Our Q1 2025 neurology review showed continued momentum, with strong M&A activity and stable venture funding, despite a slowdown in R&D partnerships. In R&D, Biogen and Stoke signed a $165 million upfront deal (plus $385 million in milestones) for Zorevunersens in Dravet syndrome (Feb 2025). Sanofi and Alloy launched a CNS RNA therapy partnership with $28 million upfront and over $400 million in milestones (Jan 2025). Eli Lilly partnered with Alchemab on ALS and FTD antibodies (up to $415 million, Jan–May 2025), while Hologen AI and MeiraGTx formed a $230 million CNS gene therapy joint venture (Mar 2025).
In M&A, J&J acquired Intra-Cellular Therapies for $14.6 billion (Jan 2025), Bain Capital agreed to buy Mitsubishi Tanabe Pharma for $3.3 billion (Feb 2025), Lantheus acquired Life Molecular Imaging for up to $780 million (Jan 2025), and Globus Medical finalized its $250 milliom Nevro acquisition (Apr 2025). In venture funding, Tenvie launched with $200 million (Jan 2025), Tune raised $175 million for epigenetic HBV therapy (Jan 2025), Latigo secured $150 million for non-opioid pain drugs (Mar 2025), and Atalanta raised $97million for RNAi programs in Huntington’s, epilepsy, Parkinson’s, and Alzheimer’s (Jan 2025).
Neurology R&D partnerships
Neurology R&D partnerships declined sharply in Q1 2025, with only 19 deals totaling $1.9 billion, of which $600 million was paid upfront. A significant drop from Q4 2024, which saw 34 deals valued at $24.3 billion and $2.2 billion upfront. Compared to the previous quarter, deal volume decreased by 44%, total disclosed value dropped by 92%, and upfront payments declined by 73%. Across the last two quarters, 53 neurology deals amounted to $26.1 billion.
Top Neurology R&D Partnerships in Q1 2025
Stoke development and commercialization deal with Biogen – February 2025
Biogen acquired exclusive rights outside North America to develop and commercialize Zorevunersens, an RNA-based therapy targeting the SCN1A gene for Dravet syndrome. Signed at Phase II, the deal includes a $165 million upfront payment and up to $385 million in development and commercial milestones. Biogen will fund 30% of global clinical development, while Stoke retains U.S., Canada, and Mexico rights and leads development. Biogen also holds an option to license future SCN1A-targeting antisense therapies for markets beyond North America.
Alloy development and commercialization deal with Sanofi – January 2025
Sanofi partnered with Alloy to develop RNA-based therapies for central nervous system (CNS) disorders using Alloy’s AntiClastic antisense platform. The collaboration, signed at the discovery stage, grants Sanofi rights to advance undisclosed CNS candidates. Alloy will receive up to $28 million upfront, including near-term preclinical milestones, and is eligible for over $400 million in additional milestones tied to discovery, development, and commercialization. Tiered royalties will apply to any approved products.
Alchemab development and commercialization deal with Lilly – January 2025
Eli Lilly acquired exclusive rights to develop and commercialize five antibody candidates for ALS, leveraging Alchemab’s AI/ML-enabled discovery platform and antibody technologies. While initial financial terms were undisclosed, Alchemab may receive up to $415 million in total payments across upfront, milestone, and commercial stages, plus royalties. On May 5, 2025, the companies nominated ATLX-1282 as the lead candidate for development in ALS and frontotemporal dementia (FTD). Alchemab will oversee early Phase I trials, after which Lilly will lead further development and commercialization.
Hologen AI formed Hologen Neuro AI as a joint venture with MeiraGTx – March 2025
Hologen AI and MeiraGTx launched a joint venture, Hologen Neuro AI, to develop gene therapies for central nervous system (CNS) disorders. The venture’s lead program includes AAV-BDNF for genetic obesity. Hologen AI will contribute its generative AI foundation models, while MeiraGTx, holding a 30% equity stake, will lead clinical development and manufacturing. Hologen Neuro AI received $230 million in initial funding from Hologen AI to support its research and operational activities.
Neurology M&A
Slide2 4Neurology M&A activity accelerated in Q1 2025, with 22 acquisitions totaling $19 billion, $18.5 billion of which was paid in cash up front. This slightly exceeded the 21 deals in Q4 2024 but represented a sharp increase from that quarter’s $4.3 billion in deal value. While deal volume rose just 5%, total value and upfront payments surged more than fourfold, reflecting a pivot toward larger investments. Over the past two quarters, 43 neurology M&A deals were completed, totaling $23.2 billion.
Top Neurology M&A in Q1 2025
Johnson & Johnson acquiring Intra-Cellular Therapies – January 2025
Johnson & Johnson announced its acquisition of Intra-Cellular Therapies for approximately $14.6 billion, paying $132 per share in cash, a 40% premium. The acquisition adds Caplyta, an approved small-molecule therapy for sleep disorders, autism, schizophrenia, bipolar disorder, and depression, to J&J’s neurology portfolio. It also includes a pipeline of CNS and cardiovascular candidates: Phase II lenrispodun for Parkinson’s disease and heart failure, lumateperone deuterated for anxiety and psychosis, ITI-333 for pain, and early-stage assets targeting cancer and neurological indications.
