Recro shares tank on FDA’s CRL; Prothena axes more than half of staff; Novo inks $200M deal with Epigen
→ Hard on the heels of the disastrous failure of its lead program, Prothena $PRTA is axing 57% of its staff, accounting for 63 jobs. CEO Gene Kinney says he wants to conserve his resources for the neurosciences work still in the pipeline.
→ Shares of Recro Pharma $REPH tanked this morning, dropping more than 50% after the FDA handed the company a rejection of its painkiller IV meloxicam. According to Recro, regulators weren’t convinced by their package, noting that “data from ad hoc analyses and selective secondary endpoints suggest that the analgesic effect does not meet the expectations of the FDA.” Recro plans to find a way forward at the FDA.
→ Novo Nordisk $NOVO has stepped up with a $200 million deal to collaborate with San Diego-based Epigen Biosciences on their LPA1 receptor antagonist EPGN696 for diabetic and chronic kidney diseases. That’s the total for the upfront and milestones. Epigen is also eligible for royalty payments in the deal.