Our Q2 2024 neurology review provides an in-depth analysis of R&D and licensing partnerships, M&A deals, and venture activity, highlighting strong momentum in the sector. AC Immune partnered with Takeda in May to license and commercialize ACI-24.060 for Alzheimer’s, securing $100 million upfront and up to $2.1 billion in milestones. In May, AbbVie partnered with Gilgamesh to develop neuroplastogen therapies for psychiatric disorders, with $65 million upfront and potential payments of up to $2.0 billion. In June, Ascidian Therapeutics teamed up with Roche on RNA exon editing therapies for neurological diseases, receiving $42 million upfront and up to $1.8 billion in milestones.
In M&A’s Boston Scientific acquired Silk Road Medical in June for $1.3 billion, targeting stroke prevention devices. In April, Harmony Biosciences acquired Epygenix Therapeutics, offering up to $680 million for epilepsy treatments. In June, Cycle Pharmaceuticals merged with Vanda Pharmaceuticals, valued at $466 million, to focus on neurological therapies.
On the venture side, Reunion Neuroscience raised $103 million in May for its postpartum depression treatment, while Alzheon secured $100 million in June to advance its Alzheimer’s drug. Seaport Therapeutics raised $100 million in April for its anxious depression drug SPT-300. Details to follow.
Neurology R&D Partnerships by Tech Grouping – Q2 2024
In Q2 2024, neurology R&D partnerships by tech saw 13 deals totaling $6.9 billion. Small molecules dominated with 8 deals worth $2.3 billion, including $26 million in upfront cash and equity. However, biologics, antibodies, DNA, RNA, and proteins, despite only 5 deals, attracted a higher value of $4.7 billion, with $187 million in upfront payments.
Top Neurology R&D Partnerships – Q2 2024
AC Immune license option deal with Takeda – May 2024
AC Immune partnered with Takeda, offering an option to license ACI-24.060, an Alzheimer’s vaccine immunotherapy. AC Immune will complete the Phase II ABATE trial, after which Takeda may assume clinical development, regulatory duties, and global commercialization. AC Immune will receive $100 million upfront, potentially earning up to $2.1 billion through milestone payments and royalties.
AbbVie research partnership with Gilgamesh – May 2024
AbbVie partnered with Gilgamesh, securing an exclusive option to license neuroplastogen therapies for neurological disorders. AbbVie will manage development and commercialization if the option is exercised. Gilgamesh receives $65 million upfront and could earn up to $2.0 billion in milestone payments and royalties.
Ascidian Therapeutics development and commercialization deal with Roche – June 2024
In June 2024, Ascidian granted Roche exclusive global rights to develop and commercialize RNA exon editing therapies for neurological diseases. Ascidian leads the early discovery, while Roche handles clinical development and commercialization. Ascidian receives $42 million upfront and may earn up to $1.8 billion in milestones and royalties.
Neurology M&A by Tech Grouping – Q2 2024
Q2 2024, neurology M&A by tech had 8 deals valued at $2.6 billion with contingents and $2.0 billion in cash-only transactions. Small molecule deals led with $1.3 billion with contingents and $686 million in cash-only deals. MedTech, device, digital health, and wearables sector matched small molecules in deal count 4, contributing $1.3 billion with and without contingents, indicating an equal balance between cash and contingent payment.
Top Neurology M&A – Q2 2024
Boston Scientific acquiring Silk Road Medical – June 2024
Boston Scientific announced its acquisition of Silk Road Medical, whose critical stroke prevention devices include the Enroute Transcarotid Neuroprotection System, Enroute Transcarotid Stent System, Enflate Transcarotid RX Balloon Dilatation Catheter, and related guidewire and access kit devices. Silk Road shareholders will receive $27.5 per share in cash, representing a 27% premium over the previous day’s price. The total equity is valued at approximately $1.3 billion.
Harmony Biosciences acquiring Epygenix Therapeutics – April 2024
Harmony Biosciences acquired Epygenix Therapeutics for $35 million upfront. Critical assets include Clemizole hydrochloride (EPX-100), a Phase II treatment for Dravet, Lennox-Gastaut, and Ohtahara Syndromes, and other candidates for developmental epileptic encephalopathies. Harmony may earn up to $645 million in additional milestones.
Cycle Pharmaceuticals reverse merging with Vanda Pharmaceuticals – June 2024
Cycle Pharmaceuticals announced a reverse merger with Vanda Pharmaceuticals to secure a public listing. The merged company will focus on commercializing Vanda’s therapies, including Hetlioz, Fanapt, and Ponvory. Vanda shareholders will receive $8 per share in cash, representing a 63% premium over the prior day’s price. The total deal is valued at $466 million.
Â
Neurology Venture Activity by Tech Grouping – Q2 2024
Q2 2024, neurology companies raised $538 million across 11 funding rounds. Small molecule led with 6 securing $321 million. Formulation technology followed with 2 totaling $133 million, while gene therapy and vectors raised $64 million from 2 rounds. Biologics, including antibodies, DNA, RNA, and proteins, raised $20 million from a single round.
Top Neurology Ventures – Q2 2024
Reunion Neuroscience – Series A – $103M – May 2024
Reunion Neuroscience raised $103 million in a series A to advance its Phase II psychedelic prodrug, RE104, for postpartum depression. The round was led by MPM BioImpact, which acquired Reunion in August 2023, and Novo Holdings. RE104, a prodrug of 4-OH-DIPT, replicates the effects of psilocybin but with a shorter duration of less than 4 hours, compared to 6-8 hours in similar studies.
Alzheon – Series E – $100M – June 2024
Alzheon Inc. raised $100 million in a series E to advance its oral Alzheimer’s drug candidate, ALZ-801 (valiltramiprosate), for early-stage Alzheimer’s. The funding will support completing the Phase III APOLLOE4 trial and regulatory filings later this year. The trial, fully enrolled with 325 patients, focuses on assessing the safety and efficacy of ALZ-801 in early Alzheimer’s patients, specifically those with two ε4 alleles of the APOE gene, who face the highest genetic risk for the disease.
Seaport Therapeutics – Series A – $100M – April 2024
Seaport Therapeutics, a Boston-based clinical-stage biopharma company, raised $100 million in a series A co-led by Arch Venture Partners and Sofinnova Investments, supported by Third Rock Ventures and PureTech Health. The funds will accelerate the development of Seaport’s clinical pipeline and its Glyph platform. The company’s lead candidate, SPT-300, an oral prodrug of the neurosteroid allopregnanolone, is being developed to treat anxious depression.
Also check out our research on Neurology R&D Partnerships, M&A, Ventures and IPOs by TA – Q2 2024 Review
