Tezspire Triumphs in Treating Chronic Rhinosinusitis; Gilead Adjusts Trodelvy Valuation Downward

Here’s a quick summary of recent developments from AstraZeneca, Amgen, and Jazz Pharmaceuticals, along with updates from Geron, Gilead Sciences, and Avid Bioservices that you might have missed.

AstraZeneca and Amgen reported that their drug Tezspire significantly alleviated nasal congestion and reduced the size of nasal polyps compared to placebo during a Phase 3 trial in patients suffering from a specific type of chronic rhinosinusitis. The announcement was made on Friday. The outcomes are expected to be shared at an upcoming medical conference and could enhance the drug’s approval status, as Tezspire is presently authorized for asthma treatment in the U.S. and over 60 countries. Additionally, Tezspire may face competition from depemokimab, a GSK medication that has shown positive results in two recent Phase 3 trials for the same ailment. — Ned Pagliarulo

Jazz Pharmaceuticals is set to commence an early-phase study next year to assess an innovative narcolepsy treatment. The proposed drug, named JZP441, was previously evaluated in a separate Phase 1 trial but the company halted the trial due to concerns regarding visual disturbances and cardiovascular impacts. The drug is engineered to act on “orexins,” proteins crucial for key brain functions such as alertness, arousal, appetite, and emotional state. During an earnings call on Wednesday, Robert Iannone, Jazz’s head of R&D, indicated that the new research will be instrumental in guiding future development decisions for JZP441 and also inform backup approaches. — Jacob Bell

Geron has successfully obtained 0 million in financing, potentially reaching 5 million, via partnerships with Royalty Pharma and Pharmakon Advisors. In their first agreement, Geron sold tiered royalty rights concerning U.S. net sales of Rytelo, an authorized drug for anemia in myelofibrosis patients, securing 5 million in return. Furthermore, they have arranged a 5-year senior secured term loan up to 0 million from Pharmakon-related funds, having already utilized half of this for repaying prior debts to Hercules Capital and Silicon Valley Bank. The remaining funds will assist in launching Rytelo and conducting further clinical evaluations. — Ned Pagliarulo

A joint venture has emerged between venture firm Aditum Bio and Leads Biolabs, focused on developing a “tri-specific” T cell engager for autoimmune conditions. The new entity, named Oblenio Bio, will initiate with an exclusive option to globally develop the treatment, involving a payment of million in upfront and imminent fees to Leads. They will also secure an equity stake in Oblenio, marking the 13th spinoff from Aditum. — Ned Pagliarulo

Gilead Sciences has decided to discontinue the development of its antibody-drug conjugate Trodelvy for second-line non-small cell lung cancer. CEO Daniel O’Day informed investors during an earnings call on Wednesday that this choice followed discussions with regulatory bodies in light of unfavorable results from a study earlier this year. Consequently, Gilead will incur a .8 billion write-down in the valuation of its ongoing R&D projects. Nevertheless, the company continues to pursue Trodelvy for specific breast cancer types and first-line lung cancer. — Ned Pagliarulo

Avid Bioservices is set to be acquired by GHO Capital Partners and Ampersand Capital Partners in a transaction valued at approximately .1 billion. Under the deal, the investors will pay .50 per Avid share, representing nearly a 14% premium over the stock’s closing price from Wednesday. This acquisition came shortly after Ampersand’s million cash purchase of a Nektar Therapeutics production facility, continuing a trend of contract development and manufacturing firms being transitioned into private ownership in recent years. — Ned Pagliarulo