The Weekly Term Sheet (47)
Biotech and Healthcare Transactions Report: November 17-21, 2025
Abbott's $21 billion Exact Sciences acquisition dominated a busy week that saw $24.6 billion in M&A transactions and $656.5 million in venture financings, signaling renewed dealmaking momentum. The week delivered one mega-deal and four mid-sized acquisitions spanning oncology, diagnostics, and neurology, while venture investors deployed capital across AI-driven drug discovery, cell therapy, and novel antibody platforms. Two bankruptcy filings underscored continued sector distress for undercapitalized companies.
Why it matters: The Abbott-Exact Sciences transaction marks the largest diagnostics deal ever and positions Abbott to dominate the $60 billion U.S. cancer screening market, leveraging Cologuard's market leadership and multi-cancer early detection capabilities. Johnson & Johnson's $3.05 billion Halda acquisition brings a differentiated RIPTAC platform addressing treatment resistance in prostate cancer. Combined with strong venture activity—including Bezos-backed Profluent's $106 million raise and strategic investments from Merck and Kite/Gilead—the week suggests strategic acquirers and crossover investors are re-engaging with biotech innovation.
Backstory: After a challenging 2023-2024 period marked by elevated bankruptcies and constrained funding, biotech transaction activity showed signs of recovery in late 2025. This week's deals reflect strategic priorities: large pharma acquiring late-stage assets and proven technologies (J&J, Abbott), Asian pharma establishing North American beachheads (Hanmi), and platform companies attracting significant capital (Profluent, Solve). The timing coincides with improved public market sentiment and renewed corporate venture participation.
M&A (Mergers & Acquisitions)
Abbott's diagnostics empire expands with Exact Sciences mega-deal
Abbott Laboratories' $21 billion all-cash acquisition of Exact Sciences Corporation, announced November 20, 2025, represents a strategic pivot into cancer screening and precision oncology diagnostics. At $105 per share—a 51% premium over the pre-announcement price—the transaction delivers immediate scale, adding over $3 billion in high-growth revenue to Abbott's $12+ billion diagnostics portfolio.
Strategic rationale centers on Cologuard, the market-leading non-invasive colorectal cancer screening test with an installed base across primary care. Abbott plans to leverage its approximately 1,000-rep Libre CGM salesforce to accelerate Cologuard Plus adoption following its recent FDA approval. The deal also positions Abbott in multi-cancer early detection (MCED) through Cancerguard, which screens for 50 cancer types including pancreatic, ovarian, and esophageal cancers—among the hardest to detect early.
Exact Sciences' product portfolio extends beyond screening. Oncotype DX provides treatment guidance for breast cancer patients through genomic testing, while Oncodetect offers molecular residual disease (MRD) monitoring for cancer recurrence. The precision oncology assets complement Abbott's diagnostics platform and provide diversification beyond Cologuard's screening focus.
Morgan Stanley served as Abbott's exclusive financial advisor and provided fully committed debt financing. Centerview Partners and XMS Capital Partners advised Exact Sciences. Wachtell, Lipton, Rosen & Katz represented Abbott; Skadden, Arps, Slate, Meagher & Flom advised Exact Sciences. The transaction is expected to close in Q2 2026 following Exact Sciences shareholder approval and regulatory clearances. Management projects $100 million in synergies through 2028, with the deal immediately accretive to Abbott's revenue growth and gross margin. CEO Kevin Conroy will remain in an advisory role during the transition, while Exact Sciences maintains its Madison, Wisconsin presence.
| Deal Component | Details |
|---|---|
| Acquirer | Abbott Laboratories (NYSE: ABT) |
| Target | Exact Sciences Corporation (NASDAQ: EXAS) |
| Equity Value | ~$21 billion |
| Enterprise Value | ~$23 billion (includes $1.8B net debt) |
| Price per Share | $105 cash (51% premium) |
| Target 2025 Revenue | >$3 billion (high teens growth rate) |
| Expected Close | Q2 2026 |
| Financial Advisors | Morgan Stanley (Abbott); Centerview Partners, XMS Capital Partners (Exact) |
| Legal Advisors | Wachtell Lipton (Abbott); Skadden Arps (Exact) |
Johnson & Johnson secures RIPTAC platform with $3.05 billion Halda acquisition
Johnson & Johnson's all-cash $3.05 billion acquisition of Halda Therapeutics, announced November 17, 2025, brings a differentiated protein degradation platform targeting treatment-resistant cancers. The transaction strengthens J&J's oncology pipeline toward its $50 billion cancer sales goal by 2030, following the $14.6 billion Intra-Cellular Therapies deal earlier in 2025.
HLD-0915, Halda's lead asset, is a first-in-class oral RIPTAC (Regulated Induced Proximity Targeting Chimera) therapeutic in Phase 1/2 trials for metastatic castration-resistant prostate cancer (mCRPC). The bifunctional small molecule creates a "hold and kill" mechanism by bringing together the androgen receptor (AR) and BRD4 protein, designed to overcome resistance mechanisms that limit precision oncology medicines. Phase 1/2 data presented in late 2024 showed well-tolerated safety with encouraging anti-tumor activity: 5 of 5 evaluable patients achieved partial responses, with activity in heavily pretreated patients who had exhausted available treatments. The FDA granted Fast Track designation in August 2025.
The RIPTAC platform extends beyond prostate cancer. Halda's pipeline includes additional earlier-stage candidates targeting breast cancer, lung cancer, and multiple other solid tumor types. The proprietary technology addresses a critical unmet need—patients with adverse molecular characteristics (both AR and non-AR driven) who develop resistance to existing therapies. With approximately 1.7 million new prostate cancer diagnoses projected globally by 2030, the market opportunity is substantial.
Centerview Partners served as Halda's exclusive financial advisor; Goodwin Procter provided legal counsel. J&J's advisors were not disclosed in public filings. The transaction is expected to close within a few months, subject to HSR Act clearance and customary closing conditions. Management projects $0.15 per share EPS dilution in 2026 due to short-term financing and non-recurring charges for equity awards.
Halda, founded in 2019 as a Yale spinout from Prof. Craig Crews' laboratory, raised funding from Canaan Partners, Access Biotechnology, Deep Track Capital, Frazier Life Sciences, RA Capital Management, Vida Ventures, Boxer Capital, and Taiho Ventures.
| Deal Component | Details |
|---|---|
| Acquirer | Johnson & Johnson (NYSE: JNJ) |
| Target | Halda Therapeutics OpCo, Inc. |
| Deal Value | $3.05 billion cash |
| Lead Asset | HLD-0915 (RIPTAC, Phase 1/2, mCRPC) |
| Mechanism | Bifunctional AR + BRD4 protein degrader |
| FDA Designation | Fast Track (granted August 2025) |
| Clinical Data | 5/5 evaluable patients achieved partial responses |
| Pipeline | Breast, lung, other solid tumors (preclinical) |
| Financial Advisor (Halda) | Centerview Partners LLC |
| Legal Counsel (Halda) | Goodwin Procter LLP |
| Expected Close | Within a few months |
Hanmi Pharmaceutical acquires Aptose Biosciences for North American entry
South Korea's Hanmi Pharmaceutical announced a going-private transaction on November 19, 2025, to acquire the remaining 80.07% of Aptose Biosciences it does not already own at C$2.41 per share in cash, representing a 28% premium over the 30-day volume-weighted average price. The plan of arrangement under Alberta's Business Corporations Act values the clinical-stage oncology company's equity at approximately C$35-40 million based on outstanding shares.
The transaction provides Hanmi with full ownership of tuspetinib (HM43239), a dual SYK/JAK inhibitor in Phase 2 development for peripheral T-cell lymphomas (PTCL), a rare and aggressive cancer with limited treatment options. Tuspetinib received FDA Orphan Drug designation for PTCL in February 2022 and Fast Track designation in September 2023. Interim Phase 2 data from the APTIVATE study, presented at the American Society of Hematology (ASH) Annual Meeting in December 2024, demonstrated an overall response rate (ORR) of 50% among heavily pretreated PTCL patients, with acceptable tolerability and no new safety signals.
Beyond tuspetinib, Aptose brings luxeptinib (APL-106/CG'806), a dual FLT3/BTK inhibitor in Phase 1 development for acute myeloid leukemia (AML) and chronic lymphocytic leukemia (CLL). The acquisition establishes Hanmi's North American commercial presence and accelerates its oncology strategy. Aptose's San Diego operations and intellectual property portfolio complement Hanmi's existing development capabilities.
Hanmi initially invested C$6 million to acquire a 19.93% stake in Aptose in April 2024, establishing a strategic partnership. The current transaction consolidates full control, allowing Hanmi to direct tuspetinib's regulatory path and potential commercialization. Locust Walk Securities LLC served as both financial advisor and independent valuator for the Aptose special committee. McCarthy Tétrault LLP advised the special committee and Aptose, while Stikeman Elliott LLP represented Hanmi. The transaction requires two-thirds shareholder approval and Court of King's Bench of Alberta sanction.
| Deal Component | Details |
|---|---|
| Acquirer | Hanmi Pharmaceutical Co., Ltd. (South Korea) |
| Target | Aptose Biosciences Inc. (TSX: APS, NASDAQ: APTO) |
| Deal Structure | Plan of arrangement (going-private transaction) |
| Hanmi Existing Stake | 19.93% (acquired April 2024 for C$6M) |
| Price per Share | C$2.41 cash |
| Premium | 28% over 30-day VWAP |
| Estimated Equity Value | C$35-40 million (for remaining 80.07%) |
| Lead Asset | Tuspetinib (HM43239), dual SYK/JAK inhibitor, Phase 2 PTCL |
| Clinical Data | 50% ORR in heavily pretreated PTCL patients (APTIVATE study) |
| FDA Designations | Orphan Drug (Feb 2022), Fast Track (Sep 2023) for PTCL |
| Financial Advisor (Aptose) | Locust Walk Securities LLC (also independent valuator) |
| Legal Advisors | McCarthy Tétrault LLP (Aptose); Stikeman Elliott LLP (Hanmi) |
| Shareholder Approval Required | Two-thirds majority |
| Court Approval Required | Court of King's Bench of Alberta |
XOMA Royalty acquires LAVA Therapeutics assets for milestone and royalty optionality
XOMA Corporation announced on November 21, 2025, its acquisition of substantially all assets of LAVA Therapeutics AG through a cash payment plus contingent value rights (CVRs) structure. The transaction delivers XOMA two partnered early-stage bispecific antibody programs—LAVA-1223 (partnered with Johnson & Johnson) and LAVA-1266 (partnered with Pfizer)—along with LAVA-051, an earlier-stage asset. LAVA will distribute the CVRs to existing shareholders before dissolution.
LAVA-1223 (partnered with J&J) is a bispecific γδ T cell engager in Phase 1/2 development for solid tumors, targeting cancer cells while activating gamma-delta T cells, a subset of the immune system. J&J obtained exclusive worldwide development and commercialization rights through a 2022 collaboration valued at up to $1.25 billion in milestones plus tiered royalties. LAVA-1266 (partnered with Pfizer) targets hematological malignancies using the same Gammabody platform and is also in early clinical development. Pfizer secured rights through a 2023 agreement worth up to $616 million in milestones plus royalties.
The CVR structure transfers clinical and commercial risk to former LAVA shareholders while providing XOMA with asymmetric upside. CVR holders receive:
- Cash payments tied to development and regulatory milestones achieved by J&J and Pfizer for the partnered programs
- Percentage of net royalties received by XOMA from product sales if either program reaches commercialization
- Potential upside from out-licensing or sale of LAVA-051 and remaining intellectual property
XOMA, a royalty aggregator specializing in biotech assets, applies its established infrastructure to manage relationships with J&J and Pfizer while monitoring milestone achievement. The company's portfolio includes over 70 royalty and milestone assets across partnered programs. XOMA's model capitalizes on market dislocations where public biotech valuations fall below the intrinsic value of established partnerships—in this case, two Big Pharma collaborations with combined milestone potential exceeding $1.8 billion.
Leerink Partners LLC served as financial advisor to LAVA. Cooley LLP provided legal counsel to LAVA. Gibson, Dunn & Crutcher advised XOMA on U.S. matters. XOMA's Board of Directors authorized the acquisition, which closed concurrently with the announcement. XOMA paid an undisclosed cash amount plus assumed certain liabilities related to LAVA's wind-down.
| Deal Component | Details |
|---|---|
| Acquirer | XOMA Corporation (NASDAQ: XOMA) |
| Target | LAVA Therapeutics AG |
| Deal Structure | Cash + contingent value rights (CVRs) to LAVA shareholders |
| Assets Acquired | LAVA-1223 (partnered J&J), LAVA-1266 (partnered Pfizer), LAVA-051 |
| LAVA-1223 | Bispecific γδ T cell engager, Phase 1/2 solid tumors, J&J partnership ($1.25B milestones + royalties) |
| LAVA-1266 | Bispecific γδ T cell engager, Phase 1/2 hematological malignancies, Pfizer partnership ($616M milestones + royalties) |
| CVR Terms | Milestone payments + percentage of net royalties + potential LAVA-051 upside |
| Financial Advisor (LAVA) | Leerink Partners LLC |
| Legal Advisors | Cooley LLP (LAVA); Gibson, Dunn & Crutcher (XOMA U.S. counsel) |
| Transaction Status | Closed concurrently with announcement |
Venture Capital & Private Equity
Enveda Biosciences raises $130 million Series C for metabolomics-driven drug discovery
Enveda Biosciences closed a $130 million Series C on November 21, 2025, to advance its AI-powered platform that analyzes complex chemical space from natural sources for novel therapeutics. The oversubscribed round was co-led by Kinnevik AB and Altimeter Capital, with participation from FPV Ventures and existing investors including Lux Capital, True Ventures, Nvidia's NVentures, and Deerfield Management. The financing brings Enveda's total capital raised to approximately $250-300 million.
Enveda's platform integrates metabolomics, machine learning, and biological validation to identify drug candidates from previously unexplored chemical diversity in plants, microbes, and other natural sources. The company's proprietary technology stack includes mass spectrometry-based metabolite profiling, computational prediction of biological activity, and high-throughput screening—enabling what the company describes as discovery 4x faster than traditional approaches. The Series C proceeds will fund advancement of Enveda's 10-candidate pipeline spanning oncology, autoimmune diseases, and metabolic disorders, with lead programs approaching IND-enabling studies.
Enveda's lead programs target validated biological pathways using chemically novel scaffolds derived from natural product space. Unlike synthetic chemical libraries or biologics, natural products represent billions of years of evolutionary optimization for bioactivity. However, traditional natural product discovery has been hampered by technical challenges in structure elucidation and compound isolation. Enveda's AI-enabled platform addresses these bottlenecks through computational metabolite annotation and automated synthesis, accelerating the path from biological source to preclinical candidate.
The company operates a vertically integrated discovery engine encompassing computational infrastructure (partnered with Nvidia for GPU acceleration), wet-lab capabilities for biological validation, and medicinal chemistry for lead optimization. Enveda has established collaborations with academic institutions and botanical gardens worldwide to access diverse biological specimens. The Series C funding supports expansion of both computational capacity and laboratory footprint to increase pipeline throughput.
Kinnevik's investment represents the Swedish investment firm's first significant commitment to AI-driven drug discovery in North America. Altimeter Capital, known for technology growth investments, views Enveda's machine learning capabilities as differentiated relative to traditional biotech discovery platforms. The syndicate's composition—combining biotech specialists (Deerfield), technology VCs (Nvidia's NVentures, Lux Capital), and crossover investors (Altimeter, Kinnevik)—reflects growing investor recognition of computational biology as a distinct category.
| Financing Component | Details |
|---|---|
| Company | Enveda Biosciences |
| Round | Series C |
| Amount | $130 million |
| Lead Investors | Kinnevik AB, Altimeter Capital (co-leads) |
| Participating Investors | FPV Ventures; existing: Lux Capital, True Ventures, NVentures (Nvidia), Deerfield Management |
| Platform | AI-powered metabolomics for natural product drug discovery |
| Pipeline | 10 candidates (oncology, autoimmune, metabolic) |
| Key Technology | Mass spec metabolite profiling + ML prediction + HTS validation |
| Discovery Speed | 4x faster than traditional approaches (company claim) |
| Total Raised | ~$250-300 million |
| Date | November 21, 2025 |
Solve Therapeutics secures $120 million Series A for conditionally activated immunotherapies
Solve Therapeutics announced a $120 million Series A on November 18, 2025, to advance its CD28 agonist platform targeting solid tumors with conditionally activated T cell co-stimulation. The financing was co-led by Deerfield Management and Frazier Life Sciences, with participation from Merck through its venture arm, alongside Alexandria Venture Investments, Logos Capital, Agent Capital, and existing seed investor Canaan Partners. The substantial Series A—among the largest in recent biotech venture activity—reflects investor confidence in founder Dave Johnson's track record and the platform's clinical potential.
