Restructuring

Restructuring Edition: Third Harmonic cut its workforce by half based on positive Phase I data for THB335. Also, encouraged by early Phase IIa results in alopecia areata, Q32 Bio is focusing on bempikibart. In addition, X4, Turnstone, Fractyl, Cargo and others recently revealed layoffs.

CEO Christopher Viehbacher has said repeatedly that Biogen will build its pipeline internally and through deals, and Grogan reshuffled the research organization with that in mind.

Sage’s board of directors initiated a search for strategic alternatives, which could include a sale of the company, but the board rejected a buyout bid from Biogen, its partner on the PPD drug Zurzuvae.

Public Company Edition: Drug developers usually lead up to the J.P. Morgan Healthcare Conference by announcing new financings and partnerships, but multiple companies revealed strategic shifts and layoffs ahead of the industry’s annual kickoff meeting.

Restructuring Edition: Vincerx strategic review ends with a merger, Viracta halts last clinical trial and assesses options, and Achilles completed a strategic review by selling assets to AstraZeneca. Also, Synaptogenix explores opportunities, while GenSight warns its cash is running out.

The company’s CD40 agonist mitazalimab has impressed in Phase II trials as a potential treatment for pancreatic cancer but with no partner in place yet and a lack of funds, Alligator has to cut 70% of its staff to keep going.

Restructuring Edition: Kronos is laying off most of its employees as it considers strategic options, including a potential sale of its assets. Also, Agenus is restructuring and other companies revealed job cuts in Q3 earnings reports, including Sensei, AN2, NextCure and Aurinia.

With a US FDA determination that sotagliflozin cannot be approved for type 1 diabetes at this time, Lexicon is shutting down its commercial organization to focus on its R&D pipeline.

Sage will end development for dalzanemdor after it failed in a Phase II Huntington’s disease trial, leaving the company with one commercial drug and three early-stage assets.

Public Company Edition: Syndax received all $350m from its royalty financing up front, while KalVista got $100m initially out of up to $179m. Also, Vera, EyePoint and Eledon grossed $300m, $161m and $85m in follow-on offerings, while Neurogene raised $200m in a private placement.