Our Q3 2024 healthcare and life sciences overview explores significant developments across R&D, M&A, ventures, and IPOs. GSK and Flagship Pioneering partnered on respiratory and autoimmune treatments with a $150 million upfront and up to $720 million in future payments, while Dren Bio and Novartis secured a $125 million deal for cancer therapies, with potential earnings of $2.9 billion. ImmuneOnco teamed with Instil Bio for cancer therapy commercialization, receiving $10 million upfront and up to $2.1 billion in milestones.
M&A highlights include Eli Lilly’s $3.2 billion acquisition of Morphic for inflammatory bowel disease treatments, Semnur Pharmaceuticals merging with Denali Capital in a $2.5 billion deal for non-opioid pain therapy, and Johnson & Johnson’s $600 million acquisition of V-Wave, with an additional $1.1 billion in potential payments.
In ventures, Candid Therapeutics raised $370 million for autoimmune therapies, ArsenalBio secured $325 million for cell therapies targeting solid tumors, and GondolaBio raised $300 million for rare genetic disease programs. Key IPOs included Bicara Therapeutics, raising $362 million for cancer trials; Emcure Pharmaceuticals, securing $234 million for generic and specialty medicines; and Zenas BioPharma, raising $259 million for immunology therapies. Details to follow.
Global Healthcare and Life Sciences R&D Partnerships
In Q3 2024, the global healthcare and life sciences sector recorded 127 R&D partnerships worth $33.4 billion, with $1.4 billion in upfront cash and equity. A slowdown from Q2 2024, with 161 deals totaling $41.2 billion and $2.3 billion in upfront commitments. Despite the dip, the total for both quarters reached 288 deals valued at $74.7 billion, with $3.8 billion in upfront payments.
Top R&D Partnerships in Q3 2024
GSK research partnership with Flagship Pioneering – July 2024
GSK partnered with Flagship Pioneering to develop up to 10 new medicines and vaccines, focusing on respiratory and autoimmune diseases. GSK holds exclusive licensing options for all therapies. Both parties will jointly fund $150 million upfront. If GSK opts to license, Flagship and its bioplatform companies could earn up to $720 million in additional payments and tiered royalties.
Dren Bio development and commercialization deal with Novartis – July 2024
Dren Bio granted Novartis exclusive rights to develop and commercialize bispecific antibodies for cancer, combining Dren’s cell depletion and myeloid engager platforms with Novartis’s expertise. Novartis will handle development, manufacturing, and commercialization after candidate selection. Dren Bio will receive $125 million upfront, $25 million in equity, and up to $2.9 billion in potential milestones, plus tiered royalties.
ImmuneOnco development and commercialization deal with Instil Bio – August 2024
ImmuneOnco granted Instil Bio exclusive rights (excluding China) to develop and commercialize its cancer therapies, IMM-2510 (a PD-L1xVEGF bispecific antibody) and IMM-27M (an anti-CTLA-4 antibody) for solid tumors. ImmuneOnco retains rights in Greater China. ImmuneOnco will receive $10 million upfront, with eligibility for up to $40 million in near-term milestones, $270 million in development and regulatory milestones, and $1.8 billion in commercial milestones, plus royalties.
Â
Global Healthcare and Life Sciences M&A
In Q3 2024, the global healthcare and life sciences sector saw 99 M&A deals, with contingent values totaling $100.1 billion and non-contingent cash deals at $95.9 billion. A slight decrease from Q2 2024, with 90 deals with $104.7 billion in contingent payments and $97.7 billion in cash deals. Across both quarters, 189 M&A transactions totaled $204.8 billion in contingent and $193.6 billion in non-contingent cash deals, reflecting steady activity despite the dip in Q3.
Top M&A in Q3 2024
Eli Lilly acquiring Morphic – July 2024
Eli Lilly announced the acquisition of Morphic for $3.2 billion in cash at $57 per share with a 79% premium. Morphic’s lead program, MORF-057, is a Phase 2 A4B7 integrin inhibitor for inflammatory bowel disease (IBD). The pipeline includes preclinical programs like MORF-088 for myelofibrosis and solid tumors, and additional undisclosed programs targeting pulmonary hypertension, Crohn’s disease, and ulcerative colitis. Lilly completed the acquisition on August 16, 2024.
Semnur Pharmaceuticals reverse merging with Denali Capital Acquisition Corp. in a SPAC transaction – July 2024
Semnur Pharmaceuticals, a subsidiary of Scilex, is reverse merging with Denali Capital Acquisition Corp. in a SPAC deal. The new publicly traded entity will focus on developing Semnur’s SP-102, a Phase III non-opioid injectable gel for lumbosacral radicular pain. Semnur shareholders will hold a pre-transaction equity value of up to $2.0 billion, with expected gross proceeds of up to $40 million based on SPAC share redemptions. On September 3, 2024, Semnur completed the acquisition of Denali Capital with an updated equity value of up to $2.5 billion.
Johnson & Johnson acquiring V-Wave – August 2024
Johnson & Johnson announced the acquisition of V-Wave, whose lead assets include the Ventura Interatrial Shunt (IAS) for congestive heart failure and the RELIEVE-HF device, currently in clinical trials for advanced heart failure. V-Wave shareholders will receive $600 million upfront and are eligible for up to $1.1 billion in regulatory and commercial milestone payments.
Global Healthcare and Life Sciences Venture ActivityÂ
In Q3 2024, global healthcare and life sciences venture activity saw 253 funding rounds, raising $11.2 billion, down from 311 rounds and $12.8 billion in Q2. Across both quarters, there have been 564 rounds, generating $24.0 billion. A decline in both number of rounds and amount raised.
Top Venture Funding in Q3 2024
Candid Therapeutics Series Unspecified $370M – September 2024
Candid Therapeutics, a biotech company focused on developing novel treatments for autoimmune diseases, officially launched with a focus on T-cell engager (TCE) antibodies to selectively deplete B lymphocytes, critical drivers in autoimmune conditions like rheumatoid arthritis and myasthenia gravis. Candid acquired Vignette Bio and TRC-2004 through a three-way merger to strengthen its leadership in TCE therapies. The company raised over $370 million from investors, with Venrock Healthcare Capital Partners, Fairmount, TCGX, and venBio Partners co-leading the financing.
ArsenalBio Series C $325M September – 2024
ArsenalBio secured $325 million in an oversubscribed series C financing round to advance its programmable cell therapy programs through clinical development. The funds will support its lead programs and innovation in T-cell engineering technology, including logic gating, for solid tumor treatments. New investors like ARCH Venture Partners and Regeneron Ventures joined the round, along with existing backers such as Bristol-Myers Squibb, SoftBank Vision Fund 2, and the Parker Institute for Cancer Immunotherapy.
GondolaBio Private $300M – August 2024
BridgeBio Pharma, after launching a dedicated oncology unit earlier this year, is now divesting drug candidates for rare genetic diseases through a new joint venture, GondolaBio. Backed by $300 million in financing from investors like Viking Global and Sequoia Capital, GondolaBio will focus on early-stage programs for conditions such as erythropoietic protoporphyria, alpha-1 antitrypsin deficiency, and tuberous sclerosis complex. BridgeBio will initially hold a 45% stake, which may decrease with future capital contributions as it shifts its focus to late-stage assets targeting cardiorenal and genetic disorders.
Global Healthcare and Life Sciences IPO ActivityÂ
In Q3 2024, the global healthcare and life sciences sector recorded 15 IPOs, raising $1.8 billion, up from 8 IPOs and $1.6 billion in Q2. Across both quarters, there were 23 IPOs, raising $3.4 billion, indicating upward momentum in IPO activity as the year advances.
Top IPO Activity in Q3 2024
Bicara Therapeutics – IPO – $362M – August 2024
Bicara Therapeutics raised $362 million in gross proceeds from its IPO, selling 20,125,000 shares at $18 per share, including an additional 2,625,000 shares for underwriters. The company listed on the Nasdaq under the ticker ‘BCAX,’ with shares opening at $26.25, a 31% premium, and closing at $25.41 on September 16. Bicara will use the funds to support a Phase II/III trial for its lead asset, ficerafusp alfa, targeting head and neck squamous cell carcinoma.
Emcure Pharma – IPO – $234M – July 2024
Emcure Pharmaceuticals completed its IPO in July 2024, raising approximately $234 million. The offering comprised $96 million (INR 8.0 billion) from new shares and $138 million (INR 1.15 billion) from existing shareholders, including promoters and Bain Capital affiliates. The share price was set between $11.55 and $12.15. Emcure Pharmaceuticals specializes in developing, manufacturing, and marketing generic and specialty medicines across various therapeutic areas, including oncology, infectious diseases, and gynecology.
Zenas – IPO – $259M – August 2024
Zenas BioPharma, a clinical-stage biopharmaceutical focused on immunology-based therapies, has priced its upsized IPO at $17 per share, offering 13,235,294 shares, all provided by Zenas. The offering is expected to generate approximately $225 million in gross proceeds before underwriting discounts and expenses. Additionally, the underwriters have a 30-day option to purchase up to 1,985,294 extra shares at the IPO price, bringing the total to 15,220,588 shares sold and raising $259 million.
Also check out Healthcare and Life Sciences Quarterly Overview – Q2 2024
