Archive for category: In the News

The air cargo sector faces major headwinds within this evolving tariff environment.
By Marina Mayer
August 12, 2025

New trade policies introduced by the United States have ushered in a challenging period for the aviation industry, particularly the air cargo and freight sector.

“The industry was set to build on a record 2024 performance with strong prospects for 2025 and beyond after years of post-COVID rebuilding and growth. It would be unfortunate and counterproductive to destabilize this important industry and its complex ecosystem, and we are hopeful that new international trade agreements can be reached with common-sense exemptions and reduced levies,” according to Cassel Salpeter & Co. “Until tariff uncertainties are resolved, it remains difficult to forecast the future of the industry and supply chains. We are cautiously optimistic that the industry will be able to adapt with new routes and strategies to weather the storm, executing a smooth landing after tariff turbulence.”

Despite the challenging landscape, the air cargo industry is exploring strategies to adapt, while hoping for policy resolution. And, new opportunities may emerge through expansion into additional global markets and premium air cargo pricing, according to datasets released by Cassel Salpeter & Co.

Key takeaways:

• Air freight operators might take proactive measures to mitigate tariff impacts by relocating or onshoring some of their operations and adopting hybrid models that combine direct air fulfillment with pre-stocked forward warehouses in key markets. This approach has the potential to establish new partnerships with countries that can reach negotiated settlements and reduced tariffs, which could diversify existing freight routes and generate additional business for air freight carriers.
• U.S.-based cargo airlines are actively seeking ways to offset higher import costs. Lower fuel prices can provide relief if demand remains stable, while rising jet fuel prices allow airlines to implement fuel surcharges that typically include profits above actual costs.
• Another cost-reduction opportunity involves consolidating air and ocean shipments under single customs entries, potentially reducing customs brokerage and government processing fees per shipment.
• The International Air Transport Association (IATA) downgraded its 2025 guidance for air cargo demand from its 5.8% growth forecast, issued December 2024, to a revised forecast of near-zero growth for the year. This represents a significant reversal for an industry where air cargo volume for passenger and all-cargo airlines grew 12% in 2024, reaching all-time highs.
• Air cargo volumes in the United States through May have declined approximately 25%, year-over-year, per estimates from freight forwarders and customs brokers. The decline has accelerated since May 2, when the de minimis exemption ended for goods from China. Since the Trump administration announced reciprocal tariffs in April, China-U.S. cargo volumes have dropped by up to 60%. Tariffs have severely impacted e-commerce bookings, which fell approximately 50% in May 2025.
• The daily number of trans-Pacific air freighters arriving at the Top 18 U.S. airports has decreased by approximately 30% since April, according to Cirrus Global Advisors. Current forecasts suggest the air cargo market could experience a continued downturn in the second half of the year due to the persistence of new U.S.-imposed tariffs and potential retaliatory measures taken by other countries.
• The impact of new U.S. tariff policy will extend far beyond immediate cost pressures; new trade policy aims to transform international trade and recast global trade routes. As a result, the tariffs have been particularly destabilizing to the airfreight industry, driving price volatility and forcing comprehensive route planning overhauls, particularly within the e-commerce sector.
• The elimination of the $800 de minimis exception for imported goods, combined with increased tariffs, is expected to send air cargo volumes plummeting for low-value e-commerce shipments. With de minimis exemptions unlikely to return, Chinese e-commerce leaders now send products into the United States via bulk sea freight shipments to U.S.-based warehouses and distribution centers, abandoning their use of individual air shipments for direct-to-consumer fulfilment that previously drove cargo aviation growth.
• The air cargo sector faces major headwinds within this evolving tariff environment. Cargo airlines must navigate an increasingly complex landscape of disrupted trade flows as manufacturers and retailers reconfigure supply chains in response to new levies. This will reshape network planning, capacity deployment, and aircraft acquisition strategies as carriers adapt to altered trade routes and cargo volumes.
• The implications of new trade policies are concerning and include declining demand for freighter aircraft and fleet expansion. This may be amplified by a downturn in freighter conversions, driven by rising component costs and procurement delays. Dedicated freighters increasingly dominate global trade volume over passenger aircraft belly cargo; volatility in the freighter market can drive significant systemic impacts.

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Source: INDIGO ACQUISITION CORP

NEW YORK, July 11, 2025 (GLOBE NEWSWIRE) — Indigo Acquisition Corp. (the “Company”) announced today that it has consummated the sale of the full 1,500,000 units subject to the over-allotment option granted to the underwriters in connection with its initial public offering. The additional units were sold at $10.00 per unit, generating additional gross proceeds to the Company of $15,000,000.

