Deals Shaping the Medical Industry, July 2019

Derived from Strategic Transactions, Informa’s premium source for tracking life sciences deal activity, the Dealmaking column is a survey of recent health care transactions listed by relevant industry segment – In Vitro Diagnostics, Medical Devices, and Pharmaceuticals – and then categorized by type – Acquisition, Alliance, or Financing. This month’s column covers deals announced June 2019.

IN VITRO DIAGNOSTICS

Financings

Personalis Inc.

Personalis Inc. (oncology diagnostics and genomic analysis) netted $144m through its initial public offering. The company sold 9.1 million common shares (including the overallotment) at $17, higher than its intended range of $14-16 for 6.67 million shares. (Jun.)

Investment Banks/Advisors: Bank of America Merrill Lynch; Cowen & Co. LLC; Morgan Stanley & Co.; Oppenheimer & Co. Inc.

MEDICAL DEVICES

Mergers & Acquisitions

Asahi Kasei Corp.

Zoll Medical Corp.

Opto Circuits (India) Ltd.

Cardiac Science Corp.

Asahi Kasei’s Zoll Medical Corp. is acquiring fellow private device firm Cardiac Science Corp. for an undisclosed sum. (Jun.)

Cardiac Science provides Powerheart automated external defibrillators (AEDs) and Rescue Ready services and accessories. The firm also has a pipeline of innovative products that are expected to launch this year. Zoll offers the PlusTrac web-based system that ensures the ongoing compliance of AEDs. (All 50 US states require routine maintenance of AED devices.) Zoll’s AED Link connects first responders with the closest available AED, thus getting help more quickly to patients in cardiac arrest. In addition to gaining Cardiac Science’s portfolio, Zoll also gets facilities in the US and Europe. Over the years Zoll has been actively buying device firms, its most recent acquisitions being Kyma Medical and Advanced Circulatory Systems.

Glaukos Corp.

Dose Medical Corp.

Glaukos Corp. is acquiring fellow ophthalmic-focused firm Dose Medical Corp. for $2.5m in cash, plus earn-outs based on regulatory approvals and commercial achievements. (Jun.)

The earn-out payments are as follows: $5m-$22.5m if certain Dose products receive FDA approval within ten years following the closing of the merger; $1.25m-$2.5m should certain products received approval from the EMA within ten years after the deal closes; and $7.5m-$20m based on sales milestones. Glaukos will also shell out 5% in royalty payments for ten years. Upon FDA approval of certain Dose products, Glaukos can choose to buyout the additional earn-out and royalty payments by paying Dose shareholders $10m-$55m depending on whether the products involved are protein- or steroid-based. Dose will become a wholly owned Glaukos subsidiary. The two firms are already familiar with each other. Dose spun off from Glaukos in 2010. In April 2017 they entered into a partnership in which Glaukos acquired Dose’s intraocular pressure (IOP) sensor system and related assets for $5.5m in cash, plus up to $9.5m tied to development and regulatory milestones. The system is complementary to Glaukos' own iStent implant that allows glaucoma patients to manage their IOP. Dose is developing micro-invasive, bioerodible, sustained-release drug delivery platforms that can help treat retinal diseases including age-related macular degeneration and diabetic macular edema. Glaukos funded the deal using cash on hand; as of the end of March, it had $33.7m in cash and equivalents. Investment Banks/Advisors: Fortis Securities Inc. (Dose Medical Corp.)

Hologic Inc.

SuperSonic Imagine SA

Hologic Inc. made a binding offer to acquire French ultrasound imaging firm SuperSonic Imagine SA for up to $85m and has entered into exclusive negotiations with the company. The price includes the purchase of all SuperSonic outstanding shares at €1.50 apiece ($1.68, a 41% premium) for $39m ($42m including warrants and options), plus funds to repay up to $43m in net debt. (Jun.)

SuperSonic was formed in 2005 and markets the Aixplorer ultrasound system which utilizes both ultrasound waves and shear waves to improve the detection and characterization of cancers including tumors in the breast, liver, thyroid, abdomen, and prostate. Hologic has been marketing Aixplorer for breast indications under a deal signed in 2010. It now gains full control of the product through the acquisition, noting that Aixplorer complements the Viera wireless handheld ultrasound scanner Hologic markets through an agreement with Clarius. Hologic’s other breast imaging products include the 3Dimensions mammography system, ATEC guidance and ultrasound system for breast biopsy, and the Faxitron radiography system (which the company gained through its 2018 acquisition of Faxitron Bioptics. In 2018, Hologic brought in $29m in sales; the company has about 180 employees.

Merit Medical Systems Inc.

BrightWater Medical Inc.

Merit Medical Systems Inc. acquired private non-invasive surgical device maker BrightWater Medical Inc. (convertible nephroureteral (NU) and biliary stent systems). (Jun.)

Merit will pay $35m in cash up front and could provide up to $15m more in earn-outs based on CE mark approval and achievement of future sales targets. BrightWater's ConvertX NU stent system--which treats ureteral obstructions due to kidney stones, tumors, enlarged prostate, or scarring from previous surgeries to prevent urine in the kidneys from draining to the bladder--was approved in 2016. The system is designed to be implanted by an interventional radiologist once and converted from an NU catheter to an NU stent, eliminating the need for a second invasive surgery. Earlier this year, BrightWater's ConvertX biliary stent system received FDA clearance. Similar in concept to the NU system, the ConvertX biliary system is also one-procedure treatment for biliary obstructions--blockages of the ducts that carry bile from the liver and gallbladder to the small intestine--caused by tumors, gallstones, enlarged lymph nodes, cysts, or strictures. Merit Medical plans to retain Brightwater’s current production facility while duplicating its capabilities in its own catheter facility before transferring the ConvertX manufacturing operations to its Utah headquarters. The deal enables Merit to expand its offerings into urology; most of its devices for interventional and diagnostic procedures are currently centered around cardiovascular and general surgeries.

Varian Medical Systems Inc.

HealthTronics Inc.

Endocare Inc.

Hangzhou Alicon Pharmaceutical Sci & Tec Co. Ltd.

Varian Medical Systems Inc. is boosting its place in the interventional oncology market through a combined acquisition of two firms from the space. It will pay $185m to buy Texas-based Endocare Inc. (a division of HealthTronics Inc.) and China-based Hangzhou Alicon Pharmaceutical Sci & Tec Co. Ltd. (Jun.)

Endocare’s lead product is Cryocare CS, an integrated planning, placement, and cryotherapy treatment platform intended to simplify cryoablation procedures. Alicon develops embolic therapies for the Chinese liver cancer market, and its lead product is Caligel, calibrated resorbable gelfoam particles that stop blood-flow to tumors. Together the firms brought in about $30m in combined revenues during 2018. Through the acquisition, Varian intends to build a complete end-to-end interventional oncology suite of hardware and software solutions. Some products already in the company’s portfolio include advanced radiation treatment systems, real-time tracking and motion management solutions for radiation oncology, and cloud-based applications to improve clinical workflow.

Alliances

Orchestra BioMed Inc.

Terumo Corp.

Orchestra BioMed Inc. licensed Terumo Corp. exclusive global rights to its Virtue sirolimus-eluting balloon (SEB) for percutaneous coronary and peripheral interventions. (Jun.)

