Scynexis Inc. pleased Wall Street with news of an exclusive license agreement signed by GSK plc for the antifungal Brexafemme (ibrexafungerp), cleared by the U.S. FDA for vulvovaginal candidiasis (VVC) and for reduction in the incidence of recurrent VVC. This deal gives GSK rights to commercialize Brexafemme for both indications while work continues with ibrexafungerp, in phase III trials for the potential treatment of invasive candidiasis. GSK will make an up-front payment to Scynexis of $90 million. Terms also include more milestone-based rewards potentially totaling $503 million. Shares of Scynexis (NASDAQ:SCYX) were trading midday at $2.82, up $1.15, or 68%.

EIP and Diffusion will merge to become Cervomed with Lewy body disease study set for this year

Privately held EIP Pharma Inc. and publicly traded Diffusion Pharmaceuticals Inc. are merging in an all-stock deal to develop oral stress kinase inhibitors. EIP’s lead candidate is neflamapimod, which is being prepared for a phase IIb study set to begin sometime in the second quarter of 2023 in treating Lewy body disease. Data for the placebo-controlled portion of the study are expected in the second half of 2024. The merger is structured so that EIP merges with a newly created subsidiary of Diffusion. The combined company is expected to be renamed Cervomed and will trade on Nasdaq under the ticker symbol CRVO. The merger is anticipated to close during the middle of 2023.

Building ‘Confodence’: Confo enters potential $182M GPCR pact with Daiichi Sankyo

Confo Therapeutics NV closed out March in much the same way as it began the month – with a deal. The company has entered a collaboration agreement with Daiichi Sankyo Co. Ltd. to generate brain-penetrant small-molecule agonists to an undisclosed G protein-coupled receptor (GPCR) implicated in central nervous system diseases. Confo could earn up to €168 million (US$182 million) from the pact. That headline number includes an undisclosed up-front payment, as well as potential development and commercial milestones. It would also receive sales royalties, should a commercial product emerge from the alliance.

Alternative, antagonist approach to GI diseases unveiled by ThirtyFiveBio 

The role of G protein-coupled receptor 35 (GPR35) in gastrointestinal (GI) diseases has been genetically validated for some time, with several pharmaceutical companies advancing programs designed to tackle the target; however, most of these efforts to date have focused on increasing GPR35 activity. ThirtyFiveBio’s approach is different: The newly founded virtual biotech company believes that antagonizing the target and thereby blocking unwanted GPR35 signaling may be a more appropriate way to address GI conditions, including digestive tract cancers.

US senators call for ‘new rules of the road’ for PBMs

Whether it’s bills calling for more transparency from pharmacy benefit managers (PBMs) or hearings held in search of a new roadmap to modernize the U.S. drug supply chain, Congress is scrutinizing and trying to clamp down on the role PBMs are playing in raising drug prices. The range of concerns expressed at a Senate Finance Committee hearing today was both sweeping and bipartisan as senators agreed that if they were starting from scratch to create a drug supply model, it would look nothing like what’s in place. In opening the hearing, committee Chair Ron Wyden (D-Ore.) cited the need for “new rules of the road” for PBMs, because what may have made sense 20 or 30 years ago no longer makes sense.

Also in the news

Achieve, Affimed, Aim, Akari, Alector, Apollomics, Aquestive, Aridis, Astrazeneca, Avadel, Biogen, Biomea Fusion, Bioxytran, Blueprint Medicines, Caribou, Celularity, Citryll, Corcept, Eloxx, Epicentrx, Evaxion, Flare, Fogpharma, Galimedix, Hansa, Harmony, Janssen, Juno, Netris, Pharmanovia, Pharmather, Precigen, Rapt, Redhill, Regeneron, Salubris, Smart Immune, Sorrento, Spiral, Syndax, Théa, Transcenta, Trobix, Unravel, Viking