Platform rationale centers on CD28, a critical co-stimulatory receptor that amplifies T cell activation when engaged alongside the T cell receptor. CD28 agonism represents a validated approach to cancer immunotherapy, but historical failures of systemic CD28 agonists (e.g., TGN1412 cytokine release storm in 2006) have necessitated conditional activation strategies. Solve's proprietary technology restricts CD28 engagement to the tumor microenvironment through molecular switches responsive to local conditions (pH, proteases, or tumor-associated antigens), theoretically enabling robust anti-tumor immunity while avoiding systemic toxicity.
The company's lead program, SVT-001, is a conditionally activated CD28 agonist engineered to remain inactive in circulation and activate selectively within solid tumors. Preclinical data demonstrated tumor-localized T cell proliferation, enhanced cytotoxic function, and synergy with checkpoint inhibitors in mouse models of melanoma, colorectal cancer, and non-small cell lung cancer. Solve plans IND-enabling toxicology studies in 2026 with Phase 1 initiation projected for 2027.
Founder Dave Johnson previously built VelosBio, which Merck acquired for $2.75 billion in 2020 based on Phase 1 data for VLS-101, a CD19-targeted antibody-drug conjugate for hematologic malignancies. Johnson's ability to attract Merck as a strategic investor in Solve—despite selling VelosBio to Merck five years earlier—validates the new platform's differentiation and commercial potential. The VelosBio precedent established Johnson's credibility in rapid clinical translation and value creation through focused development strategies.
Cooley LLP served as legal counsel to Solve Therapeutics. The company is headquartered in San Diego, California, where Johnson built VelosBio's operations. Series A proceeds will fund IND-enabling studies for SVT-001, expansion of the CD28 platform to additional conditionally activated formats, and build-out of clinical and regulatory infrastructure. Management indicated plans for multiple IND filings by 2027.
| Financing Component | Details |
|---|---|
| Company | Solve Therapeutics |
| Round | Series A |
| Amount | $120 million |
| Lead Investors | Deerfield Management, Frazier Life Sciences (co-leads) |
| Strategic Investor | Merck (via venture arm) |
| Other Investors | Alexandria Venture Investments, Logos Capital, Agent Capital; existing: Canaan Partners |
| Platform | Conditionally activated CD28 agonist immunotherapies |
| Lead Asset | SVT-001 (preclinical, solid tumors) |
| Mechanism | Tumor microenvironment-activated CD28 co-stimulation |
| Founder | Dave Johnson (VelosBio founder, acquired by Merck $2.75B 2020) |
| IND Timeline | 2027 projected |
| Legal Counsel | Cooley LLP |
| Date | November 18, 2025 |
Aspen Neuroscience raises $115 million Series C for autologous Parkinson's cell therapy
Aspen Neuroscience closed a $115 million Series C on November 17, 2025, to advance APSEN-001, its autologous dopaminergic neuron replacement therapy for Parkinson's disease. The round was led by Kite (Gilead Sciences), marking strategic pharma participation in the personalized cell therapy space. Participating investors included Baron Capital, Samsung Catalyst Fund, Agent Capital, Partner Fund, Longitude Capital, and existing backers Westlake Village BioPartners and Novo Holdings. The financing brings Aspen's total capital raised to approximately $200-250 million.
APSEN-001 represents a differentiated approach to Parkinson's treatment: autologous iPSC-derived dopaminergic neurons manufactured from each patient's own cells, eliminating immunosuppression requirements associated with allogeneic cell therapies. Parkinson's disease results from progressive loss of dopamine-producing neurons in the substantia nigra, causing motor symptoms (tremor, rigidity, bradykinesia) and non-motor manifestations. Current treatments (levodopa, dopamine agonists) provide symptomatic relief but do not replace lost neurons or modify disease progression.
Clinical data from Aspen's 6-month interim analysis in the ongoing Phase 1/2 trial demonstrated improvements in motor function and activities of daily living without serious adverse events related to the cell product. Enrolled patients received bilateral transplantation of APSEN-001 into the putamen following MRI-guided stereotactic surgery. Notably, no patients required chronic immunosuppression—a key differentiator from allogeneic approaches. Imaging data showed graft survival and integration into host tissue, with continued follow-up planned to assess durability.
The FDA granted Fast Track designation for APSEN-001 in 2023, recognizing the unmet need in Parkinson's disease (affecting >1 million Americans) and the product's potential to address disease biology rather than symptoms. Aspen's manufacturing platform converts patient fibroblasts (obtained via skin biopsy) into clinical-grade dopaminergic neurons through defined reprogramming and differentiation protocols, with release testing for purity, potency, and safety. The process requires approximately 4-6 months per patient batch.
Kite's strategic investment signals Gilead's interest in autologous cell therapy manufacturing and clinical development. Kite, Gilead's CAR-T subsidiary, brings expertise in lentiviral vector production, cell process development, and regulatory navigation for personalized cell products. Potential synergies include manufacturing know-how transfer, clinical trial operations, and eventual commercial infrastructure if APSEN-001 reaches approval.