For the rights, Terumo will pay Orchestra $30m up front, clinical and regulatory milestones, and sales royalties. It will also and make a $5m equity investment in the company. Orchestra will supply Terumo with the sustained-release sirolimus formulation used in Virtue. Orchestra retains the rights to develop and license Virtue-related technology for clinical applications outside of coronary and peripheral vascular interventions. Virtue SEB is the only non-coated drug-eluting angioplasty balloon that delivers a bioabsorbable sustained-release formulation of sirolimus. It currently has breakthrough device designation (as of April) for coronary in-stent restenosis (ISR), an indication for which Orchestra will conduct a near-term US registrational trial. Both parties plan to carry out trials necessary to gain global regulatory approvals in indications including ISR, small coronary vessels, peripheral artery disease below-the-knee, and other indications.

Financings

iCAD Inc.

Digital imaging firm iCAD Inc. netted $8.5m through the public sale of 1.6 million common shares at $5.50. The company's offerings include computer-aided detection systems for diagnosis, and radiation therapy solutions for breast, prostate, and colorectal cancers. (Jun.)

Investment Banks/Advisors: Craig-Hallum Inc.

MiMedx Group Inc.

Blue Torch Finance provided MiMedx Group Inc. (allografts) with a three-year $75m term loan facility which was fully funded immediately. MiMedx will use some of the proceeds for growth objectives including its BLA pipeline. (Jun.)

Investment Banks/Advisors: PJT Partners

Sientra Inc.

Sientra Inc. (medical aesthetic devices) netted $94m through the public offering of 17.4 million shares at $5.75. The company will use the proceeds to carry out sales and marketing initiatives, expand commercially in the US and globally, and fund R&D. Potentially, some of the funds may also support future acquisitions or investments in complementary businesses, products, or technologies. Sientra offers both a portfolio of breast products (including implants, tissue expanders, and scar management products sold to plastic surgeons) as well as the miraDry system (for reduction of underarm sweat, odor, and hair), with a 2019 sales outlook of $44-46m and $35-37m for the segments, respectively. (Jun.)

Investment Banks/Advisors: SVB Leerink; Stifel Nicolaus & Co. Inc.; William Blair & Co.

PHARMACEUTICALS

Mergers & Acquisitions

AbbVie Inc.

Allergan PLC

AbbVie Inc. is buying Allergan PLC for an equity value of $63bn in cash and stock. Allergan shareholders will receive $188.24 per share ($120.30 in cash and 0.8660 AbbVie shares (worth $67.94)). (Jun.)

Post-transaction, AbbVie and Allergan shareholders will hold an 83%/17% stake of the combined company, respectively. The deal provides AbbVie with sufficient revenue as the firm prepares for the loss of patent protection for Humira (adalimumab), which is the world’s top-selling drug and accounted for 58% of AbbVie’s sales last year ($19.1bn). The therapy is approved for various autoimmune diseases including rheumatoid arthritis. Through settlement agreements, AbbVie has delayed biosimilar competition for Humira in the US until 2023, although biosimilars are available across Europe and other key international markets. The company’s next two leading drugs are Imbruvica (ibrutinib) for blood cancer (partnered with Johnson & Johnson and Mavyret (glecaprevir/pibrentsavir ) for hepatitis C. They generated a combined $7bn last year. AbbVie’s portfolio also includes risankizumab (an anti-IL-23 antibody) and the JAK1 inhibitor upadacitinib for multiple immunology indications. These drugs are slated to replace Humira as the best-in-class therapeutics. Both therapies have been submitted for initial regulatory review in the US--upacitinib in rheumatoid arthritis and risankizumab in psoriasis--with further clinical trial data generated across a wide range of indications including psoriatic arthritis, atopic dermatitis, Crohn’s and ulcerative colitis. Allergan’s lead revenue generator is Botox, which is part of its medical aesthetics (MA) business. Products within the MA segment represent 43% of international revenues. The AbbVie/Allergan combination is expected to generate $48bn in 2019 revenue. Allergan will benefit from AbbVie’s R&D capabilities, an area where investors have become concerned about productivity. The acquisition provides immediate scale and profitability to AbbVie's growth platform, enhances long-term R&D funding capacity, and increases global commercial scale to further maximize the value of Allergan's portfolio. Prior to the deal, rumors had been circulating that Allergan was getting ready to split and analysts say the sale represents a welcome exit for investors. Investment Banks/Advisors: JP Morgan & Co. (Allergan PLC); Morgan Stanley & Co.; PJT Partners (AbbVie Inc.)

Brickell Biotech Inc.

Vical Inc.

Publicly traded infectious disease-focused biotech Vical Inc. and private spec pharma Brickell Biotech Inc. have agreed to reverse merge in an all-stock transaction, creating a combined company (owned 60% by Brickell/40% by Vical), which will take over Vical's NASDAQ listing under a new ticker symbol, operate under the Brickell Biotech name, and retain Brickell's current management team and corporate headquarters in Boulder, Colorado. (Jun.)

The merged company will focus on Brickell’s development pipeline of mainly three NCE candidates targeting dermatologic disorders. Brickell’s lead candidate sofpironium bromide (BBI4000)--partnered under a 2015 deal with Kaken Pharmaceutical in Japan, where it's achieved positive Phase III results--is a topical soft anticholinergic for axillary hyperhidrosis (excessive underarm sweating) in a metered dose pump gel formulation. The initiation of a pivotal Phase III trial in the US is expected in Q4 2019, with topline results anticipated in Q4 2020 and an NDA in Q2 2021. Brickell is also developing BBI3000, a Phase I oral rexinoid for cutaneous T-cell lymphoma (POC study expected to start in late 2020); preclinical BBI6000, a topical RORy inhibitor (with a POC study in psoriasis expected to start in early 2021) in-licensed from Orca in 2015; as well as several programs in other skin disease indications. R&D funding for Phase III trials will be provided by NovaQuest Capital Management through a concurrent $25m financing commitment as well as Vical's $35m in cash, expected to last through Q4 2020. In the third quarter of 2018, Vical announced plans to reviewing multiple strategic alternatives and discontinued its Phase II antifungal VL2397 in February 2019 to conserve cash; the company believes the reverse merger transaction will provide the best return for its shareholders. Vical's core technology involves the insertion of DNA into plasmids designed to deliver the genes of interest into specific cells. It's unclear if this technology will be used or Vical's pipeline of mostly preclinical vaccines for infectious disses and oncology will be assumed by the combined entity. Investment Banks/Advisors: MTS Health Partners (Vical Inc.); BMO Financial Group (Brickell Biotech Inc.)

Merck & Co. Inc.

Tilos Therapeutics Inc.

Merck & Co. Inc. agreed to acquire privately held Tilos Therapeutics Inc. (developing therapies targeting TGF beta complex) for up to $773m. The price includes an up-front payment and earn-outs. (Jun.)

Tilos--formed in 2016 based on research from Dr. Howard Weiner of Brigham and Women’s Hospital and Harvard Medical School--is working on anti-LAP (latency-associated peptide) antibodies that inhibit the effects of cytokine TGF beta LAP. TGF beta is involved in the development and progression of cancer and fibrotic diseases. LAP forms a cage around TGF beta, holding it in an inactive state until it is deployed, but anti-LAP antibodies, such as those Tilos is working on, target cells in the tumor microenvironment for depletion and inhibit the release of TGF beta from the LAP complex, thereby fighting cancerous cells more effectively than existing TGF beta therapies. Tilos’s antibodies have applications in a variety of solid tumors including head and neck, ovarian, colorectal, gastric, and non-small cell lung cancers, as well as in fibrosis and autoimmune diseases. According to SEC filings, the company has raised about $4m since inception. Investors include Boehringer Ingelheim Venture Fund, Partners Innovation Fund, and ShangPharma Innovation Fund.

Pfizer Inc.

Array BioPharma Inc.

In an effort to expand its cancer offerings with targeted therapies, Pfizer Inc. is paying $11.4bn in cash ($48 per share; a 66% premium) to acquire Array BioPharma Inc. (Jun.)

Pfizer gains Array’s FDA-approved combination therapy of Braftovi (encorafenib) and Mektovi (binimetinib) for the treatment of BRAFV600E or BRAFV600K mutant unresectable or metastatic melanoma. The drugs are also in Phase III for BRAF-mutant metastatic colorectal cancer and, according to Biomedtracker, Braftovi and Mektovi have a 43% (8% above average) and 41% (6% above average) likelihood of approval, respectively. They are also in various other clinical trials for multiple solid tumors including non-small cell lung cancer. The drugs generated a combined $35m in sales for Q1 2019. Braftovi and Mektovi face competition from Merck’s Keytruda (pembrolizumab) and Bristol-Myers Squibb’s Opdivo (nivolumab) in the melanoma indication, but the Braftovi/Mektovi combo therapy could potentially be a leading player in BRAF-mutated colorectal cancer based on exceptional clinical data. The majority of Array’s portfolio consists of out-licensed cancer therapies. Partners include One, Pierre Fabre, Bayer, Roche, and several others. Pfizer will benefit from royalties of those partnered programs over time. Array also has several undisclosed preclinical programs in cancer and rare diseases and says it plans to bring one new cancer drug into the clinic each year. At the end of March 2019, Array had $96.6m in cash. Pfizer says the acquisition supports its long-term growth strategy and has the potential to create an industry-leading franchise for colorectal cancer alongside the Big Pharma’s own expertise in breast and prostate cancer. Investment Banks/Advisors: Guggenheim Partners LLC; Morgan Stanley & Co. (Pfizer Inc.); Centerview Partners LLC (Array BioPharma Inc.)

Swedish Orphan Biovitrum AB

Novimmune SA

One year after granting Swedish Orphan Biovitrum AB (Sobi) exclusive global rights to the interferon gamma antagonist emapalumab (which has since been approved as Gamifant), Novimmune SA has now created a new entity which holds the compound and all related assets, and is selling that newco to Sobi for CHF515m ($519.4m). (Jun.)

Gamifant was approved by the FDA in November 2018 to treat pediatric and adult patients with primary haemophagocytic lymphohistiocytosis (HLH) with refractory, recurrent, or progressive disease or intolerance to conventional HLH therapy. HLH is a rare disease of extreme immune activation that causes histiocytes and lymphocytes (types of white blood cells) to attack other blood cells. The abnormal cells collect in the liver and spleen, causing enlargement and other symptoms including swollen lymph nodes, jaundice, lung and digestive issues, and neurological problems. Under terms of their original deal, Sobi paid CHF50m up front for rights, and committed to up to CHF400m in additional payments. The new entity now created by Novimmune contains all assets related to emapalumab (intellectual property, patent rights, data, and know-how); Sobi takes on all staff involved in the development of the drug as well. Also, as part of the acquisition, Sobi gains a Priority Review Voucher that it can use or sell, and options to share financial rights to two immuno-oncology assets--NI1701 (Phase I anti-CD19/anti-CD47 bispecific antibody for blood cancers) and NI1801 (preclinical anti-CD47/mesothelin bispecific antibody for solid tumors). On the same day as Sobi announced the deal with Novimmune, it also revealed a planned reorganization intended to further steer the company’s focus towards two core therapy areas, hematology and immunology. As a result, the workforce will be cut by 90 employees and candidates falling outside of the new core areas will be divested (including the Phase I Sanfilippo syndrome project SOBI003 and preclinical autoimmune/inflammatory disease candidate SOBI006).

Vertex Pharmaceuticals Inc.

Exonics Therapeutics Inc.

Vertex Pharmaceuticals Inc. acquired privately held Exonics Therapeutics Inc. (gene editing therapies for Duchenne muscular dystrophy (DMD)) for up to $1bn. (Jun.)

Vertex will provide $245m at closing, another $74m in additional payments at a later date, plus up to $728m in potential earn-outs related to the achievement of clinical and regulatory milestones associated with the R&D and commercialization of DMD and myotonic dystrophy type 1 (DM1) programs. Launched in 2017 with a $5m seed round from CureDuchenne Ventures, Exonics has raised $45m to date. Its SingleCut CRISPR gene editing technology, intended to permanently repair errors in the DNA sequence that cause disease, is licensed from the University of Texas Southwestern Medical Center, where it was discovered by a team led by Eric Olson, PhD, Exonics' co-founder and chief scientific adviser. Directed by highly specific single guide-strand RNA, the SingleCut platform uses an adeno-associated virus (AAV) to deliver the gene-editing enzymes CRISPR/Cas9 by cutting the DNA of chromosomes at selected sites in the DNA sequence to remove or insert segments. Exonics' initial focus is repairing mutations in dystrophin (exon 51), a key protein that stabilizes and protects muscle fibers, but is lacking in DMD patients. Its lead program has demonstrated in preclinical mouse models that a one-time administration of the SingleCut technology delivered through AAV is sufficient to restore the production of dystrophin and improve the structure and function of both skeletal muscles and the heart of mice with these mutations. The company believes the technology will also have applications in a range of other genetic neuromuscular diseases. In addition to gaining Exonics' platform, Vertex concurrently expanded its 2015 agreement for sickle cell disease and beta thalassemia with CRISPR Therapeutics into DMD and DM1, agreeing to pay CRISPR $1bn for its programs in these disease areas and exclusive worldwide rights to CRISPR's CRISPR/Cas9 technology.

Alliances

Achaogen Inc.

Cipla Ltd.

Cipla USA Inc.

QiLu Antibiotics Pharmaceutical Co. Ltd.

Achaogen Inc. is selling off global rights to Zemdri (plazomicin). (Jun.)

Achaogen filed the voluntary Chapter 11 petition in April. The company is granting Cipla USA Inc. worldwide rights (excluding China, Hong Kong, Macao, and Taiwan) to Zemdri and related assets. QiLu Antibiotics Pharmaceutical Co. Ltd. is getting exclusive royalty-free rights to the drug in Greater China. Zemdri received FDA approval in mid-2018 for treating adults with complicated urinary tract infections (cUTIs). Separately, Heritage Global Partners is buying Achaogen’s lab equipment. The firm is also auctioning off its C-Scape cUTI assets. Earlier this year Achaogen netted $14.1m through a follow-on offering.

Artizan Biosciences Inc.

Brii Biosciences

Concurrent with raising $12m in its series A round, Artizan Biosciences Inc. is teaming up with Brii Biosciences on up to three Artizan programs. (Jun.)

