The best news in biotech, January 13 - 19

And that's a wrap for JPM25. The annual healthcare conference is often used to gauge sentiment in the space and give some prediction of what to expect from the year ahead.

Before we go into this week, let's rewind 12 months. This is what we took from JPM24 this time last year:

So, how did post JPM24 predictions hold up, and what is the outlook for 2025?

The "cautious optimism" was an accurate outlook both in the sense that there have been reasons to be optimistic, but also still strong negative pressures on the industry.?

Deals - The "recent run of deal making" that was referenced in Jan 2024 continued throughout the year but struggled to get out of first gear. Pharma was more active in 2024 than the prior few years when acquiring $1-10B companies with novel platforms and/or differentiated products, but still making mega transactions at a slow pace by historic standards. The sentiment coming from JPM25 is that pharma is increasingly ready to deploy the hordes of cash it has been sitting on, so reasons to be optimistic about deal making continuing to gain pace remain.

IPOs - The IPO window edged open at the start and end of 2024 meaning we easily surpassed 2023 in terms of amount raised ($3.5B vs $2.5B) and number of IPOs (25 vs 19). However the IPO market is almost exclusively only available for more advances companies and that is not expected to change in 2025.

Shifting investor expectations - The trend of pipeline milestones being a requirement to raise series A funds played out over the course of 2024, much to the detriment of many seeded companies with great platforms that were too far from clinic to raise series A funds. A large portion of the series A raises we have seen in the last 12 months have been for companies who plan to use to the proceeds to take programs into clinic, which I expect to be the norm for 2025.

Consolidation around fewer companies - The industry consultation following the dilution of ideas, talent and financing around too many companies resulted in a year of mega rounds. We have never seen so many companies launch with >$100M and a pipeline of potential blockbuster drugs (many licensed from Asia) in or approaching clinic. However there is concern that the "safer bets" approach is making spaces too crowded and resulting in a lack of innovation for next generation modalities. My prediction for 2025 is a year of balance where big funds continue deploy cash towards asset centric companies while innovation centric funds find ways to invest in novel ideas but with higher levels of discipline.

Layoffs - Layoffs unfortunately did continue at a steady pace throughout 2024 with pressure at both ends of the spectrum. Early biotech companies need to make difficult decisions when approaching the end of their cash runways and bigger biopharma companies are taking the opportunity to make significant pipeline reprioritizations and cost efficiency reductions. Whilst this shows no sign of letting up in 2025, it does feel like the uptick in funding 2024 started to have a positive impact on the biotech labor market towards the end of 2024. So I am hopeful for a more balanced 2025 with layoffs continuing but new hiring projects starting to ease the pressure on biotech job seekers.

So, onto last week!

From JPM25 we saw the first >$10B M&A deal of the year showing that biopharma excited about CNS, as well as two >$1B deals in the targeted oncology space. Several pharma companies also boasted their commitment to M&A in 2025. Three biotech companies launched with seed rounds, and a further 8 companies raised a combined $409M in venture funding. The collaborations announced show that US/China deals will be here to stay in 2025 and positive updates continued to come from biotechs with late stage clinical trials in key spaces.?

Enjoy!?

?? New Biotech Launches & Seed Rounds…

• Cephagenix, a biotech based in Denmark and led by Founder Professor Jes Olesen Jes Olesen, raised up to €9 million in seed funding. The company focuses on developing vascular KATP channel inhibitors for migraine treatment. The funds will advance their lead program toward candidate selection. Link
• RhyGaze AG , a biotech based in Switzerland and, raised a CHF10 million seed funding round. The company pioneers cone optogenetics for vision restoration in blindness. The funds will transition the gene therapy to manufacturing and initiate human clinical trials. Link
• VisiRose , a biotech based in TN, USA and led by CEO Dominic Rodrigues , launched with $3 million in seed financing. The company develops novel ocular therapeutics, focusing on corneal diseases and severe ocular conditions. The funds will advance their lead program, PV-305, through critical regulatory steps. Link

