Recursion lays out $300M+ goal in IPO terms; Evotec and Bristol Myers team up to spin out German research
Recursion is nearly ready to make its public debut, and the biotech set out what the potential raise might look like Monday.
Recursion set its IPO terms, planning to raise $306 million by offering shares in the $16 to $18 range. With 18 million shares likely to be offered, that would command a market value of about $3 billion, according to Renaissance Capital.
That’s a much higher figure than the $100 million initially penciled in their S-1, though that number has essentially been a placeholder for many biotechs that have gone public throughout the last 12 months’ boom.
The IPO comes after Recursion’s Series D in September 2020, which at $239 million marked one of the largest, if not the single largest, funding rounds for an artificial intelligence-focused biotech. Recursion also signed onto a deal with Bayer, promising up to $100 million in milestones for each of up to 10 programs the companies could pursue.
Recursion plans to list under the ticker $RXRX. — Max Gelman
Collaboration between Evotec and Bristol Myers to create German spin-off companies
Evotec and Bristol Myers Squibb have collaborated to launch a $20 million project to bring together the academic research from the Rhine-Main-Neckar region of Germany and advance therapeutic options into drug discovery and development projects.
Named beLAB2122, the collaboration is part of Evotec’s BRIDGE (Biomedical Research, Innovation and Development Generation Efficiency) programs. It is the fifth BRIDGE project launched by Evotec, including in Oxford and Toronto.
Approximately 30-40% of all FDA approved drugs come from European scientists, according to Thomas Hanke, the head of academic partnerships at Evotec.
“Academic projects need to be put on an industry-robust platform, and that’s what we do with our BRIDGEs,” Hanke said in a video on the company’s YouTube page.
The BRIDGE will tap into Europe’s academic clusters of life science with the goal of creating spinout companies. The collaboration comes at a time when the efficient translation of science to a business is becoming increasingly important.
The project is supported by BioRN, Rhein Neckar, the European Molecular Biology Laboratory and the German Cancer Research Center, among others. The BRIDGE program has been in existence since 2016, and will celebrate its 5th anniversary in November. — Josh Sullivan
vTv earns breakthrough therapy designation for Type 1 diabetes treatment
North Carolina biotech vTv Therapeutics has won a breakthrough therapy designation for its new lead program.
The FDA handed down the BTD for TTP399 as an adjunct to insulin for the treatment of type 1 diabetes, vTv announced Tuesday. A once-daily oral glucokinase activator, TTP399 recently completed a randomized Phase II study that showed statistically significant improvement in HbA1c relative to placebo, the company said.
Investors welcomed the news, with vTv shares $VTVT up more than 30% in early Tuesday trading.
vTv’s Phase II study was conducted in two parts. The first part randomly assigned 20 participants undergoing continuous glucose monitoring and subcutaneous insulin infusion, while the second part randomly assigned 85 patients receiving multiple daily injections of insulin or infusions. Patients received either 800 mg of TTP399 or placebo and were treated for 12 weeks.
After that period, the difference in change from HbA1c baseline compared to placebo was -0.7% in part 1 and -0.21% in part 2. Though vTv did not report a p-value, they said these figures met statistical significance. Researchers also saw severe or symptomatic hypoglycemia events decrease by 40% relative to placebo in part 2.
It’s a key endorsement for vTv following their setback in Alzheimer’s a few years ago with a separate program. Their former lead drug azeliragon failed two parts of a pivotal study back in 2018, but they noted that a small subgroup of patients who also had diabetes saw some benefit. — Max Gelman
StoneWise reels in $100M for AI platform
StoneWise, a Beijing-based biotech looking to bridge AI and drug discovery, now has $100 million more to work with.
The company completed Series B and B+ rounds on Monday, according to DealStreetAsia. Legend Capital led the B round, while Lightspeed China and Greater Bay Homeland Investments Limited co-led the B+, the news agency reported. The company said it has completed four rounds of financing in the last year, including a $10 million Series A, followed by a Series A+.
In February 2020, StoneWise shared the electronic structure data from more than 1,400 nucleoside inhibitors against various RNA polymerases, and used its AI platform to rank dozens of nucleosides from these molecules as potential inhibitors against SARS-CoV-2 RNA polymerase. — Nicole DeFeudis