The firms will collaborate on up to three Artizan programs. Once Artizan demonstrates proof-of-concept (expected in the next two years), Brii gets rights to develop and commercialize the compounds in China. Specific terms of the deal were undisclosed however it does include money up front, milestones, and royalties, and Brii participated in Artizan’s series A financing. Artizan’s programs are based on its IgA-SEQ platform created with IP originating at Yale University. The technology can identify disease-causing bacteria--by scanning for the immunoglobin A antibody coating--and can distinguish it from intestinal microbiota. Artizan’s compounds are designed to neutralize pathogens.

Arvinas Inc.

Bayer AG

Arvinas Inc. and Bayer AG agreed to use the former’s PROTAC technology to develop drug candidates for cardiovascular and gynecological diseases, and cancer. Separately, the companies established a 50/50 joint venture that will use PROTAC in the agricultural industry. (Jun.)

Bayer pays $17.5m up front in cash plus $32.5m through the purchase of 1.4 million Arvinas shares--representing about a 4% equity stake--at $24.14 (an 11% premium). Bayer is also responsible for $12m in research funding payments (consisting of $3m per year during the first four years), $197.5m in development milestones, $490m in sales milestones, and sales royalties in the mid-single to low-double digits. The Big Pharma will select targets and have rights to novel lead structures. PROTAC, which stands for proteolysis-targeting chimera, are molecules that use the cell’s ubiquitin/proteasome system to degrade disease-causing proteins. Arvinas believes PROTACs have advantages over traditional small-molecule protein inhibitors, including avoiding side effects and drug resistance. Thus far, Arvinas has focused its work on PROTAC candidates in prostate and breast cancers, as well as CNS diseases, and so the current deal will test the utility of the technology in new areas such as cardiovascular and gynecological diseases. In the past, Arvinas has worked with Pfizer, Genentech, and Merck & Co., all in undisclosed therapy areas. The agricultural portion of the current agreement is worth $55m, representing funding from Bayer. The investment in the JV falls in line with Bayer’s crop sciences business, a diversified operation (built up even more though the acquisition of Monsanto in 2018) that the Big Pharma is still investing in as opposed to animal health, a unit that Bayer is planning to divest as it puts more efforts into life sciences.

Astellas Pharma Inc.

Vect-Horus

Vect-Horus and Astellas Pharma Inc. are collaborating in the development of therapies for CNS diseases. (Jun.)

Vect-Horus’ VECTrans technology uses a screening platform of peptide and VHH (single-domain) antibody libraries to identify and optimize vectors that specifically target endogenous receptors to facilitate the transport of agents across natural biological barriers such as the blood-brain barrier. Vect-Horus will conjugate Astellas’ antibody with its vectors and handle conjugate design, initial production, and validation. Vect-Horus will use VECTrans to transport the antibody to the brain for treating CNS diseases. Vect-Horus is eligible for money up front, development and commercial milestones, and sales royalties. Earlier this year, Vect-Horus signed a similar agreement with Ono Pharmaceutical involving the development of neurodegenerative disease therapeutics using the VECTrans technology.

AstraZeneca PLC

Starpharma Holdings Ltd.

AstraZeneca PLC and Starpharma Holdings Ltd. signed a second agreement involving Starpharma’s DEP dendrimer drug delivery technology, this time for the development of an undisclosed marketed AZ cancer product. (Jun.)

The DEP (Dendrimer Enhanced Product) platform joins an active drug to a dendrimer construct and provides for increased solubility, extended duration of action, improved efficacy, and a reduction in toxic side effects. Starpharma will conduct preclinical studies on a DEP version of AZ’s drug, after which point AZ has an option to license the candidate. If the option is exercised, Starpharma gets a $5m fee in addition to “industry standard” development and commercialization milestones, plus escalating sales royalties. (If AZ doesn’t take rights, Starpharma could license the drug for development and commercialization either on its own or through a sublicense, in which case AZ would be eligible for milestones and royalties.) The companies partnered in 2015 in a deal through which AZ licensed rights to use DEP in the development of multiple products (in contrast to the current agreement that calls for Starpharma to conduct studies on one specific AZ drug). Terms of the initial deal included a $2m up-front payment to Starpharma and up to $124m in milestones.

Atomwise Inc.

Eli Lilly & Co.

Eli Lilly & Co. penned a deal with AI drug discovery firm Atomwise Inc. to support Lilly’s preclinical discovery efforts. (Jun.)

Atomwise, founded in 2012, created the first deep learning AI technology for structure-based small molecule drug discovery. The company’s AtomNet platform uses a statistical approach incorporating deep learning algorithms and supercomputers to extract insights from millions of experimental affinity measurements and thousands of protein structures to predict how small molecules will bind to proteins. This allows for analysis of millions of potential molecules to provide toxicity, side effects, mechanism of action, and efficacy of a drug, much earlier than typical in a drug pipeline. Lilly will pay Atomwise $1m per target (for up to ten targets) in discovery milestones to apply the technology to the Big Pharma’s drug discovery projects. Atomwise could also get up to $550m in development and commercialization milestones (for all targets), and retains an option to develop any compounds from the partnership that Lilly decides not to further pursue. The application of artificial intelligence and machine learning to drug discovery efforts has been a hot topic of late. Strategic Transactions has covered about ten deals between biopharma and AI firms in just the last year, most notably a tie-up between bluebird bio and Gritstone (PDV $1.2bn) through which Gritstone is using its EDGE AI platform and biopsy sequencing data to provide ten tumor-specific targets for bluebird’s use in its cell therapy program.

Aucta Pharmaceuticals Inc.

Eton Pharmaceuticals Inc.

Eton Pharmaceuticals Inc. licensed US marketing rights to Aucta Pharmaceuticals Inc.'s oral liquid formulation of lamotrigine, which Eton will call ET105. (Jun.)

Aucta submitted an NDA for lamotrigine for pediatric epilepsy in May 2019. Contingent the upon the FDA's acceptance of Aucta’s NDA, Eton will pay up to $2m up-front, $2m upon FDA approval and product launch, and $1m upon the issuance of an Orange Book-listed patent. In addition, Aucta gets a low-double-digit royalty on net sales, plus sales milestones up to $18m ($1m when net sales exceed $10m; $2m when that threshold exceeds $20m; $5m when sales exceed $50m; and $10m when sales exceed $100m). Eton plans to establish a neurology-focused sales force to support commercialization efforts for ET105--which it expects to launch in the US during 1H 2020--and its other CNS candidates. So far lamotrigine is only approved in tablet form, but Eton believes Aucta's oral liquid version will offer a preferred route of administration as well as a lower dosing option as an adjunct therapy for partial seizures, primary generalized tonic-clonic seizures, and generalized seizures of Lennox-Gastaut syndrome in patients two years of age and older. Aucta's expertise lies in creating new dosage forms, dosing regimens, and indications for proven molecules using the 505(b)(2) expedited regulatory pathway. The addition of ET105 complements Eton's existing pipeline of oral liquid reformulations of approved solid dosage drugs for undisclosed CNS diseases, which are also expected to advance through the 505(b)(2) process.

Calliditas Therapeutics AB

Everest Medicines Ltd.

Calliditas Therapeutics AB (formerly Pharmalink) granted Everest Medicines Ltd. exclusive rights to develop and sell the IgA nephropathy candidate Nefecon (enteric budesonide) in China, Hong Kong, Macau, Taiwan, and Singapore. (Jun.)

Everest pays $15m up front; development, regulatory, and commercialization milestones of up to $106m (including $20m if Nefecon is developed in other indications); and royalties. IgA nephropathy, also known as Berger’s disease, is a condition where IgA deposits build up in the kidneys and cause damaging inflammation. Nefecon, a corticosteroid, was developing using Archimedes TARGIT drug delivery technology, enabling the drug to be delivered locally to the lower small intestine and other colonic areas. Calliditas currently has the candidate in Phase III trials. The partners note that while IgA nephropathy is an orphan disease in the US and Europe, the condition is much more prevalent in Everest’s territory of China. The deal is the third for Everest since the beginning of 2019. In January, it licensed rights to antibiotics from Spero ($1m up front), and in April, it paid $65m up front for rights to Immunomedics’ solid tumor candidate sacituzumab.

Carna Biosciences Inc.

Gilead Sciences Inc.

Gilead Sciences Inc. and Carna Biosciences Inc. penned a collaboration for the development and commercialization of next-generation small-molecule cancer immunotherapies. (Jun.)

The deal will utilize Carna’s proprietary lipid kinase drug discovery program, to which Gilead gains exclusive access. Gilead also gets global rights to develop and sell inhibitors against an undisclosed I/O target. The company paid $20m up front and could hand over another $450m in milestones, plus royalties. Carna’s discovery platforms provide for the identification of a variety of kinase inhibitors, and has been used in the development of treatments for cancer, autoimmune conditions, and neurological diseases. In addition to Gilead, the firm’s list of partners includes Sierra Oncology, Sumitomo Dainippon, National Cancer Center Japan, Hiroshima University, and Kitasato University.

Deciphera Pharmaceuticals Inc.

Zai Lab Ltd.

Deciphera Pharmaceuticals Inc. granted Zai Lab Ltd. exclusive development and commercialization rights for its gastrointestinal stromal tumor (GIST) therapy ripretinib in China, Hong Kong, Macau, and Taiwan. (Jun.)

Ripretinib is a KIT and PDGFRa kinase switch control inhibitor in Phase III trials for GIST, a type of benign or malignant tumor that is believed to grow from interstitial cells of Cajal in the wall of the GI tract. It is also being studied for other solid tumors driven by KIT or PDGFRa including systemic mastocytosis and glioblastoma multiforme. Zai pays $20m up front for the rights, plus development milestones of up to $50m, sales milestones that could hit $135m, and royalties ranging from the low- to high-teens. The company has a strong oncology pipeline that includes two products already on the market (Zejula (niraparib) for ovarian cancer and the Optune Tumor Treating Fields device for brain cancer), plus additional candidates in mid- and late-stage development for a variety of other solid tumors.

Denovo Biopharma LLC

Orion Corp.

Denovo Biopharma LLC licensed exclusive worldwide development, manufacturing, and commercialization rights to Orion Corp.'s ORM12741, an alpha 2-adrenoreceptor antagonist for Alzheimer's disease (AD). (Jun.)

Under a 2013 deal, J&J's Janssen had worldwide rights (except in Europe) to ORM12741, but discontinued development in April 2018 following a Phase IIa trial study on agitation/aggression symptoms in AD that did not meet projected efficacy objectives. ORM12741, which Denovo will rename DB105, was also previously in clinical trials by Orion for Raynaud’s phenomenon (reached Phase II until discontinuation in 2012) and schizophrenia (through Phase I in 2011, after which it was no longer noted in the company's pipeline). Denovo plans to apply its biomarker approach--enabling the design of new clinical trials in smaller and targeted patient populations than the previously failed studies--to develop DB105 as a personalized medicine. Based on prior clinical trials, Denovo is hoping DB105 may be useful for AD, schizophrenia, and other neuropsychiatric indications, including depression. DB105 complements Denovo's existing in-licensed CNS pipeline, which includes Phase II-ready candidates DB103 (pomaglumetad) for schizophrenia and DB104 (liafensine) for treatment-resistant depression. Denovo also has an oncology candidate (licensed from Lilly) in development.

Dr. Reddy's Laboratories Ltd.

Promius Pharma LLC

Sawai Pharmaceutical Co. Ltd.

Upsher-Smith Laboratories LLC

Upsher-Smith Laboratories LLC gained US marketing rights to Tosymra (sumatriptan) nasal spray 10 mg and Zembrace/SymTouch (sumatriptan succinate) injection 3 mg from Dr. Reddy's Laboratories Ltd.'s Promius Pharma LLC subsidiary. (Jun.)

Upsher-Smith pays $70m up front; up to $40.5m in near-term milestones and additional financial considerations, including existing contractual obligation and inventory; and sales-based royalties on a quarterly basis. Formulated with an excipient that helps achieve blood levels similar to a subcutaneous injection, Tosymra was FDA approved earlier this year and is expected to launch soon. Dr. Reddy's gained exclusive worldwide marketing rights to Tosymra under a 2010 deal with the drug's originator, Aegis Therapeutics. Zembrace/SymTouch is a drug-device combo that uses a pre-filled, single-dose, disposable autoinjector to subcutaneously dispense sumatriptan, a selective 5 hydroxytryptamine (5-HT) 1B/ID receptor agonist, for acute migraine. Zembrace/SymTouch was FDA approved in 2016 and launched in the US that same year. The addition of Promius' approved migraine treatments complement Upsher-Smith's existing CNS portfolio, which includes Qudexy XR (topiramate) extended-release capsules, cleared in the US for migraine in 2017 and also indicated for certain types of seizures.

Eddingpharm International Holdings Ltd.

Shionogi & Co. Ltd.

Shionogi & Co. Ltd. granted Eddingpharm International Holdings Ltd. exclusive rights to commercialize the thrombopietin receptor agonist Mulpleta (lusutrombopag) in Mainland China, Hong Kong, and Macau. (Jun.)

Shionogi, which will supply the product to Eddingpharm, gets an undisclosed up-front payment and sales milestones. Mulpleta is indicated for severe thrombocytopenia in patients with chronic liver disease. It was approved for sale in Japan in 2015, the US in July of 2018, and in Europe earlier this year. The deal is the third out-licensing for Shionogi in the last few months. In April, it licensed Sandoz rights to sell the opiate-induced constipation drug Rizmoic (nalmedine) in Germany, the UK, and the Netherlands, and about a week before announcing the Eddingpharm deal, it granted Grupo Ferrer Rizmoic rights in Spain.

EffRx Pharmaceuticals SA

Pharmaxis Ltd.

Pharmaxis Ltd. licensed EffRx Pharmaceuticals SA exclusive rights to commercialize its cystic fibrosis drug Bronchitol (mannitol) in Switzerland. (Jun.)

EffRx is responsible for registering, obtaining pricing and reimbursement, and commercializing Bronchitol. The drug is administered via a dry-powder inhaler twice a day and designed to rehydrate the airway/lung surface thus stimulating a productive cough and helping clear mucus and improve lung function. Bronchitol should be launched in Switzerland by 2021. Under a late 2014 deal, Chiesi Farmaceutici has exclusive rights to sell Bronchitol in the US. In mid-2017 the agreement was expanded to include rights in Italy.

Genfit SA

Terns Pharmaceuticals Inc.

Genfit SA granted Terns Pharmaceuticals Inc. exclusive rights to develop, register, and sell elafibranor for nonalcoholic steatohepatitis (NASH) and primary biliary cholangitis (PBC) in China, Hong Kong, Macau, and Taiwan. (Jun.)

Under terms of the deal, Terns pays $35m up front; up to $193m in development, regulatory, and commercialization milestones; and mid-teens royalties (Strategic Transactions estimates 14-16%). Elafibranor, a peroxisome proliferator-activated receptor alpha/delta agonist, is in Phase III trials (with Fast Track designation) for NASH, and Phase II (with Breakthrough Therapy designation) for PBC. In addition to Terns’ license, the partners will also work together on additional development projects including potential elafibranor combination therapies with Terns’ farnesoid X receptor (FXR) agonist TERN101 and semicarbazide-sensitive amine oxidase (SSAO) inhibitor TERN201 (both in-licensed from Lilly last year), and thyroid hormone receptor (THR) ß-selective agonist and apoptosis signal-regulating kinase 1 (ASK1) inhibitor programs.

Genmab AS

Johnson & Johnson

Janssen Biotech Inc.

Genmab AS and Janssen Biotech penned an exclusive worldwide license and option agreement involving the development and commercialization of next-generation HexaBody-CD38. (Jun.)

Genmab will fund R&D activities of HexaBody-CD38 through completion of clinical proof-of-concept in multiple myeloma and diffuse large B-cell lymphoma. Janssen can then opt to license global rights to develop, manufacture, and commercialize the monoclonal antibody and would shell out a $150m option exercise fee. Genmab would also be eligible for up to $125m in development milestones in addition to 20% sales royalties on HexaBody-CD38 until a specified time in 2031, followed by 13-20% tiered royalties on sales thereafter. If Janssen chooses not to exercise its option, Genmab will continue to develop and commercialize HexaBody-CD38 for Darzalex-resistant patients, and in all other indications excluding multiple myeloma or amyloidosis indications where Darzalex is either approved or is being actively developed. HexaBody-CD38 has already demonstrated promising results in preclinical studies in multiple myeloma, lymphoma, and leukemia. Genmab and Janssen first began collaborating in 2012 when they signed two agreements in as many months. Genmab agreed to use its DuoBody technology to create and develop bispecific antibodies for several disease targets (up to 10 programs) that Janssen selects. In the second deal, Janssen got exclusive global development and marketing rights to Darzalex and a back-up anti-CD38 compound. Both partnerships are continuing to progress well and have resulted in multiple milestone payments.

Gilead Sciences Inc.

Nurix Inc.

Nurix Therapeutics Inc. gained another major partner through a new multi-year deal with Gilead Sciences Inc. in which the companies will focus on targeted protein degradation treatments for cancer and other serious diseases. (Jun.)

Working with the concept that dysregulated and mutated proteins are important to progression of many diseases, Nurix’s drug development efforts center around E3 ligases and manipulation of the ubiquitin system to control protein levels in cells. Under terms of the deal, the company will utilize its discovery platform to identify agents that use E3 ligases to induce targeted protein degradation of certain targets. Gilead has the option to license candidates aimed at up to five targets, while Nurix retains an option to co-develop and co-detail up to two in the US. Gilead pays $45m up front and could hand over up to $2.3bn in development, regulatory, and sales milestones, plus up to low-double digit royalties. If Nurix chooses to exercise its opt-in rights, the partners will split costs and profits/losses 50/50 in the US, with Nurix eligible for ex-US royalties and reduced milestone payments. The deal is the second big collaboration for Nurix since the company was formed in 2012. Celgene paid $150m up front in 2015 for options to small-molecule therapies targeting the ubiquitin proteasome system for cancer, inflammation, immunology, and immuno-oncology. Nurix could get up to $405m more in option exercise fees and milestones, plus royalties. Other companies working in the protein degradation space include Arvinas, Kymera Therapeutics, C4 Therapeutics.

Grupo Ferrer Internacional SA

Shionogi & Co. Ltd.

Shionogi & Co. Ltd. licensed Grupo Ferrer Internacional SA exclusive rights to promote its Rizmoic (naldemedine) in Spain. (Jun.)

Rizmoic is indicated for treating opioid-induced constipation (OIC) in adults previously treated with a laxative. The drug has been approved in the US since June 2017 and is sold there as Symproic. It received European approval in February 2019 and is expected to launch in Spain next year. Just two months ago Shionogi licensed BioDelivery Sciences exclusive rights to commercialize Symproic in the US and Puerto Rico, and granted Sandoz exclusive rights in Germany, the UK, and the Netherlands.

Pfizer Inc.

King Pharmaceuticals Inc.

Meridian Medical Technologies Inc.

Siga Technologies Inc.

Siga Technologies Inc. granted Meridian Medical Technologies Inc. exclusive global rights (excluding the US and South Korea) to promote oral TPOXX (tecovirimat) for treating smallpox. (Jun.)

Specific terms of the agreement were not disclosed however up-front cash payments are not a part of the deal and both firms will fund their own activities. Meridian will receive a fee based on a percentage of net sales. TPOXX is the first FDA-approved drug for treating smallpox in adults and children weighing at least 29 pounds. It is designed to inhibit viral maturation of variola virus and other poxviruses by preventing the formation of a secondary viral envelope. Siga chose Meridian as a partner because of its global network within the medical countermeasure industry.

Theramex

TherapeuticsMD Inc.

Theramex licensed exclusive commercialization rights outside the US to TherapeuticsMD Inc.'s Imvexxy (estradiol; TX004HR) and Bijuva (estradiol/progesterone; TX001HR) prescription hormone replacement therapies (HRTs) for menopausal women. (Jun.)

The agreement excludes Canada and Israel, where Knight Therapeutics has exclusive commercialization rights from TherapeuticsMD through a 2018 alliance. Under the current deal, Theramex pays €14m ($15.8m) up front; €29.5m in milestones (an aggregate €2m upon regulatory approvals in certain specified markets and €27.5m (payable in escalating tranches) when certain net sales goals in the licensed territories ranging from €25-100m are met); plus, royalties on net sales. Both HRTs were already FDA approved last year, but Theramex is responsible for all additional regulatory and commercialization activities in the licensed territories. Administered as a vaginal suppository using theVagiCap softgel capsule, Imvexxy was launched in the US in September 2018 for dyspareunia (vaginal pain associated with sexual activity) due to menopause. Launched in the US in April 2019, Bijuva is an oral capsule for vasomotor symptoms (also known as hot flashes) of menopause. The deal broadens Theramex's current portfolio of women's health offerings in the areas of contraception, fertility, menopause, and osteoporosis.

Financings

AcelRx Pharmaceuticals Inc.

Oxford Finance provided AcelRx Pharmaceuticals Inc. (sublingual delivery of pain medications) with a $25m senior secured debt facility, which was fully funded at closing. The term loan will mature on June 1, 2023 and bears interest at variable rate equal to the greater of 9.25% or the 30-day US LIBOR rate, with interest-only payments for the first 12 months. AcelRx will use the proceeds to further support the commercial launch of Dsuvia (sufenatil) sublingual tablets for pain (FDA approved in November 2018 and launched in February 2019) and repay its $9m balance on a previous credit facility. (Jun.)