?? Private Raises…

• Umoja Biopharma , a biotech based in WA, USA and led by CEO Andy Scharenberg , raised a $100 million Series C funding round. The company develops in vivo CAR T cell therapies and will use the funds to advance its UB-VV400 and UB-VV111 programs through clinical trials.?Link.
• Be Biopharma , a biotech based in MA, USA and led by CEO Joanne Smith-Farrell , raised a$92 million Series C funding round. The company develops B Cell Medicines for hemophilia B and hypophosphatasia, and will use the funds to advance BE-101 and BE-102 through clinical trials. Link.
• Normunity , a biotech based in CT, USA and led by CEO Rachel W. Humphrey, MD , raised a $75 million Series B funding round. The company develops novel anti-cancer therapies, including the T cell engager NRM-823, and will use the funds to advance NRM-823 into Phase 1 trials and broaden its pipeline. Link.
• Ashvattha Therapeutics, Inc. , a biotech based in CA, USA and led by CEO Jeffrey Cleland , raised a $50 million Series B funding round. The company develops nanomedicine therapeutics for inflammation, cancer, and neurological diseases. The funds will complete its Phase 2 ophthalmology trial and Phase 1/2 neuroinflammation trial. Link
• Bioptimus , a biotech based in France and led by CEO Jean-Philippe Vert , raised an additional $41M in venture funding. The company develops AI foundation models for biology, including H-Optimus-0, and will use the funds to advance its multi-scale, multi-modal foundation model for biology. Link.
• Hinge Bio , a biotech based in the USA and led by CEO Barry Selick , raised a $30 million Series A funding round. The company develops next-generation therapies via its GEM-DIMER platform and will use the funds to advance HB2198 into Phase 1 trials for systemic lupus erythematosus. Link.
• Granata Bio , a biotech based in MA, USA and led by CEO Evan Sussman , raised a $15 million Series A funding round. The company focuses on women's health and infertility, with a pipeline including multiple IVF product classes. The funds will progress its existing pipeline and explore new assets in reproductive health.?Link
• First Ascent Biomedical , a biotech based in FL, USA and led by CEO Jim Foote , raised a $6 million Series A funding round. The company will use the funds to establish a commercial lab and advance its AI- and sequencing-based platform for personalizing cancer treatment. Link

??Research collaborations…

• AbbVie and 先声再明 , a biotech in China, have entered a collaboration to develop SIM0500, a trispecific antibody for multiple myeloma currently in phase 1 trials. The deal is worth $100 million upfront plus up to $1.055 billion in milestone payments.?Link.
• Synthego Corporation , a CRISPR solutions provider based in CA, USA, and 阿斯利康 have entered a collaboration to license the CRISPR gene editing enzyme eSpOT-ON. This state-of-the-art nuclease, developed by AstraZeneca will be paired with Synthego’s best-in-class gRNA to enable improved health outcomes.? Link.
• 罗氏公司 's Regeneron and Truveta , a health data company in WA, USA, have expanded a collaboration to sequence up to ten million patient genomes linked to electronic health records. The deal is worth $119.5 million upfront. Link
• Character Biosciences , a genetics-guided drug discovery biotech based in NJ, USA, and 博士伦 , a global eye health company, have entered a collaboration to develop treatments for age-related macular degeneration. The deal includes an upfront payment, annual research funding, and potential milestone payments. Link
• Orna Therapeutics , a genetic medicines company in MA, USA, and Simnova Biotherapeutics , a biotech in China, have expanded a collaboration to develop BCMA (B-cell maturation antigen)-targeted RNA therapeutics. The partnership leverages Orna's circular RNA technology and Simnova's cell therapy expertise. Link
• BioMed X Institute , a biomedical research institute in Germany, and Daiichi Sankyo , a pharmaceutical company in Japan, have entered a collaboration to develop multi-specific biologics for treating solid tumors. The project will focus on leveraging bi- and tri-specific antibodies to engage multiple targets within the tumor microenvironment.?Link
• REGENXBIO , a genetic medicines company in MD, USA, and Nippon Shinyaku, a pharmaceutical company in Japan, have entered a collaboration to develop and commercialize RGX-121 and RGX-111 for MPS II and MPS I. The deal is worth $110 million upfront plus up to $700 million in milestone payments.?Link

