Corus Pharma, Inc.

More layoffs are hitting Gilead’s cell therapy wing, including the closure of a Philadelphia office. The company confirmed to Endpoints News that the office acquired in its Tmunity purchase is being shut down, with some employees expected to be offered jobs in Santa Monica or Foster City, CA. A spokesperson also confirmed Gilead is closing its Seattle offices, which it acquired with the takeover of Corus Pharma in 2006. Those reductions are expected to affect 72 people, according to a government notice. The changes are “part of our efforts to align resources with our long-term strategic goals. This also includes moving some teams to different locations,” said a spokesperson. “Some employees can work remotely from Seattle, apply for another position within the company, or severance and job placement services will be provided.” It wasn’t immediately clear how many total job cuts are being made, and the spokesperson declined to specify. Gilead’s Kite unit, where the cell therapy operations sit, also plans to post about 120 new jobs as part of the changes, according to a source familiar with the decision. It’s not the first time the drugmaker has made reductions at Kite, which Gilead acquired in 2017 for $11.9 billion to bring aboard its CAR-T therapy for cancer. A year ago, Kite confirmed that layoffs were hitting 7% of its employees , or roughly 300 people, though also made a handful of new hires. The changes were revealed to employees at a town hall Thursday, and Endpoints reviewed a slide from the presentation. Though Gilead’s recent third-quarter earnings beat expectations, revenue from the two approved cell therapies was flat compared to the same period in 2023, and down 7% compared to the previous quarter. The company attributed that in part to increasing competition in the US for products “both in- and out-of-class,” which it expects to continue in 2025. Gilead has tried to expand access to its cell therapies outside of large research hospitals, but it’s been a slow climb. In its earnings report earlier this month, Chief Commercial Officer Johanna Mercier said that community partners have highlighted the accreditation process as a barrier to getting national payer reimbursement. Still, the company increased its revenue guidance by $150 million at the midpoint as part of the earnings update, which included the “evolving competition in our Cell Therapy business,” according to CFO Andrew Dickinson.

Plus, news about Allogene, Telix, Cullgen, Pulmatrix, Gilead, Innocoll, Durect and Sensei: Zai Lab’s $200M offering: The Shanghai-based drugmaker is selling shares the same week as announcing revenue growth of 47% year-over-year. It also said it plans to submit the schizophrenia drug KarXT for approval in China “early” next year. The FDA in September approved the medicine, owned by Bristol Myers Squibb. — Kyle LaHucik Kronos Bio to seek “strategic alternatives”: The company made the decision after looking at the data for a CDK9 inhibitor called istisociclib and deeming “the benefit-risk profile” as not warranting additional development. Istisociclib was designed to treat platinum-resistant high-grade serous ovarian cancer. Kronos had $124.9 million in cash, cash equivalents and investments as of the end of September. — Max Gelman Allogene halts enrollment in Phase 1 leukemia trial: The company was investigating cemacabtagene in patients with relapsed or refractory chronic lymphocytic leukemia. In its latest securities filing, Allogene blamed slow enrollment and “the emergence of new alternative treatment options” for its decision to halt enrollment altogether. The company added that it would be reallocating resources from the trial to other programs. Its shares $ALLO were down about 6% on Thursday morning. — Katherine Lewin Telix’s Nasdaq debut : The Australian radiopharma started trading on the Nasdaq as $TLX on Thursday. The company didn’t sell any new shares as part of the listing, though. It had pulled its Nasdaq IPO plans in the 11th hour in June. — Kyle LaHucik Cullgen to take Pulmatrix’s spot: Cullgen and the Nasdaq-listed Pulmatrix will reverse merge in a deal expected to close by the end of March. Cullgen makes protein degraders and degrader-antibody conjugates, or DACs, that are in Phase 1. Another DAC maker, Orum Therapeutics, is looking to go public , but in South Korea. Pre-merger Cullgen stockholders will get about 96.4% of the combined company. — Kyle LaHucik Gilead lays off 72 workers in Seattle: The cuts were attributed to a site closure and are set to begin in January, according to a WARN notice in Washington state. A spokesperson for Gilead did not immediately respond to a request for comment. The pharma gained a foothold in the Seattle area after acquiring Corus Pharma for $365 million in 2006. — Max Bayer Innocoll Pharmaceuticals ends licensing pact with Durect: Durect said the termination is effective in May. Innocoll had snagged US commercial rights to Durect’s non-opioid analgesic in December 2021. — Max Bayer Sensei to lay off 46% of staff, close research site in Rockville, MD: The cuts will extend Sensei’s runway into 2026, the company said. They will also help Sensei “focus resources on advancing the clinical development of SNS-101,” which the company is developing both as a monotherapy and a combination in advanced solid tumors. It had 27 employees as of Feb. 23. Its stock $SNSE fell about 11% on Thursday morning. — Max Gelman

-- New Financing of $24 Million Fully Funds the Phase 2 Clinical Program for Lead Candidate VLX-1005 -- Company Prepares to Evaluate VLX-1005 in Heparin-Induced Thrombocytopenia (HIT) FREDERICK, