Quince buys a rare disease biotech; Heron reduces headcount

Quince Therapeutics will buy the private biotech EryDel SpA in a stock deal, with up to $485 million on the line in development, regulatory and commercial biobucks.

EryDel stockholders will own about 16.7% of the combined company following the closing, which is expected to occur this quarter. Both boards have approved it.

With the deal, Quince said it will have funding to keep the lights on into 2026. Its $87.6 million will bankroll a Phase III clinical trial for EryDel’s lead asset and an NDA submission, pending study results. EryDel’s EryDex is being tested for a rare pediatric neurological disease known as ataxia-telangiectasia. There are no approved treatments for the life-threading condition, but researchers are looking into custom gene therapies.

The deal caps a long journey for Quince in recent years. It recently rejected a takeover proposal, rebranded from Cortexyme, stopped work on an Alzheimer’s asset, bought a private startup, laid off employees and shuffled the C-suite, among other moves.

Another executive is leaving; Quince tucked into an SEC filing on Monday. Medical chief Karen Smith’s departure, which “is not the result of any disagreement” with Quince, is effective Sept. 1, per the filing. — Kyle LaHucik 

Heron Therapeutics lays off 25% of workforce, nabs $30 million

Heron Therapeutics said it will let go of 25% of its employees. At the same time, it announced $30 million from a private placement.

Craig Collard

The San Diego-based biotech will also limit R&D expenses and do a “right-sizing of key vendor contracts” to save money with the hopes of making it to profitability in late 2024.

The commercial-stage biotech said it expects to save $75 million in cash through 2025 as part of the overhaul.

A new management team led a strategic review of the business. Since CEO Craig Collard’s appointment to the post in early April, he took over commercial duties from the chief commercial officer and SVP of commercial for acute care, and he named a new chief development officer and CFO. — Kyle LaHucik 

Syndax, Incyte say graft-versus-host disease antibody succeeded pivotal trial

Syndax and Incyte said Monday morning their antibody axatilimab passed a Phase III study in chronic graft-versus-host disease.

At a dose of 0.3 mg/kg every two weeks, the overall response rate was 74%. And of those patients, 60% continued to respond to treatment at one year.

In the 0.3 mg/kg arm, serious adverse events occurred in 38% of patients — five patients in that study arm experienced adverse events leading to discontinuation of treatment.

Axatilimab inhibits CSF-1R signaling to restrict white blood cell development. Syndax and Incyte said they plan to file the drug with the FDA by the end of the year and will present full data at a future medical conference. — Lei Lei Wu

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