Recent Layoffs:
Kronos Bio (SF/MA) Announces CEO Transition and Workforce Reduction
Dr. Norbert Bischofberger steps down as President and CEO; Dr. Deborah Knobelman, previously COO and CFO, appointed as President and Interim CEO, effective December 3, 2024. Approximately 83% of Kronos Bio’s employees will be laid off by year-end as part of cost-cutting measures and strategic evaluations.
Alector (SF) Lays Off Staff Following Alzheimer’s Drug Trial Failure
AL002, an antibody drug developed with AbbVie for Alzheimer’s, failed to meet key goals in a clinical trial involving nearly 400 participants, showing no significant improvement over a placebo. Alector will reduce its workforce by 17%, cutting 41 employees. The company has $457 million in cash reserves, sufficient to operate through 2026, despite a $42 million net loss in Q3.
M&A, Deals, Partnerships:
Roche Acquires Poseida Therapeutics (San Diego) for $1 Billion
Roche will pay $9 per share for Poseida Therapeutics, with an additional $4 per share contingent on milestone achievements, valuing the deal at up to $1 billion. The acquisition includes Poseida’s pipeline of cell and genetic therapies targeting cancers (solid tumors and blood cancers) and rare diseases like hemophilia A and hereditary angioedema. The agreement also provides Roche with Poseida’s manufacturing operations and positions the company in the cell therapy space for autoimmune diseases like lupus and multiple sclerosis. The acquisition builds on existing collaborations with Poseida, as well as partnerships with Arsenal Biosciences and Adaptimmune in cancer therapies.
Sarepta Therapeutics (MA) Partners with Arrowhead Pharmaceuticals (Pasadena) in $500M siRNA Deal
Sarepta obtains exclusive global rights to four clinical-stage and three preclinical-stage programs targeting rare diseases in muscle, CNS, and pulmonary disorders, including DM1 and FSHD. The deal includes $500M upfront and $325M equity investment in Arrowhead at a 35% premium, with potential milestones and royalties. The partnership diversifies Sarepta’s portfolio, complementing its gene therapy and editing capabilities while expanding into chronic treatment models.
Acadia Pharmaceuticals (California) Announces License Agreement for SAN711.
Acadia Pharmaceuticals has obtained an exclusive license for SAN711 from Saniona (EU), a GABA-A alpha-3 receptor modulator being developed to treat rare neuropathic and neuroinflammatory disorders. The drug is in preclinical stages, targeting pain management and rare neurological diseases with plans for further development in the U.S. Acadia will pay $8 million upfront, with additional milestone payments and royalties based on the program’s success.
Olema Oncology (SF) Teams with Novartis for New Breast Cancer Drug Trial
Olema will investigate its drug palazestrant with Novartis’ Kisqali in a Phase 3 trial for ER+/HER2- metastatic breast cancer in 1,000 patients. Data and inventions will be jointly owned, but Olema retains global rights to palazestrant. Olema raised $250M in a private placement from investors including Adage Capital Partners and Bain Capital Life Sciences, supporting multiple trials including the OPERA-02 study and other ongoing programs. Additional trials include Phase 1/2 studies of OP-3136 (a KAT6A/B-selective inhibitor) and a monotherapy Phase 3 trial for palazestrant.
Other Interesting News:
President-elect Donald Trump Names Jay Bhattacharya as NIH Director
Trump has selected Jay Bhattacharya, M.D., Ph.D., from Stanford University, to lead the National Institutes of Health (NIH). Bhattacharya is known for opposing pandemic lockdowns and advocating for herd immunity. Bhattacharya is the director of Stanford’s Center on the Demography and Economics of Health and Aging. If confirmed, he will succeed Monica Bertagnolli, M.D., with a focus on reforming NIH leadership and policies.
FDA Rejects Applied Therapeutics’ Govorestat for Classic Galactosemia
The FDA denied approval for govorestat, Applied Therapeutics’ treatment for classic galactosemia, citing application deficiencies. This comes after a phase 3 trial missed its primary endpoint, though it showed potential benefits like reduced galactitol levels. Applied plans to meet with the FDA to explore resubmission or appeal options. Separately, the company aims to file govorestat for SORD deficiency approval in Q1 2025. The announcement caused Applied’s shares to drop significantly, reflecting market concerns over the lack of clarity on FDA’s decision and potential setbacks.