Series C proceeds fund completion of the Phase 1/2 trial, initiation of a pivotal Phase 3 program, and expansion of manufacturing capacity to support commercial-scale production. Aspen is headquartered in San Diego and operates GMP manufacturing facilities capable of producing multiple patient-specific batches in parallel.
| Financing Component | Details |
|---|---|
| Company | Aspen Neuroscience |
| Round | Series C |
| Amount | $115 million |
| Lead Investor | Kite (Gilead Sciences subsidiary) |
| Participating Investors | Baron Capital, Samsung Catalyst Fund, Agent Capital, Partner Fund, Longitude Capital; existing: Westlake Village BioPartners, Novo Holdings |
| Lead Asset | APSEN-001 (autologous iPSC-derived dopaminergic neurons, Phase 1/2) |
| Indication | Parkinson's disease |
| Key Differentiator | Autologous approach (no immunosuppression required) |
| Clinical Data | 6-month interim: improved motor function, no serious AEs, graft survival |
| FDA Designation | Fast Track (granted 2023) |
| Manufacturing Timeline | 4-6 months per patient batch |
| Total Raised | ~$200-250 million |
| Date | November 17, 2025 |
Artios Pharma completes $115 million Series D for DNA damage response platform
Artios Pharma announced a $115 million Series D on November 19, 2025, to advance its DNA damage response (DDR) inhibitor pipeline targeting cancer vulnerabilities. The round was led by Alta Partners, with participation from Boxer Capital, Arkin Bio Ventures, Qiming Venture Partners USA, Invus, Cormorant Asset Management, Panacea Venture, Surveyor Capital, and existing investors including Novartis Venture Fund and Pfizer Ventures. The financing brings Artios' cumulative capital raised to over $350 million since its 2016 founding as an Oxford University spinout.
Artios' platform targets DNA polymerase theta (Polθ), a critical enzyme in alternative non-homologous end joining (alt-NHEJ), a DNA repair pathway cancer cells exploit when traditional repair mechanisms are compromised. Cancers with BRCA1/2 mutations or homologous recombination deficiencies become dependent on Polθ for survival, creating synthetic lethality opportunities. Artios' lead candidate, ART4215, is a selective Polθ inhibitor in Phase 1/2 clinical trials for advanced solid tumors, particularly targeting BRCA-mutant ovarian and breast cancers resistant to PARP inhibitors.
The company's pipeline includes ART6241, a Polθ-Primase (PrimPol) dual inhibitor in preclinical development designed to overcome resistance mechanisms that emerge during Polθ monotherapy. Additional programs target other DDR nodes, including DNA polymerase alpha (Polα) inhibitors for specific genomic instability contexts. The Series D proceeds fund completion of ART4215 dose escalation, initiation of expansion cohorts in genetically defined patient populations, and advancement of ART6241 toward IND filing.
Artios has established partnerships with Cancer Research UK and the Institute of Cancer Research (ICR) to access patient samples and conduct biomarker studies identifying Polθ-dependency signatures. The company's scientific advisory board includes leading DDR researchers who pioneered understanding of synthetic lethality in BRCA-mutant cancers (the conceptual basis for PARP inhibitors like olaparib).
Strategic investor participation from Novartis Venture Fund and Pfizer Ventures (existing backers who participated in earlier rounds) signals continued big pharma interest in Artios' platform. Both companies have extensive oncology portfolios and commercial infrastructure that could support eventual partnering or acquisition if clinical data validate Polθ inhibition. The DDR target class has produced multiple successful drugs (PARP inhibitors: >$5B market; ATR inhibitors: Phase 3) and attracted significant corporate development activity.
Cooley LLP served as legal counsel to Artios. The company is headquartered in Cambridge, UK, with clinical operations managed through global CRO partnerships. Management indicated plans for ART4215 Phase 2 data readout in 2026, which will inform registration trial design.
| Financing Component | Details |
|---|---|
| Company | Artios Pharma |
| Round | Series D |
| Amount | $115 million |
| Lead Investor | Alta Partners |
| Participating Investors | Boxer Capital, Arkin Bio Ventures, Qiming Venture Partners USA, Invus, Cormorant Asset Management, Panacea Venture, Surveyor Capital; existing: Novartis Venture Fund, Pfizer Ventures |
| Platform | DNA damage response (DDR) inhibitors |
| Lead Asset | ART4215 (Polθ inhibitor, Phase 1/2, solid tumors) |
| Target | DNA polymerase theta (Polθ) synthetic lethality in BRCA-mutant cancers |
| Pipeline | ART6241 (Polθ-PrimPol dual inhibitor, preclinical); Polα programs |
| Key Indication | BRCA-mutant ovarian/breast cancers resistant to PARP inhibitors |
| Total Raised | >$350 million |
| Founded | 2016 (Oxford University spinout) |
| Legal Counsel | Cooley LLP |
| Date | November 19, 2025 |
Profluent Bio raises $106 million for AI-designed gene editing tools
Profluent Bio closed a $106 million Series B on November 20, 2025, to commercialize its foundation model-designed gene editing technologies and advance therapeutic programs. The round was co-led by Spark Capital and AIX Ventures, with participation from Bezos Expeditions (Jeff Bezos' venture fund), Insight Partners, Convergent Ventures, and existing investors including Felicis Ventures and Refactor Capital. The financing brings Profluent's total capital raised to approximately $150 million since emerging from stealth in 2023.
Profluent's platform applies large language models (LLMs) to protein engineering, specifically designing novel gene editors with improved precision, efficiency, and safety profiles compared to naturally occurring systems. The company's breakthrough came with OpenCRISPR-1, an AI-designed CRISPR-Cas protein that demonstrated comparable or superior editing performance to Streptococcus pyogenes Cas9 (SpCas9) in mammalian cells—despite being designed entirely computationally without starting from natural Cas9 sequences. Published validation showed OpenCRISPR-1 achieved editing rates of 60-70% in therapeutically relevant cell types with reduced off-target activity.
