Daily Snap - 22. October 2025

Author

Joachim Eeckhout
October 22, 2025

Good morning! Earlier this month, we signaled it, and now it’s official: Galapagos will wind down its cell therapy business after failing to find viable buyers, shifting its focus toward building a new drug pipeline through deals and acquisitions. The move will lead to approximately 365 layoffs—more than half the company’s workforce—and the closure of multiple sites across Europe, the U.S., and China. This decision follows years of R&D setbacks and a failed spin-off attempt earlier in the year. It marks a major turning point for a company once considered a biotech leader, and we hope those affected find new opportunities quickly.

Enjoy today’s read!

—Joachim E.

SNIPPETS

What’s happening in biotech today?

💸Chemistry 2.0: Chemify, a Glasgow-based deep-tech company pioneering the digitization of chemistry through its Chemputation platform, has raised over $50 million in an oversubscribed Series B round co-led by Wing Venture Capital and Insight Partners. Founded in 2022 as a University of Glasgow spin-out, Chemify integrates AI, robotics, and a curated reaction library to revolutionize molecule creation. The company also plans to open a new facility in Silicon Valley to further accelerate chemical innovation.

 💼Gates-backed: ENA Respiratory has raised US$22.4 million (AU$34 million) in Series B funding to advance Phase II development of INNA-051, a once-weekly dry powder nasal spray designed to enhance the body’s natural antiviral defenses against common respiratory viruses. Backed by new investments from the Gates Foundation and other investors, the funding will support a large-scale U.S.-based community trial (POSITS) involving up to 1,100 participants during the 2025–2026 respiratory virus season. INNA-051, which targets TLR2/6 to stimulate innate immunity, aims to reduce illness duration, prevent lung complications, and protect vulnerable populations.

🚀TROP2 hope: Merck is intensifying its efforts around sacituzumab tirumotecan (sac-TMT), a TROP2-directed antibody-drug conjugate licensed from China’s Kelun-Biotech, following promising data from recent Chinese phase 3 trials. At ESMO 2025, Kelun reported that sac-TMT significantly improved overall survival in EGFR-mutant NSCLC and progression-free survival in HR-positive, HER2-negative breast cancer. Though sac-TMT carries a notable risk of stomatitis, its overall safety profile remains manageable. Merck is conducting global trials to replicate Kelun’s success amid growing competition from AstraZeneca and Gilead. While its previous Leap program with Lenvima and Keytruda in esophageal cancer disappointed, Merck remains optimistic about sac-TMT’s potential across multiple cancers.

🌙 Depression moonshot: Alto Neuroscience’s stock more than doubled after the company announced plans to accelerate development of its depression drug candidate, ALTO-207, supported by a $50 million private placement. ALTO-207, a combination of Parkinson’s and anti-nausea drugs, was acquired from Chase Therapeutics for under $2 million and is being developed for treatment-resistant depression. Following a positive FDA meeting, Alto now aims to start a Phase 3 trial by early 2027. With sufficient funding into 2028 and $148 million in cash as of June 30, analysts project ALTO-207 could gain FDA approval by 2030 and exceed $1 billion in annual sales if successful.

 🎯NOD2 nudger: Exeliom Biosciences, a Paris-based clinical-stage biotech company, has secured a €2.85 million extension to its Series A round, bringing the total to €11.85 million and cumulative funding to nearly €30 million. The financing, led by Biocodex with support from Crescent Ventures and others, will accelerate clinical development and international expansion of Exeliom’s lead candidate, EXL01, a NOD2-targeting immunomodulator derived from a live bacterial strain. EXL01 is being evaluated in multiple Phase 2 trials for cancer, Crohn’s disease, and C. difficile infection.

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