Our H1 2024 Endocrine and Metabolic review goes deeper into key R&D partnerships, M&A activity, and venture funding. In April, TreeFrog Therapeutics partnered with Vertex to develop stem cell therapies for type 1 diabetes, securing $25 million upfront with potential milestones totaling $755 million. In May, Metaphore Biotechnologies struck a $600 million deal with Novo Nordisk to develop GLP-1 receptor agonists for obesity. Omega Therapeutics also teamed up with Novo Nordisk in January for an epigenomic controller for obesity, with up to $532 million in potential earnings.
Notable M&A included Sanofi’s $2.2 billion acquisition of Inhibrx, gaining a Phase II treatment for Alpha-antitrypsin (AAT) deficiency. AstraZeneca acquired Amolyt Pharma for $800 million in March, targeting hypoparathyroidism and acromegaly, and secured an option to buy SixPeaks Bio for its obesity treatments.
Venture funding remained robust, with Hercules CM raising $400 million in May to develop weight-loss drugs licensed from Jiangsu Hengrui. BioAge Labs raised $170 million in February for a muscle-preserving drug, and Aardvark Therapeutics secured $85 million in May for trials targeting hyperphagia in Prader-Willi Syndrome. Details to follow.
Endocrine / Metabolic R&D Partnerships by Tech Grouping – H1 2024
During H1 2024, 7 R&D partnerships took place in endocrine and metabolic technologies, splitting into two, small molecules dominated by 6 totaling $1.2 billion, including $210 million in upfront payments. Meanwhile, a single cell therapy deal stood out, valued at $780 million with $25 million upfront. Collectively, they raised $2.0 billion, with $235 million in upfront commitments.
Top Endocrine / Metabolic R&D partnerships – H1 2024
TreeFrog Therapeutics development and commercialization deal with Vertex – April 2024
TreeFrog Therapeutics granted Vertex exclusive global rights to develop and commercialize two stem cell therapies for type 1 diabetes, utilizing TreeFrog’s C-Stem technology. TreeFrog will receive $25 million upfront, an undisclosed equity investment, and up to $215 million in development milestones. They are also eligible for up to $540 million in clinical, regulatory, and commercial milestones, plus tiered single-digit royalties for future products. Vertex will cover all R&D expenses.
Metaphore Biotechnologies development and commercialization deal with Novo Nordisk – May 2024
Metaphore granted Novo Nordisk exclusive rights to develop two GLP-1 receptor agonists for obesity using AI and ML from Metaphore’s MIMIC platform. Metaphore could earn up to $600 million, including upfront, development, and commercial milestones, with Novo reimbursed for R&D costs. Metaphore is also eligible for tiered royalties.
Omega Therapeutics develops and commercialization deal with Novo Nordisk – January 2024
Omega Therapeutics granted Novo Nordisk exclusive global rights to develop and commercialize an epigenomic controller for obesity treatment using Omega’s RNA-based technology. Omega could receive up to $532 million, including upfront, development, regulatory, commercial milestones, and royalties, specific breakdown was not disclosed.
Endocrine / Metabolic M&A by Tech Grouping – H1 2024
During H1 2024, the endocrine and metabolic M&A space saw 3 major deals centered on biologics, antibodies, DNA, RNA, and proteins. The total value, including contingent payments, reached $3.3 billion, while the upfront cash value was $2.5 billion.
Top Endocrine / Metabolic M&A – H1 2024
Sanofi acquiring Inhibrx – January 2024
Sanofi acquired Inhibrx, securing INBRX-101, a Phase II recombinant human AAT-Fc fusion protein for Alpha-antitrypsin (AAT) deficiency. Inhibrx’s other assets were spun off into Inhibrx Biosciences, a new entity funded with $200 million from Sanofi, which retains an 8% stake. Inhibrx shareholders received $30 per share, up to $800 million in contingent value rights (CVRs), and 1 share in the new company for every 4 held. Sanofi assumed $209 million in debt, bringing the total deal value to $2.2 billion, at $36.30 per share, a 9% premium.
AstraZeneca acquiring Amolyt Pharma – March 2024
AstraZeneca acquired Amolyt Pharma, which had critical assets, including the Phase III drug Eneboparatide (AZP-3601) for hypoparathyroidism, Phase II AZP-3813 for acromegaly, and preclinical AZP-40XX for primary hyperparathyroidism. Amolyt Pharma received $800 million upfront and could earn up to $250 million in regulatory milestones. The acquisition was completed on July 15, 2024.
AstraZeneca option to acquire SixPeaks Bio – May 2024
SixPeaks granted AstraZeneca an option to acquire the company, focusing on developing obesity treatments such as an oral GLP-1 molecule, a long-acting amylin, and a GLP-1/glucagon dual-active peptide. SixPeaks will receive $80 million in upfront and near-term payments (breakdown not disclosed) and has also raised $30 million in a series A round led by Versant. Upon exercising the acquisition option, SixPeaks shareholders will receive a price to be agreed upon.
Endocrine / Metabolic Venture Activity by Tech Grouping – H1 2024
During H1 2024, 7 venture funding rounds took place in the endocrine and metabolic sector, raising $719 million. Small molecule ventures led with 3 rounds, securing $655 million. Biologics, including antibodies, DNA, RNA, and proteins, also had 3 rounds, raising $51 million. A single immunotherapy round brought in $13 million, reflecting a targeted but smaller investment.
Top Endocrine / Metabolic Ventures – H1 2024
Hercules CM – Series Unspecified – $400M – May 2024
Hercules CM NewCo, a biotech startup backed by Bain Capital, RTW, Atlas Venture, and Lyra Capital, raised $400 million in H1 2024. The company licensed incretin-based weight loss drugs from Jiangsu Hengrui Pharmaceuticals, agreeing to $110 million in upfront and near-term payments and granting Hengrui a 20% equity stake. Hercules CM NewCo may pay up to $200 million in clinical and regulatory milestones, with potential payments reaching $5.7 billion if sales targets are met.
BioAge – Series D – $170M – February 2024
BioAge Labs raised $170 million in series D funding, led by Sofinnova Investments, with participation from Amgen, Eli Lilly, and Andreessen Horowitz. The funds will support the development of BioAge’s experimental pill, designed to complement weight-loss drugs like Wegovy and Zepbound by mimicking an exercise-activated molecule to preserve muscle mass. Phase 1 trials showed significantly less thigh muscle loss in patients taking the drug than on a placebo.
Aardvark Therapeutics – Series C – $85M – May 2024
Aardvark Therapeutics raised $85 million in an oversubscribed series C round led by Decheng Capital, with participation from Cormorant Asset Management, Surveyor Capital, and others. The funds will support clinical trials for ARD-101, targeting hyperphagia in Prader-Willi Syndrome, and explore its complementary use with GLP-1 obesity treatments. Additionally, the funding will advance other pipeline programs.
Also check out Endocrine And Metabolic Disease Biopharma R&D Partnerships In 2023