Recent Funding:
Gate Bioscience (SF) Raises $65M to Advance “Molecular Gate” Protein Degraders
Gate Bioscience secured $65M in Series B funding from investors including Forbion, Eli Lilly, a16z, ARCH, and GV to move its novel small-molecule “molecular gate” degraders into human trials. The biotech’s approach blocks disease-causing proteins as they exit cells, with its lead program in prion disease and additional efforts in immunology and inflammation; funding is expected to support operations through 2028.
Solve Therapeutics (SD) Raises $120M to Advance Next-Gen ADC Cancer Therapies
Solve Therapeutics, founded by the former VelosBio team, raised $120M to advance two antibody-drug conjugates (SLV-154 and SLV-324) now in early clinical trials for solid tumors. The biotech’s new linker technology is designed to make ADCs safer and more effective by preventing premature toxin release and improving drug delivery to tumors.
Recent Layoffs:
Metagenomi (SF) Cuts 25% of Staff to Prioritize Gene Editing Program for Hemophilia A
Gene editing biotech Metagenomi is laying off a quarter of its workforce, including CEO and co-founder Brian Thomas, to focus on its preclinical hemophilia A therapy, MGX-001, which showed promising results in primate studies. The company’s president Jian Irish will step in as CEO, while resources shift toward advancing MGX-001 and other gene-editing programs under its $3B collaboration with Ionis Pharmaceuticals.
Kite Pharma (SD) Lays Off 17 Employees Amid Paused Manufacturing Expansion
Gilead’s Kite Pharma will cut 17 positions in Oceanside as part of a paused expansion of its biologics manufacturing operations, shifting affected roles to Foster City. The move follows earlier layoffs of five employees in August, with Kite citing efforts to realign resources to support near-term oncology and virology launches.
M&A, Deals, Partnerships:
Day One Pharmaceuticals (SF) Acquires Mersana Therapeutics in $285M Deal for ADC Emi-Le
Day One Pharmaceuticals is acquiring Mersana Therapeutics for up to $285 million, gaining rights to Emi-Le (XMT-1660), a B7-H4–targeting antibody-drug conjugate showing promise in triple-negative breast cancer. The deal includes $25 per share in cash and up to $30.25 per share in milestone payments, expanding Day One’s oncology portfolio alongside its approved childhood brain tumor drug, Ojemda.
Cidara Therapeutics (SD) Acquired by Merck in $9.2B Deal for Flu Biologic
Merck is buying Cidara Therapeutics for $9.2B, gaining full rights to CD388, a late-stage biologic designed to prevent seasonal influenza. The deal marks one of Merck’s largest respiratory acquisitions as it looks to diversify beyond Keytruda, with Phase 3 data for CD388 expected in early 2026 following a recent $339M BARDA award to support U.S. manufacturing.
Merus & Halozyme (SD) Partner to Develop Subcutaneous Cancer Therapy
Merus will use Halozyme’s ENHANZE® technology to create a subcutaneous version of its bispecific antibody petosemtamab, a promising treatment for head and neck cancer and other solid tumors. The partnership aims to make cancer treatment faster and more convenient for patients, with Halozyme receiving upfront and milestone payments plus royalties on future sales.
Other Interesting News:
CeleCor’s zalunfiban, a subcutaneous antiplatelet therapy designed for use by first responders in heart attack emergencies, cut the risk of severe heart attack, death, or stroke by 21% in Phase 3 trials without increasing major bleeding. The drug acts within 15 minutes and wears off after about two hours, positioning it as a potential first-line emergency treatment for STEMI heart attacks, with an FDA filing planned for early 2026.
Neurocrine Biosciences (SD) Depression Drug Fails Midstage Trial
Neurocrine’s NBI-1070770, licensed from Takeda, failed to outperform placebo in a Phase 2 study for major depressive disorder, though the drug was well tolerated. This marks another setback from the 2020 Takeda partnership, though Neurocrine continues to see progress with other assets like osavampator, which recently succeeded in a separate Phase 2 depression trial.
Siolta Therapeutics (SF) Reports Positive Phase 2 Data for Infant Allergy Prevention Therapy
Siolta’s oral microbiome therapy STMC-103H cut the risk of atopic dermatitis by 64% and food allergy by 77% in infants who completed one year of treatment, showing strong safety and consistent results. The therapy aims to train the immune system early by restoring healthy gut bacteria, potentially preventing chronic allergic diseases like eczema, asthma, and food allergies before they start.
Terray Therapeutics (LA) Unveils AI Model That Outperforms Human Chemists
Terray launched its EMMI platform, revealing an AI-driven selection model that chose drug candidates two-thirds faster and cheaper than expert chemists, potentially shaving 6–12 months off discovery timelines. The company plans to open-source the model and advance its own pipeline, including a brain-penetrant multiple sclerosis drug expected to reach the clinic by 2026–2027.
