Novartis AG is acquiring Mariana Oncology Inc. for $1 billion up front and as much as $750 million in potential milestone payments. Watertown, Mass.-based Mariana has developed a portfolio of peptide-based radiopharmaceuticals targeting solid tumors. The company’s lead program, MC-339, is a radioligand therapy for small-cell lung cancer.

Allarity’s stenoparib phase II positive for late-stage ovarian cancer

Shares of Allarity Therapeutics Inc. (NASDAQ:ALLR) climbed about 18% to $1.62 on May 2 following word that a substantial clinical benefit seen with its PARP inhibitor, stenoparib, in advanced recurrent ovarian cancer justified the stopping of a phase II trial, providing the company with clinical proof of concept and enabling it to now prep for a registrational study. Patients enrolled in the phase II were prescreened by the company’s drug response predictor companion diagnostic to select patients with a certain gene expression signature that increases the likelihood of a positive response to treatment. Stenoparib is an orally available, small-molecule inhibitor of PARP1/2 and telomerase maintenance enzymes (Tankyrase 1 and 2). In the phase II, the drug, given twice daily, showed a “clear clinical benefit, including tumor shrinkage and long-term disease stability” in ovarian cancer patients who were heavily pretreated and had a limited life expectancy, the company said.

Regulatory stresses, interest rates a continuing drag

By now, the story of last year’s dismal U.S. capital markets is hardly news. But when combined with increasing regulatory stresses, there are elements of that story giving some Street-watchers pause, even as the market begins to show signs of recovery. What could be worrisome for biopharma and device startups is the shift in venture capital (VC)-backed IPOs from the life sciences sector to the technology industry. Over the past several years, life science companies have accounted for more than half of the U.S.’s VC-backed IPOs each year. But last year, their share dropped to 42%, with technology sector VC-backed IPOs outpacing those in life sciences for the first time since at least 2017, according to Wilmerhale’s 2024 Venture Capital Report. Michael Abrams, managing partner of Numerof & Associates, attributed that shift to continuing high interest rates and the uncertainty created by Medicare prescription drug price negotiations.

Metagenomi and Moderna walk away from gene editing deal

Ending a late 2021 deal that was potentially worth billions, Moderna Inc. and Metagenomi Inc. are going their separate ways. The two had been collaborating on gene editing R&D to develop therapies for treating serious genetic diseases. Moderna said it agreed with Metagenomi to end the deal as “Moderna continues to strategically prioritize its research and development investments.” Metagenomi also was short on detail but agreed the termination was mutual. Metagenomi regains the full global rights to its gene editing technology, including base editors and RNA-mediated integration systems, that Moderna had the exclusive rights to. Metagenomi’s stock (NASDAQ:MGX) stock was down 16% at midday, with shares at $5.90 each.

China‘s Sciwind sells S. Korea rights of GLP-1 drug to HK Inno.N

South Korea’s HK Inno.N Corp. said on May 2 that it gained exclusive development and commercial rights to Hangzhou, China-based Sciwind Biosciences Co. Ltd.’s once-weekly, injectable glucagon-like peptide-1 (GLP-1) agonist, XW-003 (ecnoglutide), in South Korea to treat type 2 diabetes and obesity. Aside from an unspecified up-front payment and potential recurring royalties, specific terms of the deal were not disclosed, a HK Inno.N official confirmed to BioWorld; however, the company plans to roll out a Korea-based phase III bridging study of ecnoglutide for type 2 diabetes and an IND application to the MFDS for a phase III study for obesity by the end of 2024.

Also in the news

Abcellera, Aileron, Aprea, Atsena, Biocardia, Boehringer Ingelheim, Bridgebio, Cocrystal, Context, Corvus, Delphia, Denali, Denovo, Ellipses, Eluminex, Gilgamesh, Iktos, Immunome, Ipsen, Jacobio, Johnson & Johnson, Journey Medical, Kalvista, Kazia, Lipocine, Luxa, Merck, Mindbio, Neurocrine, Nvelop, Palisade, PDS, Pluri, Remepy, Rentschler, Reunion, Sellas, Shape, TFF, Vicinitas