Bain Capital acquiring Mitsubishi Tanabe Pharma – February 2025
Bain Capital announced the acquisition of Mitsubishi Tanabe Pharma for JPY 510 billion (approx. $3.3 billion) in upfront cash. The deal is expected to close in Q3 2025. The acquisition brings a diverse portfolio, led by approved therapies such as Uplizna for neuromyelitis optica spectrum disorder (NMOSD), Zynlonta for relapsed/refractory B-cell lymphoma, Canalia for diabetes, Orkedia for secondary hyperparathyroidism, Invokana for diabetic nephropathy, and Dysval for tardive dyskinesia. The pipeline also includes assets in schizophrenia (MT-210), Parkinson’s disease (ND-0612), hypertension (MT-2765), and several Phase II and III candidates targeting spinal cord injury, myasthenia gravis, systemic sclerosis, and other autoimmune, endocrine, and inflammatory diseases.
Lantheus Medical Imaging acquiring Life Molecular Imaging – January 2025
Lantheus Medical Imaging and Lantheus Radiopharmaceuticals are acquiring Life Molecular Imaging, a diagnostics firm specializing in neurologic and cardiovascular disease detection. The deal includes an upfront payment of $350 million, with up to $400 million in additional earn-outs and milestones. Lantheus will also assume $30 million in future contingent liabilities. Key assets include Neuraceq, a diagnostic radiopharmaceutical for neuroimaging. As part of the transaction, Life Healthcare Group will receive an exclusive license to commercialize Neuraceq and other acquired products in South Africa. The acquisition expands Lantheus’ footprint in precision diagnostics in neurology and cardiology.
Globus Medical acquiring Nevro – February 2025
Globus Medical is acquiring Nevro, a medical device company focused on chronic pain solutions. Nevro’s key product is the HFX spinal cord stimulation platform, including the Senza SCS system, used to treat trunk and limb pain, diabetic neuropathy, and sacroiliac joint pain. The deal values Nevro at $250 million, with shareholders receiving $5.85 per share, reflecting a 17% premium. The acquisition was completed on April 3, 2025, and strengthens Globus Medical’s portfolio in pain and musculoskeletal care through advanced neuromodulation technology.
Neurology Venture Funding Activity
Neurology Ventures saw increased activity in Q1 2025, with 56 funding rounds, up 22% from 46 in Q4 2024, while total funding remained steady at $1.7 billion for both quarters. This shift resulted in smaller average investments, dropping from $37 million to $30 million, suggesting a focus on earlier-stage or lower-risk opportunities. Over the last 2 quarters, 102 neurology deals raised a combined $3.4 billion.
Top Neurology Venture Funding in Q1 2025
Tenvie Therapeutics – Seed – $200M – January 2025
Tenvie Therapeutics launched with $200 million in series A funding to advance treatments for neurological diseases. The round was led by ARCH Venture Partners, F-Prime Capital, and Mubadala Capital, with participation from other top-tier investors. Tenvie is building a pipeline of brain-penetrant and peripherally restricted small molecules targeting three core disease mechanisms: inflammation, metabolic dysfunction, and lysosomal impairment. The portfolio includes programs acquired from Denali Therapeutics and is supported by a seasoned R&D leadership team. Lead candidates, an NLRP3 inhibitor and an allosteric SARM1 inhibitor, are currently in IND-enabling studies. Additional programs target neuroprotective pathways such as TRPML1 and TMEM175, positioning Tenvie as a multi-asset clinical-stage company in the making.
Tune Therapeutics – Series B – $175M – January 2025
Tune Therapeutics Raises $175 million to Advance Epigenetic Therapies. Tune Therapeutics secured over $175 million in financing to accelerate its pipeline of epigenetic therapies. New Enterprise Associates, Yosemite, Regeneron Ventures, and the Hevolution Foundation led the round. Proceeds will primarily advance Tune-401, the company’s clinical-stage candidate for chronic Hepatitis B (HBV), and support the expansion of its gene, cell, and regenerative therapy programs. The funding strengthens Tune’s broader mission to harness epigenome editing for treating chronic and widespread diseases.
Latigo – Series B – $150M – March 2025
Latigo Biotherapeutics raised $150 million in a series B round to advance its clinical-stage pipeline of non-opioid pain treatments, led by highly selective Nav1.8 inhibitors. The funding was led by Blue Owl Capital, with participation from Deep Track Capital, Access Biotechnology, Qatar Investment Authority, Sanofi Ventures, and other major investors. Existing backers also joined the round. Proceeds will support the further development of LTG-001, Latigo’s lead oral Nav1.8 inhibitor for acute pain, which recently demonstrated strong Phase 1 safety and absorption results, as well as LTG-305, currently in Phase 1 trials for chronic pain. Both candidates aim to provide safer, targeted alternatives to opioid-based therapies.
Atalanta Therapeutics – Series B – $97M – January 2025
Atalanta Therapeutics secured $97 million in a series B financing co-led by EQT Life Sciences and Sanofi Ventures to support Phase I trials for RNAi-based therapies targeting Huntington’s disease and a genetic form of childhood epilepsy. The Boston-based company, which focuses on neurological diseases, has now raised $262 million since its 2021 launch, backed initially by Biogen and Genentech. Atalanta’s pipeline leverages its proprietary di-siRNA platform to deliver RNAi therapies across the blood-brain barrier, with additional programs in Parkinson’s and Alzheimer’s.
Also check out Neurology R&D Partnerships, M&A, Ventures and IPOs by TA – Q2 2024 Review
