PE Firms Eye €7.5 Billion Leveraged Financing for Sanofi Unit

 Potential bidders for Sanofi’s consumer health division are mulling debt packages of about €7.5 billion ($8.16 billion), according to people familiar with the matter, which would make it one of the biggest leveraged buyout financings in recent years.

Would-be buyers are set to approach both banks and direct lenders, said the people, who asked not to be identified because the process is confidential.

Private equity firms Advent International, Blackstone Inc., Bain Capital, CVC Capital Partners, EQT AB and KKR & Co. were among those to have shown interest in the unit, which could be valued at about $20 billion in a deal, Bloomberg News reported last month. Clayton Dubilier & Rice also is considering making a potential bid, the people said.

Traditional lenders are very much back in the market for funding risky transactions after spending months on the sidelines as they struggled to offload the debt deals on their balance sheets amid soaring interest rates, leaving the field open to direct lenders.

Now, with investors betting that rates have peaked, banks are more confident that they can underwrite big acquisitions and then sell the debt on via broadly syndicated loans. Buyout firms, as a result, are increasingly leaning toward banks to finance their deals because the loans are cheaper than private credit.

CD&R declined to comment.

Sanofi said in October it planned to split off the division, probably through a stock market listing. A company representative said Friday it’s still reviewing potential separation scenarios and believes a capital markets transaction is the most likely, at the earliest in fourth quarter.

https://finance.yahoo.com/news/pe-firms-eye-7-5-140039330.html

Oh Canada: Parliament Moves To Impose Potential Life Imprisonment For Speech Crimes

 by Jonathan Turley,

We have previously discussed the unrelenting attacks by Canadian Prime Minister Justin Trudeau and his allies on free speech. There has been a steady criminalization of speech, including even jokes and religious speech, in Canada. Now, the Canadian parliament is moving toward a new change that would allow the imposition of life imprisonment on those who post views deemed supportive of genocide. With a growing movement calling Israel’s war in Gaza “genocide,” the potential scope of such a law is readily apparent. That appears to be its very draw for anti-free speech advocates in the country.

The Online Harms Act, or Bill C-63 increases the potential penalties from five years to life imprisonment. It also increases the penalty for the willful promotion of hatred (a dangerously ill-defined crime) from two years to five years. The proposed changes constitute a doubling down on Canada’s commitment to reducing free speech for citizens despite criticism from many in the civil liberties community.

There is also a chilling option for house arrest if a judge believes a defendant “will commit” an offense. In other words, if a judge thinks that a citizen will be undeterred and try to speak freely again.

Justice Minister Arif Virani employed the same hysteria to convince citizens to surrender their freedoms to the government. He expressed how terrified he was with the potential of free speech, stating that he is “terrified of the dangers that lurk on the internet for our children.”

It is not likely to end there.

Today the rationale is genocide. However, once the new penalties are in place, a host of other groups will demand similar treatment for those with opposing views on their own causes. 

This law already increased the penalties for anything deemed hateful speech.

The law comes after Canada blocked a Russian dissident from becoming a citizen because of her violation of Russian anti-free speech laws.

In a telling act, the government said that the same conduct (i.e., free speech) could be a crime in Canada. 

Indeed, it may now be punished even more harshly.

https://www.zerohedge.com/political/oh-canada-parliament-moves-impose-potential-life-imprisonment-speech-crimes

Netanyahu Greenlights Rafah Offensive, Rejects 'Still Absurd' Hamas Ceasefire Plan

 Israeli Prime Minister Benjamin Netanyahu has issued formal approval for the Israel Defense Forces (IDF) to go into Rafah while announcing the rejection of the "still absurd" Hamas demands which were presented this week in ceasefire talks.

"The IDF is prepared for the operation and to evacuate the [civilian] population," the prime minister's office said in a statement. "He also approves an IDF plan of operation to enter the southern Gaza city of Rafah," the PM's office affirmed to the Times of Israel.

