Our Q2 2024 neurology report reviews financial activity in R&D licensing partnerships, M&A, venture investments, and IPOs. AC Immune partnered with Takeda in May, licensing its Alzheimer’s immunotherapy ACI-24.060 for $100 million upfront, with potential milestones of up to $2.1 billion. AbbVie and Gilgamesh teamed up on neuroplastogen therapies for psychiatric disorders in May, offering $65 million upfront with $2.0 billion in potential milestones. Ascidian and Roche collaborated in June to develop RNA exon editing for neurological diseases, with a $42 million upfront payment and up to $1.8 billion in milestones.
In M&A, Boston Scientific acquired stroke-prevention firm Silk Road Medical in June for $1.3 billion. Harmony Biosciences acquired Epygenix Therapeutics in April for $35 million upfront and up to $645 million in milestones for epilepsy treatments. Cycle Pharmaceuticals reverse-merged with Vanda Pharmaceuticals in June in a $466 million deal.
In venture funding, Tether invested $200 million in Blackrock Neurotech in April, specializing in brain-computer interfaces (BCIs), valuing the company at $350 million. In June, Insightec raised $150 million for its ultrasound platform treating Parkinson’s and essential tremor, while Talkiatry secured $130 million in Q2 for psychiatric care expansion.
In IPOs, Rapport Therapeutics raised $156 million in May to fund focal epilepsy treatment RAP-219, Contineum Therapeutics raised $119 million in March to fund multiple sclerosis and depression studies, and KindlyMD raised $7 million in April for its integrative healthcare model, including medical cannabis.
Neurology R&D Partnerships
During H1 2024, Neurology R&D had 44 partnerships, and Q2 saw 24, totaling $8.9 billion, including $300 million in upfront cash and equity. An increase from Q1, which had 20 valued at $2.5 billion and $100 million upfront. Altogether, H1 2024 reached $11.5 billion in total deal value and $400 million in upfront payments.
Top Neurology R&D Partnerships – Q2 2024
AC Immune and Takeda Alzheimer’s Immunotherapy Partnership – May 2024
AC Immune granted Takeda the option to license and commercialize its Alzheimer’s immunotherapy candidate, ACI-24.060. After AC Immune completes the ABATE trial, Takeda will lead further development and global commercialization. The deal includes a $100 million upfront payment and up to $2.1 billion in potential milestones.
AbbVie and Gilgamesh Neuroplastogen Research Collaboration – May 2024Â
AbbVie partnered with Gilgamesh, obtaining an exclusive option to license its neuroplastogen therapies for psychiatric disorders. Upon option exercise, AbbVie will handle development and commercialization. Gilgamesh will receive $65 million upfront and up to $2.0 billion in option fees and milestones.
Ascidian and Roche RNA Therapeutics Deal – June 2024
Ascidian granted Roche exclusive global rights to develop and commercialize RNA exon editing therapies for undisclosed neurological diseases. Ascidian will handle discovery and preclinical work, while Roche will lead clinical development, manufacturing, and commercialization. Ascidian will receive $42 million upfront, up to $1.8 billion in milestones, and undisclosed royalties.
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 Neurology M&A
During H1 2024, Neurology M&A saw 25 deals. Q2 accounted for 12, totaling $2.6 billion, including contingents, and $1.9 billion in cash, excluding contingents. Q1 had 13 deals, with a smaller total of $500 million in M&A value, both with and without contingents. Overall, Neurology M&A in H1 2024 reached $3.1 billion in total value and $2.5 billion in cash.
Top Neurology M&A – Q2 2024
Boston Scientific Acquiring Silk Road Medical – June 2024
Boston Scientific acquired Silk Road Medical, a company specializing in stroke prevention devices like the Enroute Transcarotid Neuroprotection System and Transcarotid Stent System. Silk Road shareholders will receive $27.50 per share in cash, reflecting a 27% premium. The deal values the acquisition at approximately $1.3 billion.
Harmony Biosciences Acquiring Epygenix Therapeutics – April 2024
Harmony Biosciences acquired Epygenix Therapeutics, whose lead asset, Clemizole Hydrochloride (EPX-100), is in Phase II trials for Dravet, Lennox-Gastaut, and Ohtahara syndromes. Epygenix also has early-stage assets EPX-200, EPX-300, and preclinical EPX-101, targeting developmental epileptic encephalopathies. Harmony will pay $35 million upfront, with potential milestones of up to $130 million for development and regulatory achievements and $515 million in commercial milestones.
