Search This Blog

Wednesday, August 13, 2025

Sarepta sells $174M in Arrowhead stock to stretch cash runway

 Sarepta Therapeutics is selling off Arrowhead Pharmaceuticals shares to stretch its cash runway, while also inking a share transfer to pay off half of a $100 million payment owed to the latter.

The beleaguered gene therapy biopharma sold more than 9.2 million shares of Arrowhead common stock that are expected to equate to at least $174 million in gross proceeds, according to a post-market release from Sarepta on Aug. 13.

The company said it would use the money “for cash proceeds,” according to the release.

Previously, Sarepta owned 11.9 million shares of Arrowhead stock, according to a separate Aug. 13 release from the partner.

The money comes from a privately negotiated block trade, a type of transaction between the buyer and seller that is settled away from public markets to reduce its impact on price. 

Furthermore, Sarepta made a deal to transfer 2.6 million shares of Arrowhead stock to satisfy $50 million of Sarepta’s $100 million milestone obligation.

The payment is tied to Arrowhead hitting the first enrollment target in a phase 1/2 trial for an investigational RNA interference (RNAi) therapeutic designed to treat type 1 myotonic dystrophy (DM1). The $100 million payment is also dependent upon regulatory approval to launch dose escalation in the same study.

At the end of July, Arrowhead said it met both milestone payment conditions and expected the $100 million within 60 days.

Sarepta confirmed with Fierce Biotech that it still has to pay the other half of the $100 million payment. Arrowhead has chosen to receive the rest of the payment in cash, according to the company’s release.

“The sale of our equity investment is a strategic decision to help fund this milestone but does not change our conviction in the utility of the siRNA approach and our confidence in the work Arrowhead is doing to apply this technology across several disease states,” Sarepta CEO Doug Ingram said in the release.

The biopharma plans on sharing early data from the phase 1/2 trial sometime this year. 

Back in November of last year, Sarepta inked a major pact with Arrowhead, making a $500 million upfront payment and a $325 million equity investment to secure rights to seven programs. The deal requires Sarepta to pay $50 million a year for five years, plus pay out $300 million in milestones tied to the DM1 trial.

The new announcement comes amid a rapidly evolving saga that stemmed from several deaths occurring in patients who received Sarepta’s gene therapies. The uncertain prospect of the company’s flagship Duchenne muscular dystrophy gene therapy Elevidys does not bode well for Sarepta’s financial standing, as the company faces more than $1 billion in debt that will be due by September 2027.

The biopharma had $510.6 million on hand as of the end of the second quarter, according to an earnings document.

https://www.fiercebiotech.com/biotech/sarepta-sells-174m-arrowhead-stock-stretch-cash-runway-transfers-shares-pay-half-milestone

Inhibrx Q2 Results: $186M Cash Runway as Two Major Cancer Drug Trials Near Data



Inhibrx (NASDAQ:INBX) reported Q2 2025 financial results following its spin-off from Former Parent and the $2.0B INBRX-101 sale to Sanofi in May 2024. The company ended Q2 with $186.6 million in cash, down from $216.5M in Q1. Revenue was $1.3 million, up from $0.1M in Q2 2024.

R&D expenses decreased to $22.3 million from $67.6M, while G&A expenses dropped to $6.4 million from $93.4M. The company reported a net loss of $28.7 million ($1.85 per share) compared to net income of $1.9B in Q2 2024. Two key clinical trials are progressing with data readouts expected in late 2025: the ozekibart Phase 2 trial for chondrosarcoma and INBRX-106 Phase 2/3 trial for head and neck cancer.

'US pharma tariffs likely weeks away, Euro sources say'

 The announcement by President Donald Trump's administration of the results of a probe into pharmaceutical imports and new sector-specific U.S. tariffs likely remains weeks away, four official and industry sources said, later than initially promised as he focuses on other matters.

