Endocrine / Metabolic R&D Partnerships, M&A, Ventures and IPOs by TA – H1 2024 Review

Endocrine / Metabolic R&D Partnerships, M&A, Ventures and IPOs by TA - H1 2024 Review

Our H1 2024 endocrine and metabolic review highlights significant activity across R&D partnerships, M&A, venture funding, and IPOs primarily targeting diabetes, obesity, and metabolic disorders. Key R&D partnerships included TreeFrog Therapeutics April 2024 collaboration with Vertex to develop stem cell therapies for type 1 diabetes, potentially worth $540 million in milestones. In May, Metaphore Biotechnologies partnered with Novo Nordisk on obesity treatments, with the deal valued at up to $600 million in milestones. Similarly, Omega Therapeutics secured a deal with Novo Nordisk in January for an epigenomic controller targeting obesity, potentially earning $532 million.

On the M&A front, Sanofi completed a $2.2 billion acquisition of Inhibrx in January, focusing on treatments for Alpha-antitrypsin (AAT) deficiency. In March, AstraZeneca acquired Amolyt Pharma for $800 million, gaining assets to treat hypoparathyroidism and acromegaly. AstraZeneca also obtained an option to acquire SixPeaks Bio in May, a deal initially valued at $80 million, to develop obesity therapies.

Venture funding remained robust, with Hercules CM raising $400 million in May to develop weight-loss drugs licensed from Jiangsu Hengrui Pharmaceuticals. BioAge raised $170 million in February to advance its lead compound for obesity treatment in collaboration with Eli Lilly. Endogenex secured $88 million in June to support its diabetes-focused ReCET procedure. In IPO, Fractyl Health raised $110 million in January, focusing on novel therapies for type 2 diabetes to address the root causes of metabolic diseases. Details to follow.

 

Endocrine / Metabolic R&D Partnerships

Endocrine / Metabolic - R&D Partnerships

During H1 2024, the endocrine and metabolic sectors saw 15 R&D partnerships valued at $3.2 billion. Q2 was particularly active, with 10 deals worth $1.6 billion and $175 million in upfront equity. In contrast, Q1 recorded 5 deals totaling $1.6 billion but with $60 million in equity. For comparison, H2 2023 had 13 deals valued at $3.0 billion, with Q4 contributing 7 deals worth $2.7 billion and $190 million in equity, while Q3 had just 6 deals totaling $327 million and $22 million in equity.

 

Top Endocrine / Metabolic R&D partnerships in 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 using TreeFrog’s C-Stem technology. Vertex will cover all R&D costs. TreeFrog will receive $25 million upfront, an undisclosed equity investment, and up to $215 million in milestones for scaling islet cell production. Additionally, TreeFrog is eligible for up to $540 million in clinical, regulatory, and commercial milestones across two future products, plus tiered royalties.

Metaphore Biotechnologies development and commercialization deal with Novo Nordisk – May 2024

Metaphore granted Novo Nordisk exclusive rights to develop and commercialize up to two GLP-1 receptor agonists for obesity using its AI-driven MIMIC platform. Metaphore could receive up to $600 million in upfront, development, and commercial milestones. Novo Nordisk will also reimburse R&D costs and invest in a future financing round for Metaphore. Additionally, Metaphore is eligible for tiered royalties.

Omega Therapeutics develops and commercialization deal with Novo Nordisk – January 2024

In January 2024, Omega Therapeutics granted Novo Nordisk exclusive global rights to develop and commercialize an epigenomic controller for obesity treatment. Omega is eligible for up to $532 million in upfront development, regulatory, commercial milestones, and royalties.

 

Endocrine / Metabolic M&A

Endocrine / Metabolic - M&A

During H1 2024, the endocrine and metabolic M&A sector recorded 6 deals, totaling $3.4 billion in contingent payments and $2.5 billion in cash. Q1 led with $3.3 billion in contingent value and $2.5 billion in cash, while Q2 saw 3 deals but only $80 million in contingent value and no cash. In comparison, H2 2023 had 9 deals, with Q4 dominating at $3.1 billion in contingent payments and $2.7 billion in cash. Q3 was quieter, with $2.2 billion in contingent value and $200 million in cash. The period saw $8.7 billion in contingent value and $5.4 billion in cash across 15 deals.