Cycle Pharmaceuticals Reverse Merging with Vanda Pharmaceuticals – June 2024
Cycle Pharmaceuticals is merging with Vanda Pharmaceuticals to secure Vanda’s public listing. The merged entity will focus on commercializing Vanda’s critical therapies, including Hetlioz, Fanapt, and Ponvory. Vanda shareholders will receive $8 per share in cash, representing a 63% premium, bringing the deal’s total value to $466 million.
Neurology Venture Funding Activity
During H1 2024, Neurology venture funding was active, with 102 funding rounds completed. Q2 saw 49 rounds, raising $1.8 billion, while Q1 had 53 rounds, raising $1.5 billion. Combined, $3.3 billion was raised during H1.
Top Neurology Venture Fundings – Q2 2024
Tether’s $200M Investment in Blackrock Neurotech – April 2024
Tether invested $200 million in Blackrock Neurotech through its new venture arm, Tether Evo, gaining a majority stake in the neurotechnology firm. Known for its brain-computer interfaces (BCIs), including the NeuroPort Array, Blackrock Neurotech has been helping patients with paralysis and neurological disorders regain control of limbs, prosthetics, and digital devices since 2004. The deal, valued at $350 million, positions Tether as Blackrock’s largest shareholder after thorough due diligence.
Insightec Raises $150M in Equity Financing – June 2024
Insightec secured $150 million in an oversubscribed equity financing round led by Fidelity Management, Nexus Neurotech Ventures, and Ally Bridge Group. New investors Baillie Gifford, Catalio Capital, and Fayez Sarofim & Co. joined, alongside existing backers like York Global Finance. The funds will support the Exablate Prime platform, which uses MRI-guided focused ultrasound to treat essential tremor and Parkinson’s disease in patients unresponsive to medication.
Talkiatry Secures $130M in Series C Financing – Q2 2024
Talkiatry raised $130 million in Series C funding, led by Andreessen Horowitz, with Perceptive Advisors participating and Banc of California providing debt financing. The funds will support the expansion of Talkiatry’s value-based behavioral healthcare model, aimed at reducing costs and improving outcomes for patients and health systems. This brings Talkiatry’s total funding to $245 million, with previous investments from Left Lane Capital and blisce.
Neurology IPO Activity
In H1 2024, the neurology sector saw six IPOs evenly distributed between Q1 and Q2. The second quarter outperformed the first, raising $282 million compared to Q1’s $166 million, bringing the total to $448 million.
Top Neurology IPOs – Q2 2024
Rapport Therapeutics IPO – $156M – May 2024Â
Rapport Therapeutics, a biotech company focused on precision medicines for central nervous system (CNS) disorders, raised $156 million in its IPO by offering 8,000,000 shares at $17.00 each, with a 30-day option for underwriters to purchase an additional 1,200,000 shares. The funds will advance the development of its lead candidate, RAP-219, for treating focal epilepsy. Rapport’s research centers on receptor-associated proteins (RAPs), targeting next-generation treatments for CNS disorders.
Contineum Therapeutics IPO – $119M – March 2024
Contineum Therapeutics raised $108 million through its IPO, bringing its total cash reserves to $226 million, funding operations until 2027. The proceeds will support clinical programs, including PIPE-791, a brain-penetrant LPA1R antagonist for idiopathic pulmonary fibrosis (IPF) and progressive multiple sclerosis (MS), and PIPE-307 for depression and RRMS. Following favorable Phase 1 trial results for PIPE-791, a Phase 1b trial is planned for Q4 2024 to guide dose selection for future Phase 2 trials.
KindlyMD IPO – $7M – April 2024
KindlyMD raised $7 million in its IPO via WallachBeth Capital, offering 1,240,910 units at $5.50 each. Each unit comprises one share of common stock, one tradeable warrant, and one non-tradeable warrant. Shares and tradeable warrants are now listed on Nasdaq under ‘KDLY’ and ‘KDLYW.’ The IPO includes a 45-day option for underwriters to purchase up to 186,136 additional shares and warrants. KindlyMD integrates primary care, pain management, behavioral therapies, and alternative treatments, including medical cannabis, in its patient care approach.
Also check out our research on R&D Partnerships, M&A, and Ventures – Neurology by Technology – Q1 2024 Review
