Recent Funding:
Deerfield Management (NY) Raises $600M Fund to Back Biotech and Healthcare Startups
The fund will support early drug development, medical devices, and healthcare services, with a strong focus on collaborations with 30+ academic institutions and company creation via its NYC “Cure” campus. Deerfield’s past investments include BridgeBio Oncology, Frontier Medicines, and Perceive Pharma, and it continues to play a key role in launching early-stage therapeutics companies.
Stately Bio (SF) Launches with $12M Seed to Advance ML-Powered Cell Imaging
After three years in stealth, Stately emerges with AI tools that analyze brightfield images of living cells using low-cost microscopes, aiming to replace traditional destructive or complex labeling methods. Led by ex-Calico ML lead Frank Li, the company has shown 3–10x improvements in liver stem cell differentiation and is building models to predict experimental outcomes early.
Axiom (SF) Launches with $15M Seed to Predict Liver Toxicity Using AI
Founded by ex-Uber engineer Brandon White, Axiom claims industry-best accuracy in predicting liver toxicity with its ML model trained on human liver cells and 115,000 molecules. Already piloting with six large pharmas, the startup plans to expand to heart and kidney toxicity next, aiming to reduce reliance on animal and human testing.
Recent Layoffs:
Pliant Therapeutics (SF) Cuts 45% of Workforce Ahead of BEACON-IPF Data
To preserve cash for late-stage trials, Pliant is reducing nearly half its staff while awaiting Phase 2b/3 data on bexotegrast for idiopathic pulmonary fibrosis, expected in Q2 2025. The company remains focused on executing clinical programs across fibrotic and muscular diseases, including small molecule and antibody-based therapies.
Unity Biotechnology (SF) and Mammoth Biosciences (SF) Cut Staff Amid Strategic Shifts
Unity will lay off 100% of staff and explore options including partnerships, sale, or wind-down after UBX1325 failed to match Eylea in diabetic macular edema; execs will shift to consulting roles. Mammoth is laying off 24 employees to streamline operations and focus on internal gene editing programs, including its first clinical candidate backed by Regeneron.
Biomea Fusion (SF) Cuts 35% of Workforce to Focus on Diabetes and Obesity Pipeline
The company is prioritizing oral small molecules icovamenib and BMF-650 while ending internal oncology R&D and consolidating operations to extend cash runway into Q4 2025. IND filing for BMF-650 and multiple Phase II readouts for icovamenib in Type 1 and 2 diabetes are expected in the second half of 2025.
M&A, Deals, Partnerships:
Regulus Therapeutics (SD) Acquired by Novartis in $1.7B Deal to Advance ADPKD Drug
Novartis will acquire Regulus and its lead microRNA inhibitor farabursen for $800M upfront plus $900M in milestone payments; the Phase 1b drug targets miR-17 to treat autosomal dominant polycystic kidney disease (ADPKD). The acquisition aligns with Novartis’ renal disease strategy and builds on promising data showing farabursen’s efficacy in reducing kidney cyst growth and size.
Creyon Bio (SD) Lands Eli Lilly Partnership for RNA-Targeted Oligo Drugs
Lilly has invested $13M upfront in Creyon and could pay over $1B in milestones for a multi-target deal leveraging Creyon’s aptamer-based, ML-driven approach to engineer RNA medicines. Creyon aims to enter the clinic next year for a neuromuscular disease and continues to raise funds via a Series A extension, following a prior neurodegeneration partnership with Cajal Neuroscience.
Following an 83% workforce reduction and leadership exit, Kronos will sell to Concentra for $0.57/share plus CVRs tied to asset sales and cost savings; stock had traded at $0.89 prior to the announcement. The deal follows Tang Capital’s acquisition of Allakos and includes potential upside from Kronos’ discontinued programs, including CDK9 inhibitor istisociclib.
FDA Approvals:
Abeona Therapeutics (Cleveland) Wins FDA Approval for $3.1M One-Time Epidermolysis Bullosa Therapy
Zevaskyn, a single-application cell therapy for severe EB, enters a competitive market alongside Krystal Biotech’s Vyjuvek, which is administered weekly. Despite initial stock dip, analysts project up to $460M in peak sales for Zevaskyn due to its relevance for large, chronic wounds and unmet needs in EB care.
Other Interesting News:
Siren Biotechnology (SF) Launches Crowdfunding Round to Support Gene Therapy R&D
Siren, backed by Founders Fund and Lux Capital, is using WeFunder to raise up to $5M from both accredited and non-accredited investors to advance its preclinical AAV-based immuno-gene therapy for high-grade glioma. The move reflects a novel funding experiment in biotech, with early traction including a $200K commitment from KMAK Capital’s Lynn Fischer.
Amgen (LA) Doubles Down on Biosimilars Amid Pipeline Pressure
Biosimilars now outperform some of Amgen’s branded drugs, with Phase 3 competitors to Keytruda and Opdivo in the works ahead of 2028 patent cliffs. Investor attention shifts to obesity drug MariTide and upcoming ADA data, as biosimilar gains contrast with underwhelming innovation momentum.
BridgeBio (SF) Pushes Ahead with ATTR Cardiomyopathy Drug Amid Big Pharma Competition
Following FDA approval of Attruby in November, BridgeBio is taking on Pfizer and Alnylam in a growing $20B transthyretin amyloidosis market, touting its drug as a potential best-in-class therapy. Despite no head-to-head data, CEO Neil Kumar is confident in the team’s ability to launch and compete globally, with approvals also secured in the EU, U.K., and Japan under the name Beyonttra.
Acelyrin (LA) Faces Shareholder Pushback on Alumis Merger Amid Liquidation Debate
Investor Trium Capital opposes the proposed Alumis merger, arguing Acelyrin’s cash reserves exceed the deal’s value and that liquidation would yield higher returns for shareholders. Acelyrin, which went public in 2023, saw its stock drop after failed trials and rejected a $3/share bid from Tang Capital in favor of the current all-stock merger plan.
19 States and D.C. Sue RFK Jr. Over Mass HHS Layoffs, Accuse Administration of Illegal Dismantling
The lawsuit claims RFK Jr.’s restructuring—including 20,000 layoffs and shuttering of federal health offices—violates the Constitution and Congressional authority, crippling key functions at the CDC, FDA, and other agencies. Plaintiffs seek to block the changes, citing halted disease testing, missed drug deadlines, and suspended public health programs as direct harm from the cuts.
Trump’s 2026 Budget Proposes $18B Cut to NIH, Eliminates DEI, Nursing, and Global Health Programs
The proposal slashes NIH funding from $48.5B to $27B, consolidates 27 institutes into 5, and eliminates support for DEI, nursing science, and global health; $534M from the Minority Health institute would be zeroed out. Critics warn the cuts would cripple U.S. biomedical innovation, undermine public health, and relinquish global leadership, as NIH-backed research generated over $94B in U.S. economic activity last year.