Axios' Barak Ravid has reported that Hamas presented its plan Thursday, which lays out a first phase of a six week ceasefire that includes the release of about 40 Israeli hostages, but Israel would have to free some 400 Palestinian prisoners, among these many who have killed Israelis.

Crucially, the Hamas proposal has also included the "return of displaced Palestinians to their homes and a withdrawal of Israeli forces from the enclave."

Israel has repeatedly said that the demand to withdraw all Israeli forces from the Strip remains a non-starter, given also Netanyahu has vowed to not halt the military operation until Hamas is eradicated.

Netanyahu had initially stated Thursday: "Hamas continues with its preposterous demands. The war cabinet will be updated tomorrow."

Given the IDF ground offensive on Rafah looks to imminently proceed (though Israeli officials last month had initially offered a start date of March 10, which has come and gone), Israel still has a problem concerning the increasing condemnations coming out of Washington.

On Thursday Senate majority leader Chuck Schumer, who was prior to this week seen as someone staunchly in Netanyahu's corner, in a blistering speech called the Israeli PM a "pariah" and said he has "lost his way". 

As we detailed earlier, the surprise rebuke followed on the heels of an annual "threat assessment" compiled by US intelligence agencies, which was released Monday and questioned Netanyahu’s hold on power. Below is what it said:

"Netanyahu’s viability as leader as well as his governing coalition of far-right and ultraorthodox parties that pursued hardline policies on Palestinian and security issues may be in jeopardy."

It continues, "Distrust of Netanyahu’s ability to rule has deepened and broadened across the public from its already high levels before the war, and we expect large protests demanding his resignation and new elections. A different, more moderate government is a possibility."

Israeli war cabinet meets

According to Axios, Israel has been making some limited strides to try and calm US concerns over the humanitarian situation and the soaring death toll. 

"Israeli Minister of Defense Yoav Gallant signed on Thursday a letter to the Biden administration assuring Israel will use U.S. weapons according to international law and allow U.S.-supported humanitarian aid into Gaza, two Israeli and U.S. officials told Axios," the report indicated.

https://www.zerohedge.com/geopolitical/netanyahu-greenlights-rafah-offensive-rejects-still-absurd-hamas-ceasefire-plan

Immuneering stock downgraded by Jefferies on Lackluster Phase 1 Data

 On Friday, Immuneering Corporation (NASDAQ:IMRX) experienced a change in its stock rating, as it was downgraded from Buy to Hold by Jefferies. The analyst also revised the company's price target significantly, dropping it to $3.00 from the previous $16.00. This adjustment comes after the evaluation of the latest clinical data from the company's Phase I trials.

The Phase I trial data revealed good safety profiles and some instances of tumor shrinkage. However, there were no confirmed responses, which has tempered enthusiasm among investors. The analyst pointed out that more patients and clearer, more compelling data would be necessary to rekindle investor interest. This perspective led to the decision to shift to a Hold rating with a price target that aligns with the company's current cash per share, pending further data expected by year-end.

The trials, which involved patients with heterogeneous tumors all bearing RAS mutations, presented challenges. The expectation was that the drug would exhibit more compelling activity due to the specific mutations targeted. Despite these hurdles, the safety and tumor shrinkage observed were positive takeaways, albeit not sufficient to maintain a higher stock rating or price target.

Immuneering Corporation's stock is currently trading near its existing cash value of $85 million. However, projections indicate that by the end of 2024, the company's cash reserves are anticipated to be less than $50 million. This financial forecast has been factored into the revised price target and rating.

https://www.investing.com/news/stock-market-news/immuneering-stock-downgraded-by-jefferies-on-lackluster-phase-1-data-93CH-3339638

Astellas Backs Out of Potential $340M Licensing Deal with Cartesian

 Astellas is putting the kibosh on a potential $340 million licensing deal it inked last year with Cartesian Therapeutics to develop a treatment for Pompe disease, according to an SEC filing on Thursday.

