Recent Funding:
Frazier Life Sciences (SF) Raises New Venture Fund to Support Biotech Startups
Frazier Life Sciences is raising FLS XII, a new venture fund, following its $987M FLS XI fund in 2022; New Mexico State Investment Council has committed up to $50M. The firm historically allocates 43% of its funds to company creation and prefers 40%+ ownership in startups, backing repeat entrepreneurs in over 60% of deals.
Recent Layoffs:
Atara Biotherapeutics (SF) Halves Headcount Amid FDA Hold on Trials
Atara Biotherapeutics is laying off about 50% of its employees following the FDA’s clinical hold on trials for its allogeneic T-cell immunotherapy Ebvallo and CAR-T candidate ATA3219. The layoffs, costing approximately $3 million, are expected to be completed by June. The clinical hold stemmed from issues related to a third-party manufacturing facility, leading Atara to stop work on the ATA3219 and ATA3431 programs. The company has had previous layoffs in recent years, including 20% in 2022 and 25% in 2023.
ALX Oncology (SF) Lays Off 30% of Workforce to Focus on Key Trials
ALX Oncology is reducing its workforce by 30% to prioritize resources for trials of its CD47 blocker, evorpacept, currently in Phase 2 for advanced head and neck squamous cell carcinoma. The company also plans to seek FDA approval for a new antibody-drug conjugate, ALX2004. Despite a failed Phase 2 trial in gastric cancer, ALX is still considering a registrational path for evorpacept based on earlier data and intends to launch additional trials in breast and colorectal cancers. The layoffs are expected to extend ALX’s cash runway into late 2026.
Other Interesting News:
Kardigan (SF) Secures Ionis’ Antisense Drug for Hypertension
Kardigan, a $300M biotech startup led by former MyoKardia executives, has unveiled tonlamarsen, an antisense medicine for uncontrolled hypertension, acquired from Ionis Pharmaceuticals. The drug is now in a Phase 2 trial comparing a monthly subcutaneous dose to placebo in 700 patients, with results expected in 2027.
Rusfertide, an injectable drug developed by Protagonist Therapeutics and Takeda, met its Phase 3 trial goals by significantly reducing the need for phlebotomy in patients with polycythemia vera, a rare blood disorder. With positive results, the companies plan to submit findings to regulators. Protagonist is set to receive a $25M milestone payment from Takeda, which holds rights outside the U.S., while Protagonist retains co-promotion and profit-sharing rights domestically.
Arcturus Therapeutics (SD) Remains Confident in BARDA Funding for Bird Flu mRNA Vaccine Trial
Arcturus Therapeutics stated it is “highly unlikely” that its $63M BARDA contract for its self-amplifying mRNA bird flu vaccine, LUNAR-H5N1, will be revoked, despite reports of Moderna’s funding being reevaluated. The company’s Phase 1 trial, which began in December with 200 participants, remains on track for an interim readout in the second half of 2025, and Arcturus emphasized its continued collaboration with BARDA and CSL in pandemic preparedness efforts.
Denali Therapeutics (SF) Halts ALS Drug Trial After Another Clinical Failure
Denali’s ALS drug, DNL343, failed to show a treatment effect in a Phase 2/3 trial, showing no improvement in slowing disease progression or secondary outcomes like muscle strength and respiratory function. Despite halting the trial’s extension arm, Denali plans to explore future development opportunities for DNL343 but remains focused on its enzyme replacement therapy for Hunter syndrome, tividenofusp alfa (DNL310).
Arrowhead Pharmaceuticals (LA) Reports Positive Phase 1/2a Data for RNAi Kidney Disease Candidate
Arrowhead’s RNA interference (RNAi) candidate, ARO-C3, was well tolerated in 14 patients with IgA nephropathy (IgAN), with no severe treatment emergent adverse events. ARO-C3 achieved an over 87% mean sustained reduction in complement component 3 (C3) and a 41% reduction in proteinuria, suggesting potential benefits in complement-mediated renal disease.
