Finance, Grants, Deals

The radiopharmaceutical sector has a new player following an agreement between Bristol Myers Squibb Co and RayzeBio Inc to combine forces to give BMS a new portfolio of experimental treatments for cancer focusing on solid tumours. Based in San Diego, US, RayzeBio is a Nasdaq listed company which was founded in 2020 to develop a treatment for patients with gastroenteropancreatic neuroendocrine tumours (GEP-NET), or tumours of the gastrointestinal tract. The company’s assets also include potential treatments for small cell lung cancer, hepatocellular carcinoma, and renal cell cancer.

AstraZeneca Plc is to expand its pipeline of cell and gene therapies with the acquisition of the China-based company Gracell Biotechnologies Inc which has a chimeric antigen receptor (CAR) T cell therapy in development for multiple myeloma. The deal value is $1.2 billion which includes an upfront cash payment as well as potential contingent value payments linked to the achievement of an undisclosed regulatory milestone. The transaction is expected to close in the first quarter of 2024.

Bristol Myers Squibb Co is to acquire the Boston, US, based company Karuna Therapeutics Inc for $14 billion in order boost its presence in neuroscience. Karuna has a candidate product for schizophrenia in registration at the US Food and Drug Administration which is expected to come up for a decision on 26 September 2024. If approved, it would provide new revenue for BMS whose other neuroscience products are currently in Phase 1.

France-based Sofinnova Partners is to take a direct role in creating new biotech companies in Europe in order to accelerate the development of novel medicines for patients. The strategy, announced on 13 December, follows similar moves by other venture capitalists who are seeking to capture the value of healthcare innovations early and guide development to a successful conclusion. Sofinnova did not disclose the size of its investment in the project which is called Biovelocita.

However it did say that the strategy has already been successful in Italy.

Switzerland-based BC Platforms AG is to increase its capacity as a provider of healthcare data to the pharmaceutical industry with the acquisition of Medexprim SAS of France. The financial terms of the transaction, which was announced on 7 December 2023, were not disclosed.

AstraZeneca Plc is to acquire Icosavax Inc of Seattle, US, a developer of virus-like particle (VLP) vaccines in a bid to strengthen its late-stage pipeline for candidate vaccines and immune therapies. The deal, valued at up to $1.1 billion if all contingent requirements are met, will build on the UK company’s experience developing two products for the prevention of respiratory syncytial virus (RSV), a major cause of acute respiratory infection in individuals of all age groups.

AbbVie Inc is to expand its neuroscience pipeline with the acquisition of Cerevel Therapeutics LLC of Cambridge, US, which has a clinical-stage product for schizophrenia targeting a receptor that regulates signalling in the brain. Announced on 6 December, the deal is valued at $8.7 billion and comes only a week after AbbVie disclosed plans to buy ImmunoGen Inc, a company with antibody-drug conjugate products for cancer. The ImmunoGen deal is valued at $10.1 billion.

The Roche Group has joined the cohort of companies developing new drugs for weight loss and obesity with a decision to acquire Carmot Therapeutics Inc of California, US whose lead product is a Phase 2-ready synthetic peptide for the treatment of obesity. Under the terms of the agreement, Roche will pay $2.7 billion upfront with a further $400 million on the achievement of certain milestones.

Freeline Therapeutics Holdings Plc, a UK gene therapy company, is to become a private company once again following an agreement with a portfolio company of Syncona, its majority shareholder and co-founder, to acquire all of the shares that Syncona doesn’t already own. Syncona co-founded Freeline in 2015 with the aim of developing gene therapies for chronic debilitating diseases. In 2020, Freeline went public with the issue of 8.8 million American Depositary Shares (ADSs) on the US Nasdaq market, raising $158.8 million.

Netherlands-based VectorY Therapeutics has raised €129 million in a Series A financing round to support the clinical development of a product for amyotrophic lateral sclerosis (ALS) based on vectorised antibodies. Co-led by EQT Life Sciences and the Forbion Growth Opportunities Fund, the money will be used to develop VTx-002 and other programmes for neurodegenerative diseases.