Akero Therapeutics Inc.

Akero Therapeutics Inc. (developing treatments for nonalcoholic steatohepatitis (NASH) and serious metabolic diseases) netted $98.4m through its initial public offering of 6.6 million common shares (including the overallotment) at $16. The company originally planned to sell 5 million shares at $14-16. (Jun.)

Investment Banks/Advisors: Evercore Partners; JP Morgan Chase & Co.; Jefferies & Co. Inc.; Roth Capital Partners

ArQule Inc.

ArQule Inc. (developing therapies for cancers and rare diseases) netted $97.5m through a follow-on public offering of 10.6 million common shares (including full exercise of the overallotment) at $9.75 each to fund ongoing development of its clinical candidates. (Jun.)

Investment Banks/Advisors: B. Riley FBR Inc.; Needham & Co. Inc.; Oppenheimer & Co. Inc.; RBC Capital Markets; Roth Capital Partners; SVB Leerink

Biohaven Pharmaceutical Holding Co. Ltd.

Neuro-focused Biohaven Pharmaceutical Holding Co. Ltd. netted $282m in a public offering of 7 million shares at $43. The company will use the proceeds to support continued and expanded development of its three platforms: calcitonin gene-related peptide (CGRP) receptor antagonists; glutamate modulators; and myeloperoxidase (MPO) inhibitors. An NDA submission is expected in mid-2019 for its most advanced CGRP candidate rimegepant (in Phase III for migraine) using a priority review voucher (PRV) Biohaven bought earlier this year from GW Pharmaceuticals, allowing the former to designate a single NDA for priority status and providing an accelerated six-month review period. (Jun.)

Investment Banks/Advisors: Canaccord Genuity Inc.; Cantor Fitzgerald & Co.; Goldman Sachs & Co.; Oppenheimer & Co. Inc.; Piper Jaffray & Co.; William Blair & Co.

Brickell Biotech Inc.

NovaQuest Capital Management committed up to $25m in near-term research and development funding to Brickell Biotech Inc. following the closing of Brickell's concurrent reverse merger with Vical Inc., which will hold a 40% stake in the combined company. (Jun.)

BridgeBio Pharma Inc.

BridgeBio Pharma Inc. netted $324.1m in its oversubscribed initial public offering of 20.5 million common shares at $17 each on the Nasdaq. The company had planned to sell 15 million shares between $14 and $16. (Jun.)

Investment Banks/Advisors: BMO Financial Group; Goldman Sachs & Co.; JP Morgan & Co.; Jefferies & Co. Inc.; KKR; Mizuho Bank Ltd.; Piper Jaffray & Co.; Raymond James & Associates Inc.; SVB Leerink

Calithera Biosciences Inc.

Calithera Biosciences Inc. netted $54m through the public sale of 14.4 million common shares (including the overallotment) at $4. The company is developing small-molecule drugs directed against tumor metabolism and tumor immunology targets, and will put the proceeds towards continued pipeline development, with projects including telaglenastat for renal cell carcinoma, CB1158 for solid tumors, CB280 for cystic fibrosis, and immuno-oncology candidate CB708. (Jun.)

Investment Banks/Advisors: SVB Leerink; Wells Fargo Securities LLC; William Blair & Co.

Catalent Inc.

Catalent Inc. privately sold $500m in aggregate principal amount of 5% senior unsecured notes due 2027 priced at par. The company will use the proceeds to pay off outstanding borrowings and related fees under term loans from existing senior secured credit facilities. (Jun.)

ContraVir Pharmaceuticals Inc.

ContraVir Pharmaceuticals Inc. (treatments for nonalcoholic steatohepatitis and chronic hepatitis infections) netted $14.5m through a public offering of common and preferred shares. The company sold 838,333 Class A units at $6 (with each unit consisting of one common share and one five-year common share purchase warrant exercisable at $6), and also issued 10,570 Class B units at $1k apiece, with each holding one series E preferred share (convertible into 167 common) and 167 warrants. (Jun.)

Investment Banks/Advisors: Roth Capital Partners

Genocea Biosciences Inc.

Genocea Biosciences Inc. (neoantigen immunotherapies) netted $34.5m through the public sale of 10.5 million common shares at $3.50. Proceeds will go towards continued development of personalized cancer vaccine GEN009 (Phase I/IIa trials for solid tumors including cutaneous melanoma, non-small cell lung cancer, squamous cell carcinoma of the head and neck, urothelial carcinoma, and renal cell carcinoma); filing of an IND and initiating development of GEN011 (adoptive T-cell therapy); and preclinical studies with GEN010 (next-gen neoantigen vaccine). (Jun.)

Investment Banks/Advisors: Needham & Co. Inc.; Robert W. Baird & Co. Inc.; SVB Leerink; Stifel Nicolaus & Co. Inc.

Global Blood Therapeutics Inc.

Global Blood Therapeutics Inc. netted $193m through a public offering of 3.4 million common shares at $59.25. Proceeds will support continued development and future commercialization activities surrounding voxelotor for sickle cell disease, and will also go towards R&D of additional projects including inclacumab for vaso-occlusive crisis. (Jun.)

Investment Banks/Advisors: Cantor Fitzgerald & Co.

Inhibrx Inc.

Inhibrx Inc. (biologics for cancer, infectious diseases, and orphan conditions) filed for its initial public offering. (Jun.)

Investment Banks/Advisors: Barclays Bank PLC; Evercore Partners; Nomura Securities International Inc.; Raymond James & Associates Inc.

Karuna Therapeutics Inc.

Karuna Therapeutics Inc. (muscarinic receptor modulators for psychiatric and cognitive disorders) netted $83m in an initial public offering of 5.6 million shares at $16, the midpoint of its anticipated range. The company originally planned to sell 4.375 shares. (Jun.)

Investment Banks/Advisors: Citigroup Inc.; Goldman Sachs & Co.; Wedbush PacGrow Life Sciences; Wells Fargo Securities LLC

Kura Oncology Inc.

Precision cancer medicine company Kura Oncology Inc. netted $108.4m through a public offering of 6.8 million common shares (including the overallotment) at $17. Proceeds are earmarked for continued R&D including development of tipifarnib for solid and blood cancers; KO947 and KO539 for solid tumors and AML, respectively; and additional pipeline projects. (Jun.)

Investment Banks/Advisors: Cowen & Co. LLC; HC Wainwright & Co.; Oppenheimer & Co. Inc.; SVB Leerink; Wedbush PacGrow Life Sciences

Mirati Therapeutics Inc.

Mirati Therapeutics Inc. (oncology) netted $191.5m through a public offering of 2.1 million common shares at $97. The company plans to use the funds for development of sitravatinib (NSCLC, melanoma, bladder cancer, and other solid tumors), MRTX849 (NSCLC and colorectal cancer (CRC)), and preclinical projects including a KRAS G12D inhibitor for NSCLC, colorectal, and pancreatic cancers. (Jun.)

Investment Banks/Advisors: Barclays Bank PLC; Cowen & Co. LLC; Credit Suisse Group; Guggenheim Partners LLC; HC Wainwright & Co.; Oppenheimer & Co. Inc.

Morphic Therapeutic Inc.

Morphic Therapeutic Inc. netted $83.7m through its initial public offering on the Nasdaq of 6 million common shares at $15 each. It had planned to sell 5 million shares between $14 and $16. (Jun.)