Cartesian said in the filing that it received notification from Astellas stopping the license and development agreement from 2023. The termination will become effective on June 6, 2024.

After the termination, Astellas will have no financial commitments or liabilities related to its Xork product candidate.

Last year, Cartesian—which merged with Selecta Biosciences—granted Astrellas an exclusive license to its IdeXork tech. From this came the candidate dubbed Xork, an immunoglobulin G protease intended to be developed and commercialized to treat Pompe disease in combination with Astellas’s AT845 candidate, an AAV candidate.

Astellas paid $10 million upfront with Cartesian potentially eligible to receive up to $340 million in milestone payments, sales and tiered royalties. The January 2023 deal was originally with Selecta, which merged with Cartesian in November 2023.

The SEC document said Cartesian did not incur any early termination penalties due to Astellas’ move. According to the deal announcement last year, Selecta was responsible for the development and manufacturing of Zork and would maintain the right to develop other indications beyond Pompe.

“Xork has the potential to expand access to life-changing gene therapies by addressing pre-existing immunity to AAV. Most other IgG proteases in development are derived from common human pathogens, and as a result, there is a high prevalence of pre-existing antibodies against these proteases that can restrict their use,” Selecta CEO Carsten Brunn said at the time. “Xork is differentiated by its low cross-reactivity to pre-existing antibodies in human serum.”

The Selecta merger with Cartesian last year included a $60.25 million private financing led by a member of Selecta’s board. The combined company was expected to have over $110 million on hand, which was meant to support the development of the Cartesian pipeline through Phase III of its Descartes-08 T-cell therapy for treating myasthenia gravis. 

Before the merger last year, Selecta was froze investments in its pipeline and decided to focus its efforts on a candidate for chronic refractory gout. This came as Selecta saw slipping cash flows.

Astellas entered into a research and licensing deal with Kelonia Therapeutics in February 2024 to develop new cancer therapies, paying $40 million upfront and $800 million up for grabs for Kelonia in potential milestone payments.

https://www.biospace.com/article/astellas-backs-out-of-potential-340m-licensing-deal-with-cartesian-/

Merck’s KEYTRUDA Plus Chemoradiotherapy Improved Overall Survival in Cervical Cancer

  Merck (NYSE: MRK), known as MSD outside of the United States and Canada, today announced that the Phase 3 KEYNOTE-A18 trial, also known as ENGOT-cx11/GOG-3047, investigating KEYTRUDA, Merck’s anti-PD-1 therapy, in combination with chemoradiotherapy (CRT) met its primary endpoint of overall survival (OS) for the treatment of newly diagnosed patients with high-risk locally advanced cervical cancer.

https://www.biospace.com/article/releases/merck-s-keytruda-pembrolizumab-plus-chemoradiotherapy-crt-significantly-improved-overall-survival-os-versus-crt-alone-in-patients-with-newly-diagnosed-high-risk-locally-advanced-cervical-cancer/

BioXcel Patent for Method of Treating Agitation in Dementia

 BioXcel Therapeutics, Inc. (Nasdaq: BTAI), a biopharmaceutical company utilizing artificial intelligence to develop transformative medicines in neuroscience and immuno-oncology, today reported that the European Patent Office (EPO) granted the Company’s European Patent No. 3,562,486 (the “486 patent”) on March 13, 2024. The 486 patent covers the use of dexmedetomidine administered sublingually to treat agitation in individuals with dementia. The patent encompasses a broad range of dosage forms, including films such as BXCL501 (sublingual dexmedetomidine), wafers, and tablets, at dexmedetomidine doses ranging from 3 mcg to 100 mcg.

https://www.biospace.com/article/releases/bioxcel-therapeutics-announces-european-patent-office-s-grant-of-patent-for-method-of-treating-agitation-in-dementia-using-sublingual-dexmedetomidine-/