Commerce Secretary Howard Lutnick had said in April when the review of whether reliance on foreign drug production threatens U.S. national security was launched that he anticipated that it would conclude between mid-May and mid-June. Global pharmaceutical companies are bracing for the outcome of the investigation, which will usher in sector-specific tariffs that Trump has said could start small and eventually rise to 250%.

The Republican president said as recently as last week that his plan relies on phased-in tariffs, giving drugmakers time to increase manufacturing in the United States as he pushes to alter what he says are global trade distortions in many industries.

One government official in Europe and a source with knowledge of the White House process, as well as two sources at European drug firms familiar with the process, told Reuters that the report and tariffs announcement was not imminent and likely weeks away. These sources spoke on condition of anonymity.

A White House spokesperson, asked about media reporting indicating that the results of the probe could be several weeks away, cautioned that such reports were pure speculation unless confirmed by the White House. The spokesperson declined to give further details about the timing of the pharma probe or one involving semiconductors.

The investigation is examining pharmaceutical imports ranging from finished prescription drugs to active pharmaceutical ingredients, called APIs, and other raw materials, with the results to be disclosed in a Commerce Department report.

Lutnick said last month the tariff plan that will be based on the report would be completed by the end of July. Lutnick then said on July 29 it would be two more weeks.

The investigation was launched under Section 232 of the Trade Expansion Act of 1962. While the investigation is ongoing, the pharmaceutical sector has been exempted from the sweeping tariffs imposed by the Trump administration.

The United States has reached bilateral trade deals with the UK, Japan, South Korea and the European Union that promised more favorable terms for their pharma exports than those expected to be levied on the sector globally.

A European government official said that an announcement before the end of August appears unlikely but cautioned that the timeline could shift depending on other developments.

https://finance.yahoo.com/news/exclusive-us-pharma-tariffs-likely-194825041.html

KBR secures NASA contract worth up to $3.6 billion for astronaut health support

Engineering contractor KBR said on Wednesday it had secured a $2.46 billion contract from the National Aeronautics and Space Administration to support astronaut and worker health and safety during space missions.

Shares of KBR rose 2.7% in extended trading.

The five-year agreement, starting November 1, includes two optional extensions potentially extending the contract until 2035. Most work will be conducted at NASA's Johnson Space Center in Houston, Texas.

The total estimated value, including the extensions, is $3.6 billion, the company said.

The deal extends KBR's partnership with the space agency and underscores its role in spaceflight operations.

KBR will provide services such as monitoring crew health, occupational health support and researching risk reduction strategies for astronauts, including those involved in the Artemis program aimed at future Moon missions.

"This contract reinforces KBR's leadership in human spaceflight operations," said Mark Kavanaugh, KBR president, defense, intel and space.

https://www.yahoo.com/news/articles/kbr-secures-nasa-contract-worth-212031236.html

Little-Known Gut Nutrient Is Emerging Player in Cancer Fight

 An under-the-radar micronutrient is having a moment.

Queuosine — just call it “Q” — is a molecule that humans can only get from foods and gut bacteria. It’s has been known to microbiologists for decades, who know it plays a role in protein synthesis — as well as cancer growth, brain health, and inflammation. Yet, it hasn’t been clear how Q moves from the gut into cells throughout the body. Now the curtain has been pulled back.

The authors of a study published in Proceedings of the National Academy of Sciences (PNAS) have pinpointed a gene (SLC35F2) that helps transport Q to cells. The researchers say the new finding could help scientists figure out how to use the micronutrient to fight disease.

“It’s 70 years ago now that Q was discovered,” said study author Vincent P. Kelly, PhD, Professor of Biochemistry in the School of Biochemistry and Immunology, Trinity Biomedical Sciences Institute, Trinity College Dublin, Dublin, Ireland. “What’s exciting about this study is the fact that we never understood how we actually took that molecule from bacteria in our body and transported it into our cells, and this explains how we do it.”

Q: A Brief Primer

The PNAS study looked at both queuine (q), a modified nucleobase, and its nucleoside Q. A quick refresher: A nucleobase is a nitrogen-containing molecule that is one of the building blocks of DNA and RNA. And a nucleoside is a molecule made of sugar (either ribose or deoxyribose) plus a nitrogenous base (purine or pyrimidine) — also a building block of DNA. 