Investment Banks/Advisors: BMO Financial Group; Cowen & Co. LLC; Jefferies & Co. Inc.; Wells Fargo Securities LLC

Odonate Therapeutics LLC

Odonate Therapeutics Inc. (developing taxane therapies for cancer) netted $117.3m via a public offering of 4.75 million common shares at $26. Proceeds are earmarked for continued development of tesetaxel, which is in Phase II/III studies for metastatic breast cancer and metastatic triple-negative breast cancer. (Jun.)

Investment Banks/Advisors: Cowen & Co. LLC; Jefferies & Co. Inc.; LifeSci Capital LLC

Prevail Therapeutics Inc.

Neurodegenerative-focused Prevail Therapeutics Inc. (adeno-associated virus (AAV)-based vectors for gene therapies) netted $116.3m in its initial public offering of 7.4 million shares at $17, the midpoint of its anticipated range. (Jun.)

Investment Banks/Advisors: Bank of America Merrill Lynch; Cowen & Co. LLC; Morgan Stanley & Co.; Wedbush PacGrow Life Sciences

Resverlogix Corp.

Resverlogix Inc. (epigenetics-based drug development) netted $Cdn14m ($10.5m) through a public offering of 3.8 million units at $Cdn4. Each unit consisted of one common share and a four-year warrant to purchase a share at $4.60. HC Wainwright was the placement agent. Proceeds will fund ongoing R&D, including the BETonMACE Phase III trial with lead candidate apabetalone, which is evaluating if treatment with apabetalone compared to placebo increases the time to first occurrence of a major adverse cardiac event in high-risk cardiovascular disease patients with Type II diabetes and low levels of HDL. (Jun.)

Investment Banks/Advisors: Bloom Burton & Co.; HC Wainwright & Co.

Rockwell Medical Inc.

Rockwell Medical Inc. (treatments for end-stage renal disease and chronic kidney disease) sold 5.8 million common shares at $3 piece in a public offering that netted the company $16.4m. Funds will support commercialization of dialysate Triferic (ferric pyrophosphate citrate), and will also go towards commercialization of intravenous Triferic once it is approved. (Jun.)

Investment Banks/Advisors: Cantor Fitzgerald & Co.; HC Wainwright & Co.; Piper Jaffray & Co.

Scholar Rock Holding Corp.

Scholar Rock Holding Corp. (therapeutic antibodies based on protein growth factor signaling modulation) netted $42.3m in a public offering of 3 million shares at $15. The company will use the proceeds to support ongoing development of lead antibody candidate SRK015 (in Phase II for spinal muscular atrophy); preclinical and initial Phase I proof-of-concept trial activities for SRK181 (a transforming growth factor beta 1 inhibitor for cancers resistant to checkpoint blockade therapies); and preclinical studies for other pipeline programs. (Jun.)

Investment Banks/Advisors: BMO Financial Group; Cowen & Co. LLC; Jefferies & Co. Inc.; Wedbush PacGrow Life Sciences

Sellas Life Sciences Group Inc.

Sellas Life Sciences Group Inc. netted $13.5m through a public offering in which the company sold 23.36 million common shares at $0.15 (plus five-year warrants to buy 23.36 million common at $0.50) and 73.6 million pre-funded warrants at $0.1499 (along with warrants to purchase 73.6 million common at $0.50). Most of the funds will help the company initiate a pivotal Phase III trial with lead project galinpepimut-S for acute myeloid leukemia and continue a Phase I/II trial of the candidate in combination with pembrolizumab for blood and solid cancers. (Jun.)

Investment Banks/Advisors: Maxim Group LLC

Seres Therapeutics Inc.

Microbiome therapeutics developer Seres Therapeutics Inc. netted $56.4m through a follow-on public offering of 26.67 million common shares at $2.25 each. (Jun.)

Investment Banks/Advisors: Cowen & Co. LLC; Goldman Sachs & Co.

Sesen Bio Inc.

Sesen Bio Inc. (oncology) netted $28.2m through a public offering of 20.4 million common shares at $1.47. Investors also received one-year warrants to purchase 20.4 million more shares at the purchase price. Proceeds will support continued development, regulatory and manufacturing activities, and future commercialization of Vicinium (oportuzumab monatox) for non-muscle invasive bladder cancer (NIMBC). (Jun.)

Investment Banks/Advisors: Canaccord Genuity Inc.

Sorrento Therapeutics Inc.

Sorrento Therapeutics Inc. (immuno-oncology and pain management) netted $23.5m through a public offering of 8.33 million common shares at $3. Each share was also sold with the following warrants: ten-year series A warrant to purchase a common share at $3.75; nine-month series B warrant for one common at $3; and a ten-year series C warrant, to be exercised at $3.75 if a corresponding series B warrant was exercised. Proceeds will support continued development of the company's RTX (resiniferatoxin, for cancer pain), CEA CAR-T (liver tumors), and CD38 CART (multiple myeloma) programs. (Jun.)

Investment Banks/Advisors: HC Wainwright & Co.; JMP Securities LLC

Stoke Therapeutics Inc.

Genetic disease-focused Stoke Therapeutics Inc. (antisense oligonucleotides to upregulate gene expression) netted $132m in its initial public offering of 7.9 million shares at $18. The company originally planned to sell 6.7 million shares at a $14-16 range. (Jun.)

Investment Banks/Advisors: Canaccord Genuity Inc.; Cowen & Co. LLC; Credit Suisse Group; JP Morgan & Co.

The Medicines Co.

The Medicines Co. (mostly focused in the cardiovascular disease space) netted $141.4m through the follow-on public sale of 4.55 million common shares at $33 each. The company will use the funds for ongoing development of its Phase III inclisiran for homozygous familial hypercholesterolemia. (Jun.)

Investment Banks/Advisors: Goldman Sachs & Co.; JP Morgan & Co.

Zymeworks Inc.

ZymeWorks Inc. (bispecific antibodies and ADCs for cancer) netted $189m through its latest public offering. The company sold 7 million common shares (including the overallotment) at $18, and to a certain investor sold 4.17 million pre-funded warrants at $17.9999 apiece. ZymeWorks will use some of the proceeds to support continued development of the bispecific antibody ZW25 as a single and combination therapy for HER2-expressing solid tumors; ZW49, a bispecific antibody-conjugate also for HER2-expressing tumors; and other preclinical pipeline programs. (Jun.)

Investment Banks/Advisors: JP Morgan Chase & Co.; Ladenburg Thalmann & Co. Inc.; Raymond James & Associates Inc.; Stifel Nicolaus & Co. Inc.; Wells Fargo Securities LLC

RESEARCH, ANALYTICAL EQUIPMENT & SUPPLIES

Financings

Adaptive Biotechnologies Corp.

Adaptive Biotechnologies Corp. (immunosequencing diagnostics) netted $279m in its oversubscribed initial public offering of 15 million common shares at $20 each on the Nasdaq. The company planned to sell 12.5 million shares between $15 and $17 each. (Jun.)

Investment Banks/Advisors: BTIG LLC; Bank of America Merrill Lynch; Cowen & Co. LLC; Goldman Sachs & Co.; Guggenheim Partners LLC; JP Morgan & Co.; William Blair & Co.