Daily Snap - 12. August 2025

Author

Joachim Eeckhout
August 12, 2025

Good morning! Researchers at King’s College London have developed a new cancer drug, KCL-HO-1i, and launched the spinout company Aethox Therapeutics to advance it toward clinical use. The drug targets heme oxygenase-1 (HO-1), a protein made by tumour-associated macrophages that protects cancer cells from immune attack and reduces chemotherapy effectiveness. In mouse models of breast cancer, the oral drug, taken between chemotherapy sessions, made even resistant tumours respond to multiple chemotherapy types. The newly founded company plans to enter clinical trials within two years to develop its candidate as a broad companion therapy to existing cancer treatments. We wish them good luck and welcome them to the biotech scene!

Enjoy today’s read!

—Joachim E.

SNIPPETS

What’s happening in biotech today?

💥lncRNA bust: NextRNA Therapeutics, a Massachusetts-based biotech focused on long noncoding RNA (lncRNA) therapies, is winding down operations after failing to meet a milestone in its up to $547 million oncology collaboration with Bayer, which would have extended its cash runway. Founded in 2022 with $56 million in funding, NextRNA pursued both disclosed and undisclosed lncRNA targeting programs, including a preclinical small molecule candidate. CEO Dominique Verhelle cited weak market conditions and the inherent challenges of pioneering new biology. Bayer will continue advancing the partnered program independently, while NextRNA’s 27 staff face closure amid broader biotech sector headwinds.

💊DPP-1 deal: Expedition Therapeutics, a U.S. based biotech focused on advancing China-developed drugs globally, has licensed global rights, excluding mainland China, Hong Kong, and Macau, to Fosun Pharma’s investigational oral DPP-1 inhibitor XH-S004 for $17 million upfront. The deal, valued at up to $645 million with potential development, regulatory, and sales milestones plus royalties, centers on a small molecule in phase 2 testing in China for non-cystic fibrosis bronchiectasis and phase 1b testing for chronic obstructive pulmonary disease. With no globally approved drugs targeting DPP-1, Expedition will lead development of the drug outside China.

🏳️ROR1 retreat: Ipsen has terminated its $875 million collaboration with Sutro Biopharma for STRO-003, a ROR1-directed antibody drug conjugate, after reviewing new data and shifts in the ROR1 therapeutic landscape. Signed in April 2024, the deal included $75 million upfront and in equity, but Ipsen’s exit follows mixed safety and efficacy results from other ROR1 targeting programs, including Merck’s ADC and Lyell Immunopharma’s CAR-T therapy. While Sutro describes STRO-003 as well engineered, it will not develop the drug internally, forfeiting up to $800 million in potential milestones. Sutro, with $205.1 million in cash and a runway to 2027, will focus on its other partnered and in-house ADC programs.

🦠Gut goals: Equillium has secured up to $50 million in financing to advance its investigational aryl hydrocarbon receptor (AhR) modulator EQ504 into the clinic. The private placement includes $30 million upfront for 52.6 million shares or prefunded warrants, with an additional $20 million contingent on meeting clinical initiation and share price milestones. EQ504, designed as a colon-targeted oral therapy for ulcerative colitis and pouchitis, aims to modulate IL-10 and IL-22 for anti-inflammatory and tissue regenerative effects without immunosuppression. A phase 1 study is planned for 2026, with data expected six months later; proceeds are expected to extend Equillium’s cash runway through 2027.

🧬Genomic goldmine: Tahoe Therapeutics has raised $30 million to create the world’s largest dataset for training AI models of human cells. Building on its open source Tahoe-100M dataset, the company plans to generate one billion single-cell data points mapping one million drug patient interactions, enabling large scale biological foundation models to improve precision medicine and reduce clinical trial failures. Tahoe will grant exclusive access to a single strategic partner to accelerate clinical translation while advancing its own therapeutic programs.

TOUR OPERATOR

Upcoming events

Share the Snap!

Know someone who’d enjoy this? Hit forward and pass it along.