All of the cells in the human body are eukaryotes — they have a nucleus — and they rely on the micronutrients Q and q, which lurk in the human gut. They come from gut bacteria or a person’s diet (most commonly meat, eggs, dairy, fruits and vegetables, and fermented foods), said Kelly.

Prior studies had given hints that cellular uptake of Q and q is mediated by a selective transporter, but Kelly said that this transporter’s identity “remained elusive” until now.

“Almost all eukaryotes take the Q molecule and incorporate it into the transfer RNA (tRNA) in the body,” said Kelly. “tRNA is critical for making protein. It’s essential — essential for everything,” he said, pointing out that the average adult human is composed of about 12 kilograms (26 pounds) of protein.

How does Q get into gut bacteria and the food we eat? The Q molecule is more or less everywhere, Kelly said. “It’s in the oceans, it’s in the soil. Plants, which are eukaryotic, take it from the soil. And yet, very little is known about it. I’m surprised more people aren’t knowledgeable about it,” he said, especially considering public interest over the years in health-oriented micronutrients like vitamins and “macros” like carbohydrates, fats, and proteins.

What They Found, What It Means

Collaborating with researchers from Germany, Northern Ireland, the United States, and his own colleagues in Ireland, Kelly said they used a cross-species bioinformatic search and genetic validation — research techniques that enable scientists to analyze vast amounts of genomic data from across different species — to determine that Q and q are “salvaged” from the gut by SLC35F2 and ferried to different tissues throughout the body. 

“There’s a whole biology built around this micronutrient,” said Kelly.

Cracking the identity of the transporter of Q and q opens up opportunities for important research, Kelly said. It will lead to a deeper understanding of how intracellular levels of both micronutrients are regulated and how their deficiency is associated with diseases.

The study findings “represent an important leap in our understanding of queuosine biology. Queuosine is a unique tRNA modification to its precursor, queuine, which is not synthesized de novo in mammalian cells,” said Sherif Rashad, MD, PhD, associate professor in the Graduate School of Biomedical Engineering and the Graduate School of Medicine at Tohoku University in Sendai, Japan.

Rashad said scientists’ understanding of how q is imported into cells was “virtually nonexistent” until now and that the authors of the PNAS study used “an elegant but grounded approach” to identify the first q importer. The finding “paves the way for new discoveries in the many fields at the crossroads of queuosine biology,” he said.

ZdenÄ›k Paris, PhD, Head of Laboratory, in the Laboratory of RNA Biology of Protists, at the Institute of Parasitology in Ceske Budejovice, Czech Republic, agreed. “This study advances the field of queuosine research by identifying the primary transporter and establishing a direct link between the function of SLC35F2, intracellular queuosine levels, and vital cellular processes, which can explain how a deficiency of Q and/or its free base, queuine (q), contributes to various conditions, including neurological disorders and cancer.”

Paris said, “Prior to this study, no specific transporters for the intracellular uptake of Q or q had been identified in any eukaryote.” He said the research is “high-quality.” He pointed out that the researchers also demonstrated that SLC35F2 is the sole high-affinity plasma membrane transporter for the Q nucleoside and the primary high-affinity transporter for the nucleobase q in human cells. 

“Its high expression in the human alimentary canal strongly suggests a critical role in Q/q uptake from the gut during digestion,” he said. “This reveals how these micronutrients, which are synthesized exclusively by bacteria, are salvaged from the gut microbiome and/or diet and delivered to various body tissues. Based on the obtained data, the authors propose a model in which Q is transported from the gut to the liver by SLC35F2. There, QNG1 cleaves Q to release the q base, which enters the serum for wider distribution.”

The Cancer Connection

Paris said that SLC35F2 was characterized as an oncogene in previous research and is known to contribute to the progression of various cancers through its overexpression, including non-small cell lung cancer, papillary thyroid cancer, and bladder cancer. 

