Biotechnology Expands in Southern California

Southern California has had a flurry of activity—from investments by major companies to acquisitions and an IPO—over the past 12 months that solidify its role as a growing life science hub. From San Diego’s major cluster of companies to Amgen in Thousand Oaks, the industry’s growth has boosted prospects for new drug developments and delivery systems.

Northridge-based MiniMed Group Inc. (NASDAQ: MMED) began trading on March 6 as a split-off from Medtronic. The company is a global leader in insulin delivery, advancing therapies that support people with diabetes in 80 countries. “Now, with a singular focus and renewed purpose, we’re poised to shape the future of diabetes care as the only company that commercializes a fully integrated insulin delivery system with connected devices designed to work seamlessly together,” said Que Dallara, chief executive of MiniMed, in a statement.

Following that announcement, the company’s board authorized a stock repurchase plan that allows it to repurchase up to $100 million. The net proceeds to MiniMed were approximately $538 million. It intends to use a portion of the funds raised for general corporate purposes. The remainder was used to repay debt owed to Medtronic.

The IPO was one of several notable transactions involving local companies. In February, Novartis AG completed its $12-billion acquisition of San Diego-based Avidity Biosciences Inc., making it an indirect, wholly owned subsidiary of Novartis. Avidity had successfully completed early clinical trials on drugs to treat muscular dystrophy. “Avidity’s breakthrough science combined with Novartis capabilities will help reimagine what’s possible for people with devastating genetic neuromuscular diseases,” said Vas Narasimhan, chief executive of Novartis, in a statement. “Avidity’s muscle-directed AOC platform and late-stage programs advance our RNA therapeutics and have the potential to deliver first-in-disease therapies.”

Meanwhile, San Diego-based AnaptysBio Inc., a clinical-stage biotechnology company focused on delivering innovative immunology therapeutics, announced plans in March to spin-off bio-pharma operations into a public company dubbed First Tracks Biotherapeutics Inc. The management company will initially retain the name AnaptysBio while First Tracks Biotherapeutics will be a public company focused on the development and potential commercialization of immunology therapeutics for autoimmune and inflammatory diseases.

“We are approaching a defining inflection point for Anaptys, as we plan to spin-off in Q2 2026 our wholly owned biopharma portfolio into a public company, to be called First Tracks Biotherapeutics, to unlock and amplify value for investors across two distinct sets of assets,” said Daniel Faga, chief executive and president of Anaptys, in a statement.

Local companies are also investing heavily in operations. Amgen, the largest biotech company in Southern California as measured by employee head count, announced plans in September to invest more than $600 million in a new, state-of-the-art center for science and innovation at its global headquarters in Thousand Oaks. The center is designed to bring together researchers, engineers and scientists across disciplines to enhance collaboration and accelerate the discovery of next-generation therapeutics for patients with the most serious diseases. The building will feature advanced automation and digital capabilities.

That facility is in addition to other recent investments from the company including a $900-million expansion of its manufacturing facility in central Ohio and a $1-billion investment to build a second manufacturing plant in Holly Springs, North Carolina. “This new center will empower our scientists with the tools and collaborative environment they need to shape the next era of scientific discovery and advance medicines that improve human health,” said Robert Bradway, chairman and chief executive of Amgen, in a statement.