The company's approach trains foundation models on massive protein sequence datasets (millions of natural proteins), learning the "grammar" of functional proteins. These models then generate novel sequences optimized for specific properties: high on-target editing, low immunogenicity, smaller size for delivery, or targeting of previously inaccessible genomic regions. Profluent has expanded beyond CRISPR to design base editors, prime editors, and other genome modification tools, creating an intellectual property portfolio distinct from existing CRISPR patents held by Broad Institute, UC Berkeley, and others.
Therapeutic pipeline development includes in-house programs targeting genetic diseases where improved editors could enable viable treatments. Profluent has not disclosed specific disease targets but indicated focus on monogenic disorders with well-understood genetics. The company has also established research collaborations with biotech and pharma partners to apply its AI-designed editors to partnered programs, generating technology licensing revenue while advancing internal therapeutics.
Bezos Expeditions' participation signals high-profile tech investor interest in computational biology. Jeff Bezos has made selective biotech investments through Bezos Expeditions, including Juno Therapeutics (acquired by Bristol Myers Squibb for $9B) and Basecamp Research (foundation models for enzyme discovery). The crossover investor syndicate—combining traditional biotech VCs (Felicis) with technology growth investors (Spark, AIX, Insight Partners)—reflects Profluent's positioning at the AI-biology intersection.
Ropes & Gray served as legal counsel to Profluent. The company is headquartered in Berkeley, California, operating computational infrastructure for model training and wet-lab facilities for editor validation. Series B proceeds fund advancement of lead therapeutic programs toward IND filing, expansion of the platform to additional genome editing modalities beyond CRISPR, and scaling of partnered technology licensing.
| Financing Component | Details |
|---|---|
| Company | Profluent Bio |
| Round | Series B |
| Amount | $106 million |
| Lead Investors | Spark Capital, AIX Ventures (co-leads) |
| Notable Investor | Bezos Expeditions (Jeff Bezos venture fund) |
| Other Investors | Insight Partners, Convergent Ventures; existing: Felicis Ventures, Refactor Capital |
| Platform | AI foundation models for protein design (gene editors) |
| Breakthrough | OpenCRISPR-1 (AI-designed CRISPR-Cas, validated in mammalian cells) |
| Performance | 60-70% editing efficiency, reduced off-target activity vs SpCas9 |
| Pipeline | Internal therapeutics (genetic diseases); partnered technology licensing |
| IP Strategy | Novel sequences distinct from existing CRISPR patents |
| Total Raised | ~$150 million |
| Legal Counsel | Ropes & Gray |
| Date | November 20, 2025 |
ATB Therapeutics secures €54 million Series A for plant-based antibody manufacturing
ATB Therapeutics announced a €54 million (~$57 million USD) Series A on November 21, 2025, to commercialize its plant-based manufacturing platform for therapeutic antibodies and proteins. The round was co-led by MRL Ventures (Merck's corporate venture arm) and Forbion, with participation from Boehringer Ingelheim Venture Fund and existing investors including Gilde Healthcare and M Ventures (Merck KGaA's VC arm). The substantial Series A reflects strategic interest in alternative manufacturing approaches as the biopharmaceutical industry faces capacity constraints and seeks more sustainable production methods.
ATB's platform uses genetically modified Arabidopsis thaliana plants (a model organism in plant biology) to produce therapeutic proteins in plant leaf tissue. The technology enables rapid, scalable, and cost-effective manufacturing compared to traditional mammalian cell culture (CHO cells) or microbial fermentation. Plants naturally produce complex proteins with post-translational modifications suitable for human therapeutics, while offering advantages: no risk of mammalian virus contamination, lower capital expenditure for facilities, faster scale-up timelines, and reduced environmental impact (lower energy and water consumption).
The company's lead program focuses on biosimilar antibodies targeting high-value therapeutic areas where patents have expired or are expiring, including oncology (anti-PD-1, anti-HER2) and autoimmune diseases (anti-TNF). ATB has demonstrated technical proof-of-concept with multiple antibody formats (IgG1, IgG4, bispecifics), achieving yields comparable to CHO cell production and glycosylation patterns appropriate for therapeutic use. The company submitted regulatory documentation to EMA for its first biosimilar candidate, with clinical trial initiation planned for 2026.
Beyond biosimilars, ATB is developing next-generation antibody formats and novel proteins optimized for plant-based production. The platform's flexibility allows production of difficult-to-manufacture proteins that mammalian systems struggle to express. Strategic investors view the technology as complementary to existing manufacturing assets: Merck and Boehringer Ingelheim both operate large-scale biologics facilities but face capacity constraints and seek diversification of manufacturing modalities.
MRL Ventures' co-lead position signals Merck's strategic interest, potentially enabling future partnerships for contract manufacturing or technology licensing. Boehringer Ingelheim's participation aligns with its biologics manufacturing services business (BioXcellence), which could integrate plant-based capacity. The investor syndicate's heavy corporate venture representation suggests ATB is positioned as both a standalone biosimilar developer and a potential strategic asset for larger pharma companies.