The Company’s units are listed on the Nasdaq Global Market (“Nasdaq”) and trade under the ticker symbol “INACU.” Each unit consists of one ordinary share and one right entitling its holder to receive one tenth of one ordinary share upon the Company’s completion of an initial business combination, subject to adjustment. Once the securities comprising the units begin separate trading, the ordinary shares and rights are expected to be listed on Nasdaq under the symbols “INAC” and “INACR,” respectively.

The Company is a Cayman exempt company, formed as a blank check company for the purpose of entering into a merger, share exchange, asset acquisition, share purchase, recapitalization, reorganization or similar business combination with one or more businesses or entities. The Company intends to focus on opportunities with established, profitable companies with attractive market positions and/or growth potential that can leverage our management team’s experience and expertise. The Company is led by its Chairman of the Board and Chief Executive Officer, James S. Cassel, and its Chief Operating Officer and Chief Financial Officer, Scott Salpeter.

EarlyBirdCapital, Inc. acted as the book-running manager for the offering and IB Capital acted as co-manager for the offering. The offering was made by means of a prospectus. Copies of the prospectus may be obtained from EarlyBirdCapital, Inc., 366 Madison Avenue, New York, New York 10017, Attention: Syndicate Department, or (212) 661-0200.

A registration statement relating to these securities was filed with the Securities and Exchange Commission (the “SEC”) and was declared effective on June 30, 2025. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

FORWARD-LOOKING STATEMENTS
This press release contains statements that constitute “forward-looking statements.” No assurance can be given that the net proceeds of the offering will be used as indicated in the offering prospectus. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company, including those set forth in the Risk Factors section of the Company’s registration statement and preliminary prospectus for the offering filed with the SEC. Copies are available on the SEC’s website, www.sec.gov. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

Contact:

James S. Cassel, CEO
jcassel@cs-ib.com
305-438-7700

Scott Salpeter, CFO
ssalpeter@cs-ib.com
305-438-7700

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Source: INDIGO ACQUISITION CORP

NEW YORK, June 30, 2025 (GLOBE NEWSWIRE) — Indigo Acquisition Corp. (the “Company”) announced today that it priced its initial public offering of 10,000,000 units at $10.00 per unit. The Company’s units will be listed on the Nasdaq Global Market (“Nasdaq”) and will begin trading tomorrow, July 1, 2025, under the ticker symbol “INACU.” Each unit consists of one ordinary share and one right entitling its holder to receive one tenth of one ordinary share upon the Company’s completion of an initial business combination, subject to adjustment. Once the securities comprising the units begin separate trading, the ordinary shares and rights are expected to be listed on Nasdaq under the symbols “INAC” and “INACR,” respectively.

The Company is a Cayman exempt company, formed as a blank check company for the purpose of entering into a merger, share exchange, asset acquisition, share purchase, recapitalization, reorganization or similar business combination with one or more businesses or entities. The Company intends to focus on opportunities with established, profitable companies with attractive market positions and/or growth potential that can leverage our management team’s experience and expertise. The Company is led by its Chairman of the Board and Chief Executive Officer, James S. Cassel, and its Chief Operating Officer and Chief Financial Officer, Scott Salpeter.

EarlyBirdCapital, Inc. is acting as the book-running manager for the offering and IB Capital is acting as co-manager for the offering. The Company has granted the underwriters a 45-day option to purchase up to an additional 1,500,000 units at the initial public offering price to cover over-allotments, if any. The offering is being made only by means of a prospectus. Copies of the prospectus may be obtained, when available, from EarlyBirdCapital, Inc., 366 Madison Avenue, New York, New York 10017, Attention: Syndicate Department, or (212) 661-0200.

A registration statement relating to these securities was filed with the Securities and Exchange Commission (the “SEC”) and was declared effective on June 30, 2025. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

FORWARD-LOOKING STATEMENTS
This press release contains statements that constitute “forward-looking statements.” No assurance can be given that the offering discussed above will be completed on the terms described, or at all, or that the net proceeds of the offering will be used as indicated in the offering prospectus. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company, including those set forth in the Risk Factors section of the Company’s registration statement and preliminary prospectus for the offering filed with the SEC. Copies are available on the SEC’s website, www.sec.gov. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

Contact:

James S. Cassel, CEO
jcassel@cs-ib.com
305-438-7700

Scott Salpeter, CFO
ssalpeter@cs-ib.com
305-438-7700

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By Angela Gabriel
May 9, 2025

In a recent BioSpace LinkedIn poll, nearly half of respondents predicted the job market won’t turn around until 2027 or later. It’s easy to see why people are skeptical, especially when you consider recent hiring activity and layoffs.