?? M&A…

• 强生公司 is to acquire Intra-Cellular Therapies , a biotech based in NJ, USA developing CNS therapeutics and its lead program CAPLYTA currently approved. The deal is worth $14.6B upfront.?Link.
• 荷商葛蘭素史克藥廠 is to acquire IDRx , a biotech based in MA, USA, developing precision therapeutics for gastrointestinal stromal tumours (GIST) and its lead program IDRX-42 currently in phase I/Ib clinical trials. The deal is worth $1B upfront plus an additional $150M in milestone payments. Link.
• 礼来 and Scorpion Therapeutics , a private biotechnology company developing small molecule precision oncology therapies, announced an agreement for Lilly to acquire Scorpion's PI3Kα inhibitor program STX-478 currently in a Phase 1/2 clinical trial for breast cancer and other advanced solid tumors. The deal is worth up to $2.5B. Link
• Decoy Therapeutics Inc. , a biotech company developing next gen peptide conjugate therapeutics based in MA, USA and previously privately held, merged with publicly traded Salarius Pharmaceuticals to find its way to the NASDAQ. Decoy is leveraging non-dilutive funding and equivalents from federal governments, corporations and The Bill & Melinda Gates Foundation totaling approximately $7M to accelerate clinical development of novel peptide conjugate therapeutics for the treatment of respiratory viruses and cancer. Link

?? Positive clinical development updates…

• BlueRock Therapeutics announced positive data from the Phase 1 trial of its cell therapy Parkinson's disease drug bemdaneprocel. The trial met primary and secondary endpoints, and the drug will now advance to phase 3 studies.?Link.
• 诺和诺德 announced positive topline results from the Phase 3b trial of its GLP-1 receptor agonist obesity drug semaglutide. The trial met primary and secondary endpoints.?Link.
• OS Therapies announced positive topline results from the Phase 2b trial of its HER2-targeted immunotherapy osteosarcoma drug OST-HER2. The trial met primary and secondary endpoints. Link.
• Anavex Life Sciences announced positive topline results from the Phase IIb/III trial of its oral Alzheimer's disease drug blarcamesine. The trial met primary and secondary endpoints.?Link.
• Biohaven announced positive topline results from the Phase 1 trial of its TRAP degrader IgA nephropathy drug BHV-1400.?Link.
• Outlook Therapeutics, Inc. announced positive topline results from the Phase 2b trial of its ophthalmic bevacizumab wet AMD drug ONS-5010. Link.
• Avacta Therapeutics announced positive topline results from the Phase 1 trial of its peptide drug conjugate salivary gland cancer drug AVA6000. Link.
• Inflammasome Therapeutics announced positive topline 3-month data from the Phase 2 trial of its dual inflammasome inhibitor geographic atrophy drug K8. Link.
• Regeneron announced positive data from the Phase 3 trial of its PD-1 inhibitor high-risk cutaneous squamous cell carcinoma drug Libtayo. The topline results showed that the primary endpoint of disease-free survival was met.?Link
• Sling Therapeutics announced positive topline results from the Phase 2b/3 trial of its oral small molecule thyroid eye disease drug linsitinib. The primary endpoint of proptosis reduction was met with statistical significance.?Link

? Regulatory Approvals…

• 阿斯利康 's BTK inhibitor therapeutic Calquence was approved in the US for the treatment of mantle cell lymphoma. Link
• Incyte 's CSF-1R inhibitor therapeutic Niktimvo was approved in the US for the treatment of chronic graft-versus-host disease. Link
• 礼来 's IL-23p19 inhibitor therapeutic Omvoh was approved in the US for the treatment of moderately to severely active Crohn's disease. Link
• AbbVie and REGENXBIO announced positive topline results from the Phase 2 trial of its gene therapy wet AMD drug ABBV-RGX-314. The trial met primary and secondary endpoints.?Link.

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That's all for this week, thanks for tuning in. Subscribe for weekly alerts covering the latest positive news in the biotech industry delivered to your inbox every Monday ????

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About the author:

Max Robinson is an ex-scientist turned talent leader and executive recruiter in the biotechnology industry, and currently Global Head of Discovery, Preclinical & Translational Research at Proclinical Group .

If you are seeking a new role in the biotechnology field or support growing your organization, I am always excited to connect.