Recent Funding:
Polaris Partners Targets $500M New Fund to Fuel Biotech Investing
Longstanding life sciences investor Polaris is raising a new fund bigger than its last, signaling renewed confidence in biotech markets. Polaris has backed 400+ companies and helped bring over 50 therapies to market.
Electra Therapeutics (SF) Raises $183M to Advance Rare Immune Disorder Antibody
Funding will support a Phase 2/3 trial of ELA026, which aims to calm dangerous immune overactivation in secondary HLH; early data showed a 100% survival rate in a small study. The biotech will also move a second SIRP-targeting antibody, ELA822, into the clinic for T-cell–driven diseases.
Recent Layoffs:
Alector (SF) Halves Workforce After Dementia Drug Fails Phase 3
Lead antibody latozinemab missed a key efficacy goal in frontotemporal dementia, prompting Alector to shut down the program and cut 49% of staff. The biotech will shift focus to nivisnebart, another GSK-partnered antibody with Phase 2 data expected in 2026.
M&A, Deals, Partnerships:
Akero Therapeutics (SF) Acquired by Novo Nordisk for Up to $4.7B
Novo initially walked away from a deal before returning with a revised offer, ultimately acquiring Akero for $54/share upfront plus a $6/share milestone tied to FDA approval of its MASH drug. The move strengthens Novo’s cardiometabolic pipeline as competition heats up in MASH — with at least 10 pharma companies showing interest in the space.
Adverum Biotechnologies (SF) to Be Acquired by Eli Lilly in Gene Therapy Deal
Lilly is buying Adverum at a discount to expand into eye gene therapies, with milestones that could lift the deal value up to $350M based on approval and sales of its wet AMD treatment. Lead program ixo-vec is in Phase 3, with data expected in 2027, aiming to offer a one-time therapy for millions with age-related vision loss.
Avidity Biosciences (SD) to Be Acquired by Novartis in $12B Deal
Novartis is buying Avidity for $12B to expand its RNA medicine pipeline, including three late-stage drugs for muscular dystrophies expected to reach the FDA by end of 2026. Avidity will also spin out its early precision-cardio programs into a new public company with $270M in funding and continued partnerships with BMS and Lilly.
IPOs:
MapLight Therapeutics (SF) Lands $250M IPO to Advance Schizophrenia Drug
MapLight debuted on Nasdaq to fund Phase 2 trials of its muscarinic schizophrenia therapy ML-007C-MA, plus studies in Alzheimer’s disease psychosis and autism. The company aims to compete with Bristol Myers’ Cobenfy as CNS drug development gains momentum among investors.
Other Interesting News:
Arcturus Therapeutics (SD) Reports Mixed Phase 2 Update for Inhaled CF mRNA Therapy
ARCT-032 did not show improvement in lung function after 28 days, sending shares down over 50%, though the treatment was generally well tolerated. Early signs of reduced mucus buildup in most patients suggest biological activity, with longer studies planned to test higher doses and longer duration.
Inhibrx Biosciences (SD) Achieves Phase 2 Success in Rare Bone Cancer
Antibody ozekibart cut the risk of tumor progression or death by 52% in advanced chondrosarcoma, with plans to seek FDA approval in mid-2026. Additional early data showed encouraging responses in Ewing sarcoma and colorectal cancer, supporting expansion into more solid tumors.
Terns Pharmaceuticals (SF) Halts Oral Obesity Drug After Weak Phase 2 Data
GLP-1 candidate TERN-601 showed modest weight loss and notable side effects, plus signs of liver injury, prompting Terns to stop investment and seek a partner. The biotech will now prioritize its leukemia drug TERN-701, with Phase 1 data expected this year.
Ventyx Biosciences (SD) Shows Strong Heart Health Signals with NLRP3 Inhibitor
Phase 2 results showed significant reductions in inflammatory and cardiovascular risk markers — including a 64% drop in hsCRP — with safety comparable to placebo. The future of VTX3232 may depend on Sanofi, which holds first negotiation rights to the program.
Xencor (LA) Shows Early Promise for First-in-Class Kidney Cancer Drug
In a Phase 1 trial, XmAb819 shrank tumors or stopped growth in 70% of advanced kidney cancer patients, with a 25% response rate in the target dose range. The treatment was generally well-tolerated, and Xencor plans to move into Phase 3 preparation in 2026.
BridgeBio (SF) Reports Positive Phase 3 Results in Rare Muscular Dystrophy
BridgeBio’s drug BBP-418 improved both muscle-protecting protein levels and patient mobility/breathing in a Phase 3 study for a rare form of muscular dystrophy. With strong results, the company will ask the FDA if it can pursue full approval sooner than expected, aiming to file by mid-2026.