EDITORIAL
Biopharma professionals don’t have much hope for the biopharma job market turning around this year, based on a recent BioSpace LinkedIn poll. A whopping 74% of respondents predicted it won’t improve until 2026 or later, and 44% don’t expect a turnaround until at least 2027. It’s easy to understand the skepticism given that the positive signs people were looking for to spur hiring, including increased funding, haven’t materialized as layoffs continue.

Biopharma professional Pierre Michel Baez Ortiz is among those feeling pessimistic about the job market turning around anytime soon. In a poll comment, he noted that Maryland hasn’t recovered from the crash after the pandemic-era money infusion ran out.

“Over three years and the region is unstable as hell,” he wrote. “There’s zero job security and some people in my network have been unemployed for more than a year, a few for several years. And now we have more big companies leaving Montgomery County.”

If the industry recovers, he added, it wouldn’t be for maybe two more years.

Biopharma professional Ricardo Azedo took a more positive tone in the poll comments, writing, “I want to be hopeful, so I’d cast my vote to ‘as soon as possible.’”

That said, just 27% of voters predicted the job market will turn around by the end of this year.

Reasons for Skepticism Easy To Find

It’s not hard to spot what might be fueling people’s skepticism. In addition to factors such as venture capital funding dropping 20% year over year in the first quarter, massive Department of Health and Human Services layoffs and looming pharma tariffs, consider:

• Late last month, the U.S. Bureau of Labor Statistics reported that the number of job openings was little changed in March and dropped by 901,000 over the year.
• In April, job postings live on the BioSpace website were up just 1% month over month and down 8% year over year.
• Although the number of biopharma professionals laid off in April dropped 22% year over year, according to BioSpace tallies, the 1,357 people affected was the second-highest monthly total of 2025. (Note: Figures exclude contract development and manufacturing organizations, contract research organizations, tools and services businesses and medical device firms.)

In what’s sure to be unwelcome news, May’s layoffs have already surpassed April’s with Teva Pharmaceuticals cutting 2,893 employees worldwide. Add Bristol Myers Squibb’s layoffs of 516 people in Lawrenceville, New Jersey, and you’re at about 3,400 people out of work between just two companies. That’s especially significant given that just over 4,000 biopharma employees were laid off over the entire first quarter.

Those layoff numbers likely wouldn’t surprise Ira Leiderman, healthcare managing director at investment banking firm Cassel Salpeter & Co. During an interview for a recent BioSpace article, he noted that companies are “leaning down.”

“People need to husband their cash, manage their expenditures, and unfortunately, it’s costing people their jobs and their livelihoods,” he said.

Leiderman doesn’t see hiring rising in the near term and theorized that mid-level and senior-level people could leave the country and head to Europe, leading to some brain drain. He also noted that biopharma professionals might change industries.

For those who need jobs now, and especially for those who’ve needed them for several months or longer, leaving the U.S. or biopharma itself to gain employment is understandable. As Leiderman said, “People have to pay their bills, right? They’ve got to make a mortgage payment. They’ve got to put food on the table for their kids. You’ve got to live the dream, but you’ve got to also be realistic at some point.”

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By Ana Mulero
April 23, 2025

Biotech was starting to show signs of recovery after years of investor pullback—until new tariffs and economic uncertainty sent fresh shockwaves through an already fragile market.

More capital left biotech than entered the sector in 42 of 52 weeks of 2024. It was the second consecutive year of a prolonged downturn in biotech investment following the COVID-19 pandemic boom. And now, macro headwinds are adding even more to the gale pressuring the industry.

Bruce Booth, partner at early-stage biotech venture capital firm Atlas Venture, told BioSpace that “the biotech capital markets have been super challenging in the past couple of months; tariffs and macro issues, FDA turmoil, NIH issues and so much more.”

“There’s been no place for investors and companies to hide,” Booth added. “The daily volatility is a nauseating roller coaster.” Still, he emphasized that these gyrations haven’t shaken his belief in biotech’s long-term promise.

Frustrated investors have been pulling back from biotech, accelerating the flow of funds out of therapeutics development and signaling a sharp decline in confidence in the sector’s near-term potential. In 2024, capitulation in biotech got “so bad it might just be good,” Christopher Raymond, managing director and senior research analyst at Piper Sandler, told BioSpace.

Capitulation marks a moment of extreme investor pessimism when money exits the sector rapidly and sustainably. Christopher Garabedian, CEO of life sciences accelerator Xontogeny and Perceptive Advisors portfolio manager, explained that capitulation occurs when investors say, “We’re done,” and collectively sell off their holdings, unable to justify being in biotech anymore.

On a more positive note, Piper analysts said that such massive outflows often indicate that the worst of a downturn may be over, with the market potentially approaching or already hitting bottom—a sign that a recovery is finally on its way. This time, however, nascent signs of recovery in 2025 have been overshadowed by political turbulence and trade tensions.