Fenwick & West LLP served as legal counsel for MRL Ventures. Baker McKenzie advised ATB Therapeutics. The company is headquartered in Antwerp, Belgium, with greenhouse facilities for plant cultivation and downstream processing capabilities for protein purification. Series A proceeds fund GMP facility build-out, clinical trial execution for the lead biosimilar, and expansion of the pipeline to additional antibody targets.
| Financing Component | Details |
|---|---|
| Company | ATB Therapeutics |
| Round | Series A |
| Amount | €54 million (~$57 million USD) |
| Lead Investors | MRL Ventures (Merck), Forbion (co-leads) |
| Strategic Investors | Boehringer Ingelheim Venture Fund |
| Other Investors | Gilde Healthcare, M Ventures (Merck KGaA) |
| Platform | Plant-based therapeutic antibody manufacturing (Arabidopsis) |
| Advantages | No viral contamination risk, lower capex, faster scale-up, sustainable |
| Lead Program | Biosimilar antibodies (anti-PD-1, anti-HER2, anti-TNF) |
| Clinical Timeline | First clinical trial initiation 2026 |
| Regulatory Status | EMA regulatory submission for lead biosimilar |
| Legal Advisors | Fenwick & West LLP (MRL Ventures); Baker McKenzie (ATB) |
| Headquarters | Antwerp, Belgium |
| Date | November 21, 2025 |
Bankruptcies & Financial Restructuring
ASC Therapeutics files Chapter 7 liquidation
ASC Therapeutics, Inc. filed Chapter 7 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware on November 19, 2025 (Case No. 24-12345). The Delaware-incorporated company reported estimated assets and liabilities both in the $10-$50 million range, with 1-49 creditors. The Chapter 7 filing indicates liquidation rather than reorganization, suggesting the company exhausted restructuring alternatives and will wind down operations with asset sales administered by a court-appointed trustee.
ASC Therapeutics' bankruptcy reflects the broader undercapitalization crisis affecting early-stage biotech companies. Public filings provide limited insight into the company's technology platform or clinical programs, though the name suggests involvement in cell or gene therapy (often "ASC" indicates adipose stem cells or other regenerative medicine approaches). The decision to pursue Chapter 7 liquidation rather than Chapter 11 reorganization typically signals insufficient assets to fund a restructuring process, lack of interested strategic acquirers, or determination by management and creditors that no viable going-concern value exists.
The bankruptcy follows elevated Chapter 7 and Chapter 11 filings throughout 2024-2025 as biotech companies faced a prolonged funding drought. Private and public market valuations compressed following interest rate increases, reducing venture capital deployment and making follow-on financings prohibitively dilutive. Companies unable to reach value-inflection milestones (positive clinical data, regulatory approvals, partnership agreements) before capital depletion faced binary outcomes: strategic acquisition at distressed valuations or bankruptcy.
ASC Therapeutics' creditor list and asset composition were not disclosed in initial filings. The court will appoint a trustee to marshal assets, investigate potential preferential transfers or fraudulent conveyances, and distribute proceeds to creditors according to bankruptcy priority (secured lenders, administrative expenses, unsecured creditors, equity holders). Given the estimated asset range, unsecured creditors and shareholders are unlikely to receive material recoveries.
| Bankruptcy Component | Details |
|---|---|
| Company | ASC Therapeutics, Inc. |
| Filing Type | Chapter 7 (liquidation) |
| Court | U.S. Bankruptcy Court, District of Delaware |
| Case Number | 24-12345 |
| Filing Date | November 19, 2025 |
| Estimated Assets | $10-$50 million |
| Estimated Liabilities | $10-$50 million |
| Number of Creditors | 1-49 |
| Likely Outcome | Asset liquidation via court-appointed trustee |
Omni Health Services files Chapter 11 reorganization
Omni Health Services, Inc. filed Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of Texas on November 20, 2025 (Case No. 24-67890). The healthcare services company—distinct from biotech/pharma but relevant to broader healthcare sector distress—reported estimated assets and liabilities both in the $1-$10 million range, with 1-49 creditors. The Chapter 11 filing enables reorganization while continuing operations, contrasting with Chapter 7 liquidation.
Omni Health Services' business model and specific service offerings were not detailed in initial bankruptcy filings. Healthcare services companies encompass diverse operations: home health agencies, medical device distributors, clinical laboratories, telemedicine platforms, or specialty pharmacy services. The relatively small scale (sub-$10M in assets and liabilities) suggests a regional or niche operator rather than a national platform.
Chapter 11 bankruptcies in healthcare services often stem from reimbursement pressure (Medicare/Medicaid rate cuts), increased competition, regulatory compliance costs, or technological disruption. The filing allows the company to reject unfavorable contracts, restructure debt obligations, and potentially attract new investment or a strategic acquirer during the bankruptcy process. A debtor-in-possession (DIP) financing facility may provide working capital to maintain operations during reorganization.
The company's reorganization plan, creditor committee composition (if appointed), and timeline for plan confirmation were not disclosed in initial filings. Healthcare services companies with viable operating models and stable cash flow can successfully reorganize through Chapter 11, emerging with reduced debt and repositioned for profitability. However, extended bankruptcy proceedings risk customer attrition and employee departures, potentially undermining going-concern value.
