Finance, Grants, Deals

GSK Plc is to expand its portfolio of products for the treatment of liver disease with the acquisition of an asset to treat and prevent the progression of steatotic liver disease (SLD), formerly known as fatty liver disease. Announced on 14 May, the deal features an upfront payment of $1.2 billion for the asset with potential for additional success-based milestones of $800 million. The liver disease affects a significant percentage of the global population and is mainly driven by obesity, type 2 diabetes, and alcohol intake, according to a 2024 review in The Lancet. 

A consortium led by Jeito Capital of France has raised €132 million in new funds for Azafaros BV of the Netherlands enabling it to advance an experimental compound for rare metabolic disorders into Phase 3. Co-leading the Series B round was Forbion, whose operating partner Carlo Incerti is chair of the company’s board of directors. Joining the board as a new member will be Audrey Cacaly, a principal at Forbion Growth, which is a fund supporting late-stage assets.

TILT Biotherapeutics Ltd has raised €22.6 million from the European Innovation Council and other investors to bring its oncolytic virus therapy for patients with ovarian cancer into Phase 2. The funding will also support earlier studies for the product, TILT-123, in other indications.  TILT-123 is an oncolytic adenovirus encoding tumour necrosis factor alpha and interleukin 2. It is designed to work alongside T cell therapies and immune checkpoint inhibitors to target and kill cancer cells.

Novartis is to pay up to $1.7 billion to buy Regulus Therapeutics Inc of San Diego, US, in a deal that will strengthen its portfolio of treatments for kidney disease. The deal also puts a spotlight on microRNA, a drug target that affects gene expression without coding for a protein. Regulus has an early clinical stage product for autosomal dominant polycystic kidney disease, a serious genetic disorder that can lead to end-stage renal disease. The product, farabursen, is an oligonucleotide designed to inhibit a microRNA known as miR-17.

Isomorphic Labs Ltd, a pioneer in the use of artificial intelligence for drug discovery, announced a capital raise of $600 million on 31 March, the company’s first external financing since its launch in 2021. Isomorphic is a spin-out of the DeepMind laboratory of Alphabet Inc, the parent of Google, and led by Demis Hassabis, a Nobel laureate. DeepMind is the developer of the AlphaFold artificial intelligence programme. Isomorphic will use the new funds to develop a portfolio of drugs both in-house and in partnership with Novartis and Eli Lilly and Co.

The UK biotech Epsilogen has significantly expanded its repertoire of antibody technologies with the acquisition of TigaTx Inc, of Boston, US, in order to treat more patients with cancer. The deal, announced on 7 April, equips Epsilogen, a clinical-stage company, with technology and assets of the IgA antibody subtype. These activate neutrophils, a type of white blood cell that is an essential part of the immune system. Epsilogen already has IgG antibody assets, the most abundant subtype, and IgE assets, a less common isotype which can activate macrophages.

GSK Plc has entered into a licensing agreement with ABL Bio Inc of South Korea for rights to a delivery platform for carrying prospective drugs across the blood-brain barrier to treat neurodegenerative diseases. The deal, valued at up to £2.15 billion, is one of the company’s largest transactions, reflecting its interest in treating diseases of the brain.

A prospective vaccine against infection from the Nipah virus moved closer to clinical development on 21 March with the award of $13.38 million from the Coalition for Epidemic Preparedness Innovations (CEPI). The new grant follows $3.6 million in funding in 2023, bringing total cash available to $16.98. CEPI, a public-private partnership, is working with Gennova Biopharmaceuticals Ltd of India and the US-based Houston Methodist Research Institute on the project, which will deliver a self-amplifying messenger RNA (mRNA) vaccine to the market.

MaaT Pharma SA of France expects to make its first regulatory submission to the European Medicines Agency in June following a successful Phase 3 trial of its microbiome therapy and a capital increase of €13 million from a private share placement. The capital increase was announced on 27 March, not long after the company reported the latest clinical data for its therapy. The therapy, MaaT013, is being developed for patients with acute graft-versus-host disease with gastrointestinal involvement. 

Owlstone Medical Ltd is to receive an equity investment of up to $2.3 million from the US Cystic Fibrosis Foundation to develop a new breath test to detect a bacterial infection in patients with cystic fibrosis. The UK company has developed technology that can detect biological information from volatile organic compounds and respiratory droplets in breath. The newest project will involve developing a test for Pseudomonas aeruginosa, a Gram negative bacterial infection that can be particularly dangerous for people with compromised immune systems.