“As the first quarter ends, the mood among biotech investors is poor, with frustration, despair and resignation widely felt,” TD Cowen’s analysts wrote in a recent note.

The Roots of Capitulation

Biotech, more than other sectors, relies on investor confidence to sustain the lengthy and costly therapy development process.

The roots of 2024’s biotech struggles stretch back to late 2021, when the market began cooling after the COVID–19 pandemic-driven boom. 2022 and 2023 were marked by a sharp decline in IPOs, shrinking private financing and waves of industry layoffs.

“In the pandemic years, we saw a surge in IPOs due to lower interest rates and an influx of nontraditional capital,” EY’s Arda Ural, who specializes in strategic planning and asset valuation in biotech, told BioSpace. “However, most of those assets have not lived up to their initial pricing and are trading underwater for their investments.”

Ira Leiderman, healthcare managing director at investment banking firm Cassel Salpeter & Co., echoed this sentiment. “Biotechs take a long time to die,” he told BioSpace. “But over the past few years, we’ve seen companies exhaust their runway. Some have restructured and many have gone bankrupt.”

Piper reported that in 2022, the biotech market held up better than in the two years that followed. While inflows slowed after December 2021, money was still entering the sector early in the year, and there were no major signs of panic.

The proportion of rising stocks versus falling ones, known as the breadth ratio, is another proxy for market sentiment, with lower values suggesting a broad-based retreat. According to Piper, the breadth ratio stood at 0.63 in late January 2022. By contrast, 2023 marked a deeper downturn, with the breadth ratio dipping to 0.29 in November.

Capitulation, too, followed this trend. Investor sentiment weakened as 36 of the first 45 weeks in 2023 saw outflows. Piper called 2023 “abysmal,” with net outflows of $16 billion, compared to $12.7 billion in 2024.
In 2024, the pressure continued, with biotech fund outflows occurring in 42 of 52 weeks, according to Piper Sandler data. Lipper/AMG Data Services put out similar findings, revealing that 80–85% of 2024 biotech investment funds experienced outflows.

“We’ve had essentially two straight years—2023 and 2024—of nothing but negative fund flows,” Raymond said. The breadth ratio also dipped in 2024, down to 0.21—the “lowest level since 2009 and below the magic number of 0.3,” which has historically been the point of a market rebound, he said.

This trend does not necessarily indicate a complete rejection of biotech, Garabedian stressed. Investors may be exiting simply to balance their portfolios, offsetting gains elsewhere, he told BioSpace.

Indeed, history suggests that when the breadth ratio falls below 0.3 like in December 2024, the S&P biotech index, or XBI, typically gains around 16% over the next six months. Booth said that as 2025 unfolds, the historical pattern Piper highlighted provides a glimmer of optimism for the industry.

“Biotech will remain in recovery mode [in 2025], but that doesn’t mean pessimism prevails,” Evaluate’s 2025 preview states.

But with the administration threatening a variety of tariffs and wiping out much of the government’s workforce, including many top regulators, the path of that recovery has become ever more uncertain.

“Given the current environment, we don’t anticipate the IPO market to offer a window in the next 3–6 months,” Ural said.

Rising Tides in a Very Rough Ocean

Still, Booth remains hopeful about biotech’s outlook. He said that while current volatility is “nauseating,” early-stage investors can take the long view.

“Fortunately, as early-stage venture investors, we can take a very long-term view of the space,” Booth told BioSpace, “and our perspective on the sector’s 5–10 year horizon remains very positive.”

He emphasized, however, that macroeconomic stability will be crucial for sustaining momentum. Upheaval at the FDA and other agencies under Robert F. Kennedy, Jr.’s oversight as secretary of the Department of Health and Human Services continues to ripple across the industry, as do the continued tariff threats from President Donald Trump.

Prior to these developments, biotech had set itself up for a recovery. Private investment had strengthened, particularly in early-stage companies. “Both seed-stage and Series A have seen strong investment,” Kale Frank, managing director of Silicon Valley Bank’s (SVB) life science and healthcare division, told BioSpace. 2024 also was the second-largest year for public equity issuance ever, Frank added.

With valuations adjusted downward, biotech companies adopted leaner operating strategies and were prioritizing their most promising assets. Garabedian said this is a “silver lining” highlighted by the Piper data. “All these things are in play now, so the runways these companies have when they do raise money will get farther.”

Still, in this environment, only the strong survive, said Margery Fischbein, healthcare managing director at CS. The gap between the “haves and have-nots” in biotech is widening, she warned. Thus, even when the sector does buoy, “I don’t think we’ll see a rising tide lifting all boats.”

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