Recent Funding:
Montara Therapeutics (SF) Expands Seed Round to $28M for CNS Drug Development
Montara raised an additional $20M, bringing its total seed funding to $28M, to advance its preclinical CNS pipeline, including an epilepsy candidate and a neurodegenerative program. The biotech’s BrainOnly platform aims to improve drug safety by preventing side effects outside the brain, with plans for an IND submission within 12 months and a potential strategic partnership before a Series A raise in 2026.
Vivace Therapeutics (SF) Raises $35M Series D to Advance Small Molecule Cancer Therapy
Vivace secured $35M led by RA Capital to support the development of VT3989, a first-in-class TEAD autopalmitoylation inhibitor targeting the Hippo pathway for mesothelioma. VT3989 has shown promising efficacy and safety in Phase 1 trials, with plans to advance into a registrational Phase 3 study following FDA discussions later this year.
Fauna Bio (SF) Plans $40M Series A to Advance Heart Failure Drug
Fauna Bio aims to raise $40M to advance FAUN1083, a heart failure drug inspired by cardiac protection in squirrels, into early human trials in 2026. The biotech has partnered with Eli Lilly on obesity research and previously collaborated with Novo Nordisk, leveraging its platform to uncover disease resistance mechanisms from animal biology.
Latigo Biotherapeutics (LA) Raises $150M Series B to Advance Pain Drug Pipeline
Latigo secured a $150M Series B led by Blue Owl Capital to fund its NaV1.8-targeting pain therapies, including lead candidate LTG-001, currently in Phase 2 trials for acute pain. The funding extends Latigo’s cash runway through key readouts, including Phase 3 data for LTG-001 and proof-of-concept results for its chronic pain candidate LTG-305.
Recent Layoffs:
Sutro Biopharma (SF) Cuts 50% of Workforce, Shifts Focus to Next-Gen ADCs
Sutro is deprioritizing its lead ADC candidate, luveltamab tazevibulin (luvelta), and exiting its San Carlos manufacturing facility to extend its cash runway into late 2026. New CEO Jane Chung will lead the company’s pivot toward next-gen ADC programs, with plans to file three INDs over the next three years, starting with an exatecan tissue factor ADC for solid tumors.
M&A, Deals, Partnerships:
Ionis Pharmaceuticals (SD) Licenses RNA Drug for Polycythemia Vera to Ono for Up to $940M
Ionis will receive $280M upfront and up to $660M in milestone payments from Ono Pharmaceutical for sapablursen, an RNA-targeting therapy in Phase 2 trials for polycythemia vera. Ionis retains responsibility for the Phase 2 study, while Ono will lead later-stage development and commercialization, with Ionis set to receive mid-teen percentage royalties if approved.
Viking Therapeutics (SD) Secures $150M Manufacturing Deal for Obesity Drug
Viking will prepay CordenPharma $150M to secure large-scale production capacity for its obesity drug VK2735, including 200M injectable and 1B oral doses annually. The agreement supports late-stage testing and potential commercialization, ensuring Viking can compete with obesity drug leaders like Novo Nordisk and Eli Lilly.
IPOs:
Tarsus Pharmaceuticals (OC) Announces $100M Public Offering to Support Pipeline Expansion
Tarsus is launching a $100M public offering, with an option to raise an additional $15M, to fund ongoing development in eye care and infectious disease prevention. The company’s pipeline includes TP-04 for ocular rosacea and TP-05, an oral treatment for Lyme disease prevention, alongside its FDA-approved Demodex blepharitis drug, XDEMVY.
Other Interesting News:
Pliant Therapeutics (SF) and Acelyrin (LA) Implement Poison Pill Defenses
Both biotechs adopted shareholder rights plans to prevent hostile takeovers following Concentra Biosciences’ increasing stake, with Tang Capital Partners nearing 10% ownership in each. Acelyrin rejected Concentra’s buyout offer in favor of merging with Alumis, while Pliant aims to protect its board’s ability to act in shareholders’ best interests amid challenges with its fibrosis drug, bexotegrast.
Orca Bio (SF) Reports Positive Phase 3 Results for Orca-T in Blood Cancers
Orca-T met its primary endpoint, showing a 78% survival free of moderate-to-severe chronic graft-versus-host disease (cGvHD) vs. 38% with standard stem cell transplant, with a 94% overall survival rate at one year. The company plans to submit a Biologics License Application (BLA) to the FDA in 2025, potentially setting a new standard for allogeneic T-cell immunotherapy in AML, ALL, and MDS.
Avidity Biosciences (SD) Shares New Data on RNA-Based DMD Therapy
Phase 1/2 results for delpacibart zotadirsen (del-zota) show most adverse events were mild to moderate, easing prior concerns over anaphylaxis and infusion-related reactions that led to early trial dropouts. Treatment increased dystrophin production by 25% and reduced creatine kinase levels by up to 80%, with a Biologics License Application submission planned for late 2025.