 

Top Endocrine / Metabolic M&A in H1 2024

Sanofi acquiring Inhibrx for $2.2B – January 2024

Sanofi acquired Inhibrx for $2.2 billion, gaining rights to INBRX-101, a Phase II drug for Alpha-antitrypsin (AAT) deficiency. Inhibrx’s non-101 assets were spun off into Inhibrx Biosciences, with Sanofi investing $200 million for an 8% stake. Inhibrx shareholders received $30 per share plus an additional $5 contingent on regulatory milestones. Sanofi also assumed $209 million of Inhibrx’s debt, completing the acquisition in May 2024.

AstraZeneca acquiring Amolyt Pharma – March 2024

AstraZeneca announced the acquisition of Amolyt Pharma, gaining access to its lead assets: Phase III Eneboparatide (AZP-3601) for hypoparathyroidism, Phase II AZP-3813 for acromegaly, and a preclinical asset for hyperparathyroidism. Amolyt will receive $800 million upfront, with potential regulatory milestones of up to $250 million. 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 to develop obesity therapies, including an oral GLP-1 molecule, long-acting amylin, and a GLP-1/glucagon dual-active peptide. SixPeaks will receive $80 million in upfront and near-term payments, and it raised an additional $30 million in a series A round led by Versant. The acquisition price for shareholders will be determined when AstraZeneca exercises its option.

 

Endocrine / Metabolic – Venture Funding Activity 

Endocrine / Metabolic - Venture Funding Activity

During H1 2024, the endocrine and metabolic sectors secured $1.3 billion across 22 venture funding rounds. Q2 was the strongest, with 13 rounds raising $790 million, while Q1 saw 9 rounds generating $459 million. In contrast, H2 2023 had more rounds but raised less overall, with 31 rounds collecting $1.8 billion. Q3 2023 led with $1.4 billion from 16 rounds, while Q4 saw $330 million across 15 rounds. Across these 4 quarters, 53 funding rounds brought in $3.0 billion.

 

Top Endocrine / Metabolic Ventures in H1 2024

Hercules CM – Series Unspecified – $400M – May 2024

Hercules CM NewCo, a newly formed biotech company, secured $400 million from Bain Capital Life Sciences, RTW Investments, Atlas Venture, and Lyra Capital. The company licensed a portfolio of weight-loss drugs from Jiangsu Hengrui Pharmaceuticals for an upfront and near-term payment of $110 million and a 20% equity stake. Hengrui is eligible for up to $200 million in clinical and regulatory milestones and up to $5.7 billion based on future sales targets.

BioAge – Series D – $170M – February 2024

BioAge Labs raised $170 million in an oversubscribed series D round led by Sofinnova Investments to support Phase 2 development of azelaprag, an oral apelin receptor agonist for obesity. In partnership with Eli Lilly’s Chorus, studies will begin in mid-2024, testing azelaprag alongside Zepbound (tirzepatide) and other incretins. Preclinical data suggest the drug could double the weight loss and enhance body composition when combined with incretin therapies.

Endogenex – Series C – $88M – June 2024

Endogenex secured $88 million in an oversubscribed series C round, with participation from Hatteras Venture Partners, Lumira Ventures, and Orlando Health Ventures. The funding will support the completion of its FDA-approved ReCET clinical trial, an outpatient, endoscopic procedure targeting cellular abnormalities in the duodenum related to type 2 diabetes. ReCET utilizes non-thermal pulsed electric fields to stimulate the body’s natural regenerative processes.

 

Endocrine / Metabolic IPO Activity  

Endocrine / Metabolic - IPO Activity

Over the year, the endocrine and metabolic sectors saw only one IPO in Q1 2024, raising $112 million. There were no IPOs in the rest of H1 2024 or during H2 2023, resulting in just one IPO and $112 million raised across 4 quarters.

 

Top Endocrine / Metabolic IPO in H1 2024

Fractyl – IPO – $111.5M – January 2024

Fractyl Health, a metabolic therapeutics company targeting type 2 diabetes and obesity, priced its IPO at $15 per share, raising approximately $110 million. The offering includes 7.33 million shares, with an option for underwriters to purchase an additional 1.1 million shares. Fractyl seeks to transform metabolic disease treatment by addressing root causes rather than focusing on symptom management. The IPO is set to close on February 6, 2024.

 

Also check out Endocrine, Metabolic R&D Partnerships, M&A and Ventures by Tech – H1 2024 Review

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