Paris added that SLC35F2’s role in Q and q transport provides a significant mechanistic explanation for its oncogenic activity. “High SLC35F2 expression is an unfavorable prognostic factor for patient survival in multiple cancers. SLC35F2 overexpression increases cellular Q/q levels, promoting higher Q34 modification of tRNAs. Consequently, Q modification may offer malignant cells a selective advantage through codon-biased translation,” he said.

Additionally, the study identified SLC35F2 (or its homologs) as the unique Q/q transporter in the yeast Schizosaccharomyces pombe and the human parasite Trypanosoma brucei, Paris said. “While the physiological importance of Q-tRNA varies by species — for example, loss of Qtp1 does not affect growth in S pombe or T brucei — this comparative analysis strengthens the evidence for SLC35F2’s role in humans and reveals its conserved function in eukaryotes that salvage Q and q.”

He said, “In essence, the study provides the missing link in the queuine salvage pathway, significantly advancing our understanding of how this essential micronutrient is acquired, distributed, and regulated, and its profound impact on health and disease, particularly in the context of cancer.”

https://www.medscape.com/viewarticle/little-known-gut-nutrient-emerging-player-cancer-fight-2025a1000ler

Trump Ensures US Pharma Supply Chain Resilience, Filling Strategic Active Pharma Ingredients Reserve

 BOLSTERING PHARMACEUTICAL SECURITY: Today, President Donald J. Trump signed an Executive Order to fill the Strategic Active Pharmaceutical Ingredients Reserve (SAPIR) with critical drug components, ensuring a resilient domestic supply chain for essential medicines.

  • The Order directs the Office of the Assistant Secretary for Preparedness and Response (ASPR), within the Department of Health and Human Services, to develop a list of approximately 26 critical drugs vital to national health and security, and ready the SAPIR repository to receive and maintain the Active Pharmaceutical Ingredients (APIs) used to make these critical drugs.
  • The Order charges the ASPR with obtaining a 6-month supply of these critical APIs, with a preference for obtaining domestically-manufactured APIs if possible, and placing them in the SAPIR.
  • It further instructs the ASPR to update the 2022 list of 86 essential medicines and propose a plan to obtain and store a 6-month API supply for these drugs.
  • ASPR shall further develop a proposal for opening a second SAPIR repository to further enhance pharmaceutical supply chain resilience.

ADDRESSING SUPPLY CHAIN VULNERABILITIES: Restoring capacity for domestic production of essential pharmaceutical products is essential to safeguarding national health and security against global supply chain disruptions.

  • Only about 10% of APIs for U.S. prescription drugs are manufactured domestically, leaving the Nation vulnerable to foreign supply chain disruptions.
  • The Biden Administration failed to advance domestic production or fill the SAPIR, despite spending billions on supply chain initiatives.
  • Overreliance on foreign, sometimes adversarial, nations for Key Starting Materials (the materials used to make APIs) and APIs risks shortages of essential medicines.
  • Stockpiling APIs, which are lower-cost and have longer shelf lives, strengthens the Nation’s ability to ensure access to critical drugs during emergencies.

RESTORING AMERICAN SELF-RELIANCE: President Trump has consistently prioritized policies to secure America’s pharmaceutical independence and ensure access to affordable, domestically produced drugs.

  • In 2020, President Trump signed an Executive Order directing his Administration to increase domestic procurement of Essential Medicines, Medical Countermeasures, and Critical Inputs, as well as identify supply chain vulnerabilities.  
  • In 2020, President Trump created a SAPIR to stockpile APIs, laying the foundation for pharmaceutical resilience.
  • In May 2025, President Trump signed an Executive Order to remove regulatory barriers and facilitate the restoration of a robust domestic manufacturing base for prescription drugs, including key ingredients and materials necessary to manufacture prescription drugs.
  • In May 2025, President Trump signed an Executive Order implementing most-favored-nation drug pricing to lower the prices Americans pay, and later sent letters to 17 pharmaceutical companies to encourage competitive pricing and domestic production.