MorphoSys AG has upgraded its financial guidance for 2019 following a decision by GlaxoSmithKline Plc to start Phase 3 trials of one of its antibodies. This triggers a €22 million milestone payment to MorphoSys. The German company now expects revenue this year will be between €65-72 million, up from €43-50 million previously, and its loss before interest and tax to narrow to €105-115 million from €127-137 million previously.
The Belgian drug discovery company Confo Therapeutics NV has linked up with a technology provider in Germany to identify a small molecule compound that could modulate an undisclosed G-protein coupled receptor (GPCR) for the purpose of treating disease. Companies have been working for years to effectively target GPCRs, a family of membrane proteins that are involved in a wide range of biological processes and disorders.
The charity Cancer Research UK is to invest $25 million in a biotechnology fund managed by SV Health Investors as part of a partnership aimed at accelerating the development of new oncology drugs.
Under the arrangement, Cancer Research UK will provide at least $25 million to SV Health Investors’ seventh venture capital fund which is expected to raise $250 million. About 60% of the fund’s new capital will be invested in oncology or oncology-related projects.
MODAG GmbH, a new German company focused on neurological diseases, has raised €12 million in a Series A financing round to bring its lead product for multiple system atrophy (MSA) into clinical development. MSA is a rare neurodegenerative disorder characterised by the progressive loss of function and death of different types of nerve cells in the brain and spinal cord. According to the US National Institutes of Health, there are currently no drugs that are capable of slowing the progression of the disease.
Sanifit Therapeutics SA has raised €72.2 million from venture finance and convertible bonds to take its orphan drug candidate SNF472 into Phase 3 development for the treatment of calciphylaxis, a disease where calcium accumulates in small blood vessels in fat and skin tissues. This causes blood clots and serious infections which frequently leads to death.
The fundraising consisted of €55.2 million in Series D finance and €17 million in convertible bonds.
Erytech Pharma SA has teamed up with SQZ Biotechnologies Co, a spin-out of the Massachusetts Institute of Technology, to develop antigen-specific immune modulating therapies for cancer. The collaboration uses Erytech’s technique for encapsulating drug substances inside red blood cells to inform drug development by SQZ. The MIT spin-out is a cell therapy company.
The Spanish pharmaceutical company Almirall SA has received a €120 million loan from the European Investment Bank (EIB) to support research into new treatments for inflammatory and dermatological diseases.
The loan is being granted under a European Commission ‘Investment Plan for Europe’ that is mobilising public funds for new technologies and employment. The company will direct the funds towards research into pathologies such as psoriasis, atopic dermatitis and actinic keratosis, a type of precancerous cutaneous lesion.
AbbVie Inc is making a cash and stock offer valued at $63 billion for the specialty pharma company Allergan Plc, a move that will diversify its portfolio ahead of the loss of patent protection for its lead rheumatoid arthritis product Humira (adalimumab). Humira generated revenue of $20 billion last year, or 68% of AbbVie’s total revenue, but it will lose patent protection in 2023.
The offer is about four times Allergan’s 2018 revenue of $15.8 billion and represents a premium of 45% over the target company’s closing share price on 24 June. Allergan is based in Dublin, Ireland.
Luxembourg-based Vesalius Biocapital Partners has closed its third life science fund, raising €120 million for later-stage European companies. The fundraising includes a commitment of €30 million from the European Investment Fund and new and existing investors from Europe, the Americas and the Middle East and North Africa.
The UK medical charity LifeArc is to make a $30 million equity investment in the antibody therapeutics company Kymab Ltd along with a licencing agreement giving it rights to the company’s drug discovery platform. The investment is taking place in two stages. An initial $10 million has already been paid, while the final $20 million will come at a future date. Kymab will also receive a percentage of revenues that LifeArc generates from any products discovered and commercialised using its technology.