The rising 10-year yield to above 4.6% on geopolitical tensions pressured the S&P Select Biotech Index into the red for the year.
The move lower comes despite Vertex Pharmaceuticals' (VRTX) announcement of their largest M&A deal ever ($4.9B / $65/share).
The third consecutive hot CPI print added to the debate for when rate cuts might materialize. Volatility can often furnish opportunity as many SMID biotechs are trading at or near 52-week lows, having not participated in the recent relief rally.
M&A:
Vertex Pharmaceuticals (VRTX) announced the acquisition of Alpine Immune Sciences (ALPN) for $4.9B. The deal is focused on lead drug povetacicept, a dual BAFF/APRIL inhibito,r being developed for a whole suite of autoimmune indications including IgA nephropathy (IgAN). Phase 3 trials are expected to start in 2H 2024
Harmony Biosciences (HRMY) will pay French pharmaceutical company Bioprojet an upfront license fee of $25 million, milestone payments (development/regulatory up to $127 million, sales-based up to $240 million), and mid-teens royalties for TPM-1116, an oral orexin-2 agonist for the treatment of narcolepsy and other sleep/wake disorders
Regulatory:
Neumora Therapeutics (NMRA) announced the P1 trial for M4 muscarinic receptor modulator NMRA-266 was placed on clinical hold due to pre-clinical data showing convulsions in rabbits.
Clinical:
Marinus Pharmaceuticals (MRNS) traded down ~75% on news the Phase III RAISE trial of IV ganaxolone in RSE life-threatening seizures did not meet the pre-defined stopping criteria at interim analysis. The company is instituting cost cutting measures and plans to run the trial to completion in the summer of 2024 before deciding on next steps
Vincerx Pharma (VINC) traded down ~75% on disclosing Phase 1 data for VIP236 showing efficacy resulted in seven patients achieving SD, but no observed response rate. Shares had rallied >700% this year before closing ~flat following the data
Biohaven Pharmaceuticals (BHVN) fell on providing a limited update for highly anticipated degrader program BHV-1300 that did not disclose doses or the depth of IgG reduction. Shares had rallied ~300% since last September in anticipation of the data
Ultragenyx (RARE) fell on mixed data from the interim Ph1/2 data of GTX-102 in Angelman syndrome as the safety debate is likely to come back in focus after three pts had serious adverse events of radiculopathy
Culling the Herd:
Instil Bio (TIL) announced it was undergoing strategic restructuring and has discontinued ITIL-306 (FRα-TIL)
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