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Innovacell wants to revive Tokyo’s biotech IPOs & Compass' psychedelics success in Phase 3 for depression

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Joachim Eeckhout & Eduardo Longoria
February 18, 2026

 

Good morning!

Cyrano Therapeutics says its phase 2 “Flavor” study (kudos for the nosy theme) hit its primary safety endpoint, clearing the way for a phase 3 push of CYR-064, an intranasal theophylline formulation for persistent post-viral smell loss. No treatment-related serious adverse events were reported. The company also cites durable improvements across multiple secondary efficacy measures, but hasn’t yet released the numbers.

Why it matters: There’s still no approved therapy for hyposmia, a reduced ability to smell or detect odors that affects millions and often results from viral infections such as COVID-19. A positive pivotal trial could make CYR-064 first-in-class.

Context: Theophylline has lingered in the research world for decades. Now, with fresh capital ($21.8M raised so far) and a Japan option deal with Kyorin in place, Cyrano is positioning it for something bigger.

Bottom line: Smell may be invisible, but the market opportunity isn’t.

— Joachim E.

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SNAPSHOT

Innovacell targets $92M IPO to revive Tokyo’s biotech listing market

The best place to take a photo of the Tokyo Tower is at the viewing deck of Mori building in Roponggi Hills

Tokyo-based cell therapy company Innovacell plans to raise 14.17 billion yen ($92 million) in a Feb. 24 IPO, aiming to become the first drug development biotech to list on the Tokyo Stock Exchange in over a year.

Why it matters: A successful IPO could signal a reopening of Japan’s biotech capital markets after a drought in 2025 and reflect renewed investor appetite for late-stage, commercialization-ready biotechs.

Backstory: Innovacell was spun out of the Medical University of Innsbruck in Austria and established a Japanese parent company in 2021. Its latest funding round, a 7.3 billion yen ($48 million) series D in August 2025, supported a phase 3 trial of its lead asset, ICEF15, and commercial preparation efforts. While several biotechs went public in Tokyo in 2024, none did in 2025, mirroring a global slowdown in biotech IPOs.

Big picture: After a sluggish 2025 for biotech listings worldwide, 2026 is shaping up as a rebound year. Companies are lining up for IPOs in the U.S., and other exchanges may follow if market momentum holds. The Hong Kong Stock Exchange (HKEX), for example, has already had six companies apply to be listed on it in the past week.

Zoom in: Innovacell’s lead program, ICEF15, is a regenerative cell therapy in a multi-regional phase 3 trial for urge fecal incontinence.

What’s next: Proceeds will support the ongoing phase 3 trial in Japan and Europe, prepare for a U.S. late-stage study, and build manufacturing and commercial infrastructure across key markets.

SNIPPETS

What’s happening in biotech today?

🍄 Psychedelics success: Compass Pathways reported positive results from a second phase 3 trial of its psilocybin-based therapy, COMP360, for treatment-resistant depression, boosting its share price by over 30% and paving the way for regulatory discussions. In the study, two 25 mg doses given three weeks apart led to a statistically significant 3.8-point reduction in MADRS depression scores (a clinical measure of depression) at Week 6 compared to a 1 mg control. The company highlighted rapid onset and durable effects, with prior data showing benefits lasting up to 26 weeks. Safety findings showed low suicidality rates with no imbalance between groups. Compass plans to seek FDA approval through a rolling submission and anticipates expedited review.

💶 Trial funding: Newron Pharmaceuticals has secured up to €38 million to advance Phase III trials of evenamide, a potential first-in-class schizophrenia therapy targeting dysfunctional neural circuitry rather than dopamine receptors. The financing includes €15 million upfront, with additional milestone payments tied to development progress and positive results from the ENIGMA-TRS trials, including a key 12-week readout expected in late 2026. Evenamide modulates voltage-gated sodium channels to reduce pathological glutamate release and may address positive, negative, and cognitive symptoms, particularly in treatment-resistant patients. Positioned as an add-on to existing antipsychotics, the drug represents a broader industry shift toward circuit-based approaches amid cautious optimism following past late-stage setbacks.

👁️ En eye for detail: Ocular Therapeutix reported Phase 3 data showing its investigational wet age-related macular degeneration drug, Axpaxli (OTX-TKI), achieved statistical superiority over Regeneron and Bayer’s Eylea, with 74.1% of patients losing fewer than 15 vision letters at roughly eight and a half months after a single dose, compared with 55.8% for Eylea. Despite the 18.3-point advantage, shares fell about 22%, as investors had expected weaker Eylea performance and a larger benefit margin. Ocular plans to seek an FDA meeting to pursue a superiority label and is running a second Phase 3 trial to assess real-world dosing comparisons, while also advancing studies in diabetic retinopathy.

 📊 High hopes: Sanofi has highlighted 44-week phase 2 extension data for its Teva-partnered anti-TL1A antibody duvakitug as evidence of durable efficacy in ulcerative colitis and Crohn’s disease, calling it a “key opportunity” in its pipeline following recent setbacks. In the Relieve UCCD study extension, 47% and 58% of ulcerative colitis patients on 450-mg and 900-mg doses, respectively, achieved clinical remission at 44 weeks, while 41% and 55% of Crohn’s patients achieved endoscopic improvement. The drug was generally well tolerated. With phase 3 trials underway, duvakitug, licensed by Sanofi from Teva for $500 million, will compete with other late-stage anti-TL1A therapies from Merck and Roche.

😵‍💫 No recruits: Boehringer Ingelheim has discontinued development of its inhaled cystic fibrosis gene therapy, BI 3720931, after early clinical data failed to support further investigation. The Phase 1 trial, launched last year in collaboration with the UK Respiratory Gene Therapy Consortium and Oxford Biomedica, enrolled only five of a planned 36 patients before being terminated. The study targeted cystic fibrosis patients ineligible for CFTR modulator therapies, which are ineffective for about 15% of patients. BI 3720931 was the first lentiviral gene therapy for the disease to enter human trials. The setback reflects broader challenges in the field, though other companies, including Krystal Biotech, continue advancing alternative gene therapy approaches.

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