therapy (CGT) studies and ones that are scheduled to start, due to the complex nature of the treatments involved.
Manufacturing CGTs is a skill- and labor-intensive process. Ori Biotech CEO Jason Foster told Endpoints News that hospitals and research centers often work together to make them on-site for clinical trials, with highly skilled experts from the specialty centers playing a key role. UK-based Ori develops technologies that automates CGT manufacturing.
At Dana-Farber Brigham Cancer Center’s cellular therapies program, cells are processed at an outside commercial facility or at the Connell and O’Reilly Families Cell Manipulation Core Facility.
When such partnerships come to an end, “that kind of [specialist] knowledge loss is something that will impact both the trajectory of [CGT] trials, but also the time it takes to get these products to patients,” Foster added.
These potential negative impacts on trials would only compound preexisting barriers to access to CGTs, including high costs and lengthy manufacturing processes. Estimates suggest that 25% of patients die while waiting for CAR-T treatments, according to ASCO Post.

Lee Buckler, senior vice president of advanced therapies at Blood Centers of America, told Endpoints in an email that collaboration between research institutes and healthcare providers was of significant — if not critical — value to the testing of CGTs.
A Brigham spokesperson said that the hospital is one of the largest recipients of NIH funding and does not expect any changes to trials already under agreement, adding it would continue to be a leader in the CGT space. “We are also planning for a new, state of the art Brigham facility which will include the medical oncology specialty,” the spokesperson said.
Dana-Farber did not respond to Endpoints before deadline.
Problems with CGT trials could be both the cause and the effect of partnership breakdowns. Buckler said that general hospitals are often reluctant to facilitate the kinds of clinical trial protocols associated with innovative CGTs, which may drive research centers to align with partners more willing to prioritize them.
Under the new partnership with Beth Israel, Dana-Farber plans to create a free-standing state-of-the-art cancer hospital, which it said would have the flexibility to “incorporate the innovations and technology in cancer care that Dana-Farber’s and BIDMC’s researchers and clinicians are developing every day.”

But a dedicated cancer hospital is not necessarily better at carrying out CGT trials than a general hospital with a tightly-integrated cancer specialty.
“I’ve seen general hospitals with tremendous capabilities and specific hospitals with tremendous capabilities — it really depends on the particular hospital,” Orgenesis CEO Vered Caplan told Endpoints in an interview. Germantown, MD-headquartered Orgenesis rolls out CGT mobile processing units and labs for cancer treatment to hospitals.
Regardless, the breakup means Dana-Farber must convince patients that its program with Beth Israel will provide at least the same quality care as the Brigham partnership, while Brigham must rebuild its specialist capabilities without Dana-Farber expertise.
treatment testing clinical trials therapy ukGovernment
Zelensky Departs Washington Mostly Empty-Handed Amid Mood Shift In West
Zelensky Departs Washington Mostly Empty-Handed Amid Mood Shift In West
By all accounts, Zelensky came away from his Washington visit with…

By all accounts, Zelensky came away from his Washington visit with nothing new. Biden did announce a fresh $325 million aid package for Ukraine from already committed funds, but the hoped-for long range missile approval never came (however, more cluster bombs are being sent). And as we detailed Thursday, House Republican leadership once again failed to move forward on a mere procedural vote for the Pentagon funding bill, due in large part to GOP members rejecting Biden's proposed $24 billion more in Ukraine aid.
Thursday's package announced by Biden, as Zelensky visited the White House and Capitol Hill, was run-of-the-mill and entirely to be expected. "Today I approved the next tranche of U.S. security assistance to Ukraine including more artillery, more ammunition, more anti-tank weapons and next week, the first U.S. Abrams tanks will be delivered to Ukraine," Biden said.
As for the earlier in the day (Thurs.) meeting with Congressional leaders, House Speaker Kevin McCarthy explained when asked why the Ukrainian leader's request to address Congress was denied, "Zelensky asked for a joint session, we just didn't have time. He's already given a joint session."
Instead in a closed-door meeting, Zelensky later acknowledged he discussed with lawmakers "the battlefield situation and priority defense needs."
But if there is any level of consolation for Kiev, it's seen in the Pentagon announcement which came late in the day Thursday. Facing potential US government shutdown on Oct.1st, given at this point Congress is not expected to pass the 12 appropriations bills needed to fund government operations before next fiscal year, the Pentagon has said it will exempt its operations supporting Ukraine from a shutdown.
The military typically suspends any activities not deemed vital to national security during government shutdowns, thus the DoD is in effect saying Ukraine aid remains "vital to national security".
"Operation Atlantic Resolve is an excepted activity under a government lapse in appropriations," Pentagon spokesman Chris Sherwood told Politico, in reference to the operational name still used for actions supporting Kiev.
But Politico points out a potential shutdown would still negatively impact US support to Ukraine:
Sherwood noted that while DOD’s activities related to Ukraine will continue, furloughs and other activities halted under the shutdown could still have a negative impact.
"Training would happen, but depending on whether or not there were certain personnel that were not able to report for duty, for example, that could have an impact," said Pentagon spokesperson Brig. Gen. Patrick Ryder on Thursday.
This Pentagon exemption to keep Ukraine-related support active during a government shutdown seems to be the only significant thing Zelensky came away with.
Zelensky visited the US in person, made a speech at the UN, and came home with an amount of ammo so small the Pentagon won't give numbers and a handful of the worst air defense systems currently in use by a major power.
— Armchair Warlord (@ArmchairW) September 22, 2023
In the Army we called this "getting thrown under the bus." pic.twitter.com/f8hFVstDud
It appears to have been the main object of discussion when Zelensky met with Secretary of Defense Lloyd Austin in Washington during the trip. The Pentagon said this was "to reaffirm the steadfast US support for Ukraine."
Meanwhile, Bloomberg takes note of Zelensky "showing the strain" amid increasing divisions among allies:
The Ukrainian president allowed a dispute with one of his biggest allies to spin out of control at the United Nations General Assembly this week, and that’s just a hint of the tensions building behind the scenes.
Zelenskiy has been leading his country through Russia’s brutal assault for 19 months, all the time fighting on another front to wring the weapons and finance he needs from his US and European supporters. Now he suspects that President Joe Biden’s commitment is wavering and other leaders may be taking their cue from the US, according to a person who met with him recently.
He grew very emotional at times during that discussion, the person said, and was scathing in his criticism of nations that he said weren’t delivering weapons quickly enough.
Washington's lackluster greeting of Zelensky this week (compared to how he was received in December 2022) came simultaneous to Poland declaring it will no longer arm Ukraine, amid a fierce diplomatic spat over blockage of Ukraine grain imports by Warsaw, to protect Polish farmers.
The Economist is also taking note of the significant mood shift among Western allies...
A "long war" indeed... given a G7 leader from a European country has told reporters this week that the West is prepared for a years-long war, something likely to last some six or seven years, according to the quote.
"A senior official from one European G-7 country said the war may last as much as six or seven more years and that allies need to plan financially to continue support for Kyiv for such a long conflict," Bloomberg wrote.
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