SNAPSHOT

Novartis bets $1.4B on anti-inflammatory heart drug in Tourmaline buyout

Novartis is acquiring Tourmaline Bio for $1.4 billion to secure pacibekitug, a promising antibody that significantly lowered inflammation markers in a phase 2 cardiovascular trial.

Why it matters: Cardiovascular disease remains the leading global killer, yet there's no widely adopted anti-inflammatory treatment. Pacibekitug could fill that gap with a novel mechanism targeting IL-6, potentially redefining risk management for millions.

Backstory: Originally developed by Pfizer, pacibekitug was licensed by Tourmaline in 2022. The drug recently impressed in the Tranquility phase 2 trial, showing up to 86% C-reactive protein reduction (a marker of systemic inflammation) in patients with chronic kidney disease, who are at high risk for atherosclerotic cardiovascular disease.

Zoom in: Novartis paid $48/share, a 59% premium over Tourmaline’s last close. Tourmaline’s pacibekitug is also being tested for thyroid eye disease and was previously explored for Crohn’s, lupus, and RA.

Big picture: This move deepens Novartis’ cardiovascular portfolio and reflects pharma's growing interest in inflammation as a therapeutic target. It follows other Novartis deals to bolster heart health R&D, including recent partnerships with Argo Biopharmaceutical and ProFound Therapeutics.

Existing pipeline: Novartis already has a strong presence in cardiovascular disease markets with its approved drugs Leqvio and Entresto, and is also advancing its antisense oligonucleotide drug pelacarsen towards approval.

SNIPPETS

What’s happening in biotech today?

💰Series B: Epigenic Therapeutics, a China-based company specializing in epigenetic gene modulation therapies, has raised $60 million in a Series B funding round. The funding will accelerate the clinical development of its lead candidates, EPI-003 for chronic hepatitis B and EPI-001 for hypercholesterolemia, while also advancing preclinical programs and enhancing proprietary platforms such as EPIREG, which enables gene silencing via DNA methylation and histone modification.

🏭CDMO KR: Amid ongoing tariff uncertainties under the Trump administration’s trade policies, South Korea’s Samsung Biologics has signed a $1.3 billion contract manufacturing deal with an undisclosed U.S.-based pharmaceutical company, set to run through the end of 2029. This marks Samsung Bio’s second-largest contract since its 2011 founding and adds to a series of recent high-value agreements, including a $531 million deal in May and a $1.2 billion contract last October. Despite global CDMO slowdowns post-COVID-19, Samsung Bio has maintained growth, driven by expanded capacity and a new manufacturing plant. Other Korean firms like Lotte Biologics and Matica Biotechnology also continue securing U.S. contracts.

🦶Wound warrior: Former Pfizer executive Suneet Varma has been appointed CEO of Intent Biologics, a newly launched regenerative medicine startup spun out from Mayo Clinic-affiliated Rion. Backed by Rion’s platform and a perpetual global license, Intent is unusually advanced for a startup, with a phase 3 trial in diabetic foot ulcers planned for this year and several other late-stage studies set for 2026. Its lead candidate, PEP Biologic, is a first-in-class exosome-based topical therapy designed to promote tissue regeneration and reduce inflammation. The therapy showed promising results in a phase 2 trial, significantly improving healing outcomes compared to standard care.

🧳 Layoff shuffle: Lundbeck is restructuring its global operations by transitioning to a partnership model in 27 markets, resulting in the layoff of 602 employees, though many are expected to join partner companies. The company will collaborate with Swixx Group, Zuellig Pharma, and NewBridge Pharmaceuticals to maintain access to its medicines in these regions, which accounted for 12% of its 2024 revenue. This move, expected to be completed by December 1, is part of a broader capital reallocation strategy aimed at focusing resources on high-growth areas and late-stage R&D in neuro-rare and neuro-specialty diseases.

🚫FDA friction: Capricor Therapeutics has challenged the FDA's rejection of its Duchenne muscular dystrophy cell therapy, deramiocel, arguing that the agency misinterpreted efficacy data from its phase 2 HOPE-2 trial. In a July 16 response to the FDA’s Complete Response Letter (CRL), Capricor asserted that the trial’s primary endpoint was statistically significant when analyzed using a non-parametric test, contrary to the FDA's claim. The biotech also defended its cardiomyopathy data, disputing the FDA’s concerns about the lack of prespecified endpoints and statistical controls. Capricor criticized the agency’s unexpected public release of the CRL and remains hopeful pending upcoming HOPE-3 trial data.

SNAP AGAIN 

Lilly opens its AI vault to biotech startups with TuneLab platform

Eli Lilly launched TuneLab, an AI platform offering select biotech startups access to its proprietary drug discovery models and molecular data, while safeguarding participants' data through federated computing.

Why it matters: The move gives emerging biotechs access to high-powered AI tools they couldn’t afford alone, speeding early drug discovery and refining Lilly’s own models in the process.

Backstory: TuneLab leverages Lilly’s experience developing hundreds of thousands of molecules. Startups that have reached preclinical stages can join and train models locally on their data, enhancing Lilly’s AI without exposing trade secrets.

Big picture: This initiative is part of Lilly’s broader push into early-stage innovation, including its Catalyze360 program, Gateway Labs, and recent VC partnerships. It's also a signal of how pharma is embracing AI collaboration without relying solely on mega-mergers.

Zoom in: Lilly partnered with Rhino Federated Computing to enable distributed AI model training using Nvidia-powered infrastructure. Lilly’s approach favors flexible, scalable partnerships over traditional M&A, aiming to become “the partner of choice” for next-gen biotechs. This approach has already won them early partners such as Insitro, Circle Pharma, Firefly Bio, and Superluminal Medicines.

SPEED READ

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• Ridge Biotechnologies raised $25M in seed funding to develop AI-driven, enzyme-based therapeutics using machine learning and cell-free systems for precision drug design applications.

• Sandoz settled its US patent dispute with Regeneron, allowing its aflibercept biosimilar Enzeevu to launch by late 2026 and expand access to vision-loss treatment.

• Alchemab initiated its first human trial for Lilly-partnered ALS antibody ATLX- 1282, triggering a milestone payment and raising a $32M series A expansion to develop its AI-driven therapeutic pipeline.

• The Institute for Clinical and Economic Review (ICER) deemed obesity drugs from Novo and Lilly highly cost-effective for weight loss and metabolic health, but warned their widespread use could overwhelm healthcare budgets.

• Quotient Sciences and CPI launched a joint venture to accelerate mRNA drug development by integrating rapid RNA synthesis, LNP formulation, and adaptive clinical manufacturing capabilities.

• Permira is preparing to sell CDMO Cambrex for up to $4 billion, aiming to capitalize on growing investor interest and U.S. onshoring trends in pharmaceutical manufacturing.

• Bluejay Therapeutics launched its global phase 3 AZURE-2 trial of brelovitug for chronic hepatitis D, comparing it to Hepcludex with a focus on viral suppression and liver health.

• India’s Health Ministry proposed halving drug test license approval times to 45 days and easing trial permissions to accelerate new medicine development and manufacturing.

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