Recent Funding:
ReCode Therapeutics (SF) Raises $29M+ to Advance mRNA and Gene Therapy Programs
ReCode secured over $29M in new funding, with the Cystic Fibrosis Foundation adding $3M to support its Phase 2 trial of RCT2100, an inhaled mRNA therapy for cystic fibrosis. The company also launched a research collaboration with Praxis Precision Medicines to develop lipid nanoparticles that improve delivery of antisense oligonucleotides (ASOs) to the brain.
Mission BioCapital Raises $134M for Sixth Biotech Fund
Mission BioCapital closed $134M for its sixth fund, backing early-stage biotechs like March Biosciences, Tune Therapeutics, and Dren Bio. The new fund is smaller than its prior $275M raise in 2021, reflecting tighter biotech venture funding, though Mission continues supporting 26 shared lab spaces across the US and Europe.
Sanofi Ventures Expands Biotech Investment Arm with $625M Boost
Sanofi added $625M to its venture arm, bringing assets under management to $1.4B, with more than $800M already deployed across 70 biotech and digital health startups. Recent wins include acquisitions of portfolio companies Escient, Aliada, and Inozyme; Sanofi Ventures continues investing from seed through IPO, with a focus on therapeutics (80%) and areas like immunology, rare disease, and neuroscience.
Recent Layoffs:
Arsenal Biosciences (SF) Lays Off Half Its Staff Amid Funding Crunch
ArsenalBio, a cell therapy biotech backed by ARCH, Nvidia’s VC arm, and the Parker Institute, is cutting about 127 jobs to extend runway after raising $325M last year. The company is still running a Phase 1/2 trial for kidney cancer, plans to file an IND for a prostate cancer therapy this year, and continues select partnerships despite pausing other programs.
M&A, Deals, Partnerships:
89bio (SF) Acquired by Roche in $3.5B Deal for MASH Therapy
Roche is acquiring 89bio for up to $3.5B, gaining its Phase 3 candidate pegozafermin (an FGF21 analog) for metabolic dysfunction-associated steatohepatitis (MASH). The deal includes $14.50 per share in cash plus up to $6 per share in milestone payments; 89bio employees will join Roche’s pharma division.
Gilead Sciences (SF) Licenses Encequidar for Virology from Health Hope Pharma
Gilead paid $10M upfront (plus up to $72.5M in milestones) for global rights to encequidar, a P-gp inhibitor, in virology indications. The drug may boost absorption of certain antivirals, potentially enhancing efficacy for HIV and hepatitis C treatments
Other Interesting News:
Trump Administration’s $100K H-1B Visa Fee Could Impact Biopharma Talent
New rule requires companies to pay $100,000 for new H-1B petitions, aiming to limit foreign worker sponsorship. Critics warn this could squeeze biotech hiring, making it harder for startups to attract specialized talent needed for innovation.
NIH Launches $87M Organoid Center to Advance Drug Testing Alternatives
NIH awarded $87M over three years to establish the Standardized Organoid Modeling (SOM) Center, focused on creating lab-grown human organ models (liver, lung, heart, intestine) to accelerate drug discovery and reduce reliance on animal testing. The center will support FDA and industry by providing standardized, reproducible organoid models, leveraging AI, robotics, and open-access repositories to improve preclinical testing.
Eli Lilly Opens New Gateway Labs Site in San Diego
Lilly launched an 82,500 sq. ft. incubator in Torrey Pines, designed to host up to 15 early-stage life sciences companies and 250+ employees. The co-working lab model supports biotech startups with space, collaboration opportunities, and access to Lilly’s expertise; Gateway Labs companies have already raised $2B+ to advance 50+ therapeutics.
