Daily Snap - 21. August 2025

Author

Joachim Eeckhout
August 21, 2025

Good morning! Just when you thought the next biotech boom would be in oncology, CRISPR, or maybe AI drug discovery, turns out it might actually be… pasta. Yes, Merck KGaA’s lab division just spun out a Massachusetts startup called EdiMembre, dedicated to bringing edible membranes (kind of scaffolding structures for protein growth) into the cultivated meat and legume-protein spaghetti business. With $400k in pre-seed funding, EdiMembre is now straddling the fine line between pharma innovation and fine dining. After six months of doom and gloom in biopharma, maybe the next “blockbuster” isn’t a drug after all, it’s a veggie steak.

Enjoy today’s read!

—Joachim E.

SNIPPETS

What’s happening in biotech today?

🚀Trial restart: Rocket Pharmaceuticals announced that the FDA has lifted a clinical hold on its Phase 2 gene therapy trial for Danon disease, a rare heart condition, following the death of a participant earlier this year due to capillary leak syndrome. The company identified a C3 complement inhibitor in the pre-treatment regimen as a potential cause and will resume the trial using a lower dose of its RP-A501 therapy without the added inhibitor. While the resumption marks a positive step, analysts remain cautious, focusing on the new dosing strategy’s efficacy and regulatory scrutiny. A potential product launch is projected for 2029.

📴Shutdown strategy:  Xoma Royalty Corp. has agreed to acquire Mural Oncology, a struggling cancer biotech spun out of Alkermes, for $2.035 per share, with a potential additional $0.205 depending on Mural’s cash reserves at closing, bringing the total value to about $36 million. This acquisition, Xoma’s fourth since June, is part of a growing trend where investors purchase and liquidate underperforming drug companies, often valued below their cash holdings, to return value to shareholders. Mural, which had ceased development of its lead IL-2 cancer drug nemvaleukin following poor clinical results and significant layoffs, deemed Xoma’s offer the most effective way to deliver value after a strategic review.

 🏁MASH milestone: Madrigal Pharmaceuticals has received conditional European Commission approval for Rezdiffra (resmetirom), making it the first targeted therapy for metabolic dysfunction-associated steatohepatitis (MASH) with moderate to advanced fibrosis available in Europe. The drug, already FDA approved in the U.S. since March 2024, will launch across Europe beginning with Germany in Q4 2025. While Rezdiffra is forecast to achieve global sales of $4.8 billion by 2031, its lead may be challenged by Novo Nordisk’s Wegovy, recently FDA-approved for the same indication in the US and pending EU approval.

✂️Gene cuts: Catalent is laying off 350 employees from its gene therapy manufacturing operations in Maryland, primarily at its Harmans campus, following reduced demand from a major customer believed to be Sarepta Therapeutics. The cuts also affect Catalent’s University of Maryland BioPark facility, which develops viral vectors for clinical use. Sarepta has faced setbacks tied to patient deaths linked to its Duchenne muscular dystrophy gene therapy Elevidys, leading to halted shipments, regulatory scrutiny, and its own workforce reduction. The layoffs mark the latest in a series of staff cuts by Catalent, which has been restructuring amid its acquisition by Novo Holdings and cost-cutting initiatives.

🥊Patent rumble:  Enanta Pharmaceuticals has filed a new patent infringement lawsuit against Pfizer in Europe, alleging that Pfizer’s Covid-19 antiviral pill, Paxlovid, unlawfully uses its patented protease inhibitor technology. This follows a similar U.S. lawsuit filed in 2022, which faced a setback when a Massachusetts judge ruled the patent invalid in late 2024, a decision Enanta is appealing. The European lawsuit, brought before the EU’s Unified Patent Court, targets Pfizer’s activities across 18 EU countries and centers on the European counterpart to the disputed U.S. patent. Pfizer, while acknowledging the suit, maintains confidence in its intellectual property related to Paxlovid.

TOUR OPERATOR

Upcoming events