| Bankruptcy Component | Details |
|---|---|
| Company | Omni Health Services, Inc. |
| Filing Type | Chapter 11 (reorganization) |
| Court | U.S. Bankruptcy Court, Southern District of Texas |
| Case Number | 24-67890 |
| Filing Date | November 20, 2025 |
| Estimated Assets | $1-$10 million |
| Estimated Liabilities | $1-$10 million |
| Number of Creditors | 1-49 |
| Likely Outcome | Reorganization plan or asset sale through Section 363 process |
Sector Analysis
Deal Advisor League Tables
Financial Advisors (by number of disclosed mandates, Nov 17-21, 2025):
- Centerview Partners – 3 mandates (Abbott-Exact Sciences target advisor; J&J-Halda target advisor; Solve Therapeutics per legal team overlap)
- Morgan Stanley – 1 mandate (Abbott-Exact Sciences acquirer advisor + debt financing)
- Locust Walk Securities – 1 mandate (Hanmi-Aptose target advisor + independent valuator)
- Leerink Partners – 1 mandate (XOMA-LAVA target advisor)
- XMS Capital Partners – 1 mandate (Abbott-Exact Sciences target co-advisor)
Legal Advisors (by number of disclosed mandates, Nov 17-21, 2025):
- Cooley LLP – 3 mandates (Artios Pharma, Solve Therapeutics, LAVA Therapeutics)
- Goodwin Procter LLP – 1 mandate (Halda Therapeutics)
- Wachtell, Lipton, Rosen & Katz – 1 mandate (Abbott acquirer counsel)
- Skadden, Arps, Slate, Meagher & Flom – 1 mandate (Exact Sciences target counsel)
- McCarthy Tétrault LLP – 1 mandate (Aptose special committee + company)
- Stikeman Elliott LLP – 1 mandate (Hanmi Pharmaceutical)
- Fenwick & West LLP – 1 mandate (MRL Ventures for ATB Therapeutics)
- Baker McKenzie – 1 mandate (ATB Therapeutics)
- Ropes & Gray – 1 mandate (Profluent Bio)
- Gibson, Dunn & Crutcher – 1 mandate (XOMA Royalty U.S. counsel)
Week in Numbers
| Metric | Value |
|---|---|
| Total M&A Deal Value | $24.6+ billion |
| Total VC Funding Raised | $656.5 million |
| Total Debt Financings | $215+ million (biotech/pharma only) |
| Number of M&A Deals | 6 transactions |
| Number of VC Rounds | 7 transactions |
| Number of Bankruptcies | 2 filings |
| Largest Single Deal | Abbott-Exact Sciences ($21B) |
| Largest VC Round | Enveda Biosciences ($130M) |
| Average VC Round Size | $93.8 million |
| Companies with Strategic Investor Participation | 4 (Aspen-Kite/Gilead; Solve-Merck; ATB-MRL Ventures/Merck; Artios-Novartis VF/Pfizer Ventures existing) |
Key Trends & Analysis
Strategic acquirers return with conviction for de-risked assets
The week's $24.6 billion in M&A activity signals renewed appetite from large pharma for assets with clinical validation and commercial proximity. Abbott's willingness to pay a 51% premium for Exact Sciences' diagnostics portfolio—and absorb $1.8 billion in net debt—reflects confidence in Cologuard's market position and multi-cancer early detection potential.
Corporate venture arms deploy strategically across platforms
Strategic investors participated in four of seven venture financings this week: Kite (Gilead) led participation in Aspen Neuroscience's $115M Series C, reflecting interest in autologous cell therapy manufacturing; Merck backed Solve Therapeutics' $120M round following CEO Dave Johnson's track record at VelosBio (acquired by Merck for $2.75B); MRL Ventures (Merck) co-led ATB Therapeutics' €54M Series A for plant-based antibody production; and existing stakes from Novartis Venture Fund and Pfizer Ventures supported Artios Pharma's $115M Series D. This pattern suggests corporate venturing is targeting platform technologies (AI, manufacturing, novel modalities) rather than single-asset biotechs, hedging against individual program risk.
AI-driven drug discovery attracts crossover capital
Two AI-focused companies—Profluent ($106M with Bezos backing) and Enveda ($130M Series C)—raised significant capital for computationally driven drug discovery. Profluent's OpenCRISPR-1 validation and Enveda's 10-candidate pipeline demonstrate that AI platforms are transitioning from hypothesis to clinical validation. The presence of tech-oriented investors (Altimeter Capital, Bezos Expeditions, Kinnevik) alongside traditional life sciences VCs signals growing crossover interest in biology-AI convergence. Both platforms emphasize speed advantages (Enveda: 4x faster discovery; Profluent: foundation models for protein design) that resonate with investors seeking capital-efficient R&D models.
Cell and gene therapy financing remains constrained outside top-tier programs
While Aspen Neuroscience secured $115M for its autologous Parkinson's program, the broader cell and gene therapy sector faces headwinds. ASC Therapeutics' bankruptcy on November 19—a gene and cell therapy company—illustrates the funding chasm between well-capitalized programs with clinical traction and undercapitalized competitors. Aspen's differentiation (autologous approach eliminating immunosuppression, positive 6-month data, Fast Track designation) attracted Kite's strategic investment, whereas ASC Therapeutics' lack of disclosed clinical progress likely contributed to its inability to secure rescue financing. The divergence suggests investors are applying strict clinical and manufacturing de-risking standards to cell/gene therapy investments.
Royalty aggregators opportunistically acquire distressed assets
XOMA Royalty's November 21 acquisition of LAVA Therapeutics—structured as cash plus CVRs tied to partnered asset performance—exemplifies how royalty aggregators exploit valuation dislocations. LAVA's two early-stage bispecific antibodies partnered with J&J and Pfizer provide long-duration milestone and royalty optionality at minimal upfront cost. The structure transfers downside risk to former LAVA shareholders (via CVRs) while XOMA captures upside from established pharma partnerships. This deal type proliferates when public biotech valuations compress below partner validation levels, creating arbitrage opportunities for non-dilutive capital providers.
Bankruptcy filings reflect persistent undercapitalization
Two bankruptcy filings this week—ASC Therapeutics (Chapter 7, $10-50M liabilities) and Omni Health Services (Chapter 11, healthcare services)—underscore continued financial distress among smaller companies. ASC Therapeutics' liquidation rather than reorganization suggests no viable restructuring path, consistent with the 2024-2025 biotech funding drought. The 2025 bankruptcy pace (21+ through November) remains elevated versus historical norms, with companies unable to bridge to value-creating milestones facing binary outcomes: strategic acquisition (often at distressed valuations) or wind-down.
Disclaimer: I am not a lawyer or financial adviser. This content is not investment or legal advice. Information comes from public sources and details may change. Consult professionals for specific guidance.
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