Recent Layoffs
Viracta Therapeutics (SD) to Cease Operations, Lays Off Entire Workforce
Viracta Therapeutics, a clinical-stage precision oncology company focused on the treatment and prevention of virus-associated cancers that impact patients worldwide, announced today that the Company has terminated its employees and will wind down operations and lay off all 16 employees. The company seeks a buyer for its Epstein-Barr virus-linked cancer therapy. Viracta went public in 2020 and had $13 million in cash at the end of September.
Frontier Medicines (SF) Refocuses Operations Amid Workforce Reductions
Frontier Medicines is cutting an unspecified number of staff to streamline operations and optimize resources. The California-based biotech aims to stay well-capitalized as it advances its lead asset, FMC-376, an oral KRAS G12C dual inhibitor currently in a Phase 1/2 trial for solid tumors. The company, which raised $80 million in a challenging Series C in February 2024, is leveraging its covalent chemistry and machine learning platform to differentiate itself from competitors like Mirati Therapeutics.
M&A, Deals, Partnerships
Alumis (SF) and ACELYRIN (LA) Merge to Form Late-Stage Biopharma Focused on Immune-Mediated Diseases
Alumis and ACELYRIN announced a merger to create a biopharma company advancing late-stage therapies for immune-mediated diseases, with a combined cash position of $737M to fund operations into 2027. Alumis’ lead candidate, ESK-001, targets TYK2 for plaque psoriasis and lupus, with Phase 3 and Phase 2b data expected in 2026. ACELYRIN’s lonigutamab, a subcutaneous anti-IGF-1R for thyroid eye disease, will continue development under Alumis. The merged company will retain the Alumis name, led by the current Alumis executive team, and operate from South San Francisco.
Roche has sold InterMune and the U.S. rights to Esbriet (pirfenidone), its idiopathic pulmonary fibrosis (IPF) drug, to Cayman Islands-based Legacy Pharma. Esbriet, Roche’s only product from InterMune, has faced declining sales due to generic competition and now has a new owner in Legacy, which aims to continue distribution of the drug in the U.S. Legacy Pharma, led by Mark Thompson, has previously acquired other pharmaceutical assets and plans to expand its portfolio, including acquiring products from Sebela Pharmaceuticals.FDA Approvals:
FDA Approves Emblaveo, AbbVie and Pfizer’s New Antibiotic for Tough-to-Treat Infections
The FDA approved Emblaveo, a combination antibiotic from AbbVie and Pfizer, for adults with complicated intra-abdominal infections who have limited or no other treatment options. Emblaveo, combining aztreonam and avibactam, is effective against gram-negative bacteria like E. coli and Klebsiella pneumoniae. The approval follows Phase 3 data showing similar cure and mortality rates compared to meropenem. AbbVie will market the drug in the U.S. and Canada, with Pfizer handling global markets.
Other Interesting News
Tariffs Threaten U.S. Generic Drug Supply Amid Industry Push for Exemptions
The Trump administration’s 10% tariff on Chinese imports raises concerns about higher costs and potential shortages in the generic and biosimilar drug markets, as China retaliates with its own levies. The Association for Accessible Medicines warns that many generics rely on Chinese active pharmaceutical ingredients, making quick pivots difficult. Advocacy groups like the American Hospital Association are lobbying for tariff exemptions to maintain the flow of critical drugs, especially those already in short supply.
Pliant Therapeutics (SF) Halts Fibrosis Drug Study, Shares Plunge Over 60%
Pliant Therapeutics paused enrollment and dosing in its Phase 2b/3 trial for bexotegrast in idiopathic pulmonary fibrosis after clinical monitors advised a halt, leaving the drug’s future uncertain. The company is reviewing data to understand the rationale behind the committee’s recommendation, with current participants remaining in the blinded trial under monitoring. This unexpected move sparked speculation about potential safety concerns or inefficacy, leading to a dramatic stock drop to its lowest levels since Pliant’s 2020 IPO.
Federal Court Temporarily Blocks New NIH Indirect Cost Cap
A federal court in Massachusetts granted a temporary restraining order, halting the NIH’s proposed 15% cap on indirect cost reimbursements for NIH grant recipients in 22 states. The lawsuit, filed by 22 state attorneys general and supported by various medical and academic organizations, argues that the cap would severely hinder public health research and violate statutory regulations. States involved include California, New York, Michigan, and others, with some institutions like the University of Massachusetts Chan Medical School potentially losing $40–50 million annually.
Bioluminescence Ventures (SF) Closes After Less Than Two Years Despite Raising $477 Million
Bioluminescence Ventures, a life science investment firm founded in November 2023, will close its doors after raising nearly half a billion dollars across two funds. The firm’s main investor, Hanwha Group, a South Korean conglomerate, forced the dissolution of both funds due to changed financial circumstances, leading to the firing of the entire Bioluminescence team. Bioluminescence had invested in early-stage biotech companies, including GEMMA Biotherapeutics and Ensoma, and was led by founder Kouki Harasaki, with Campbell Murray recently leaving for a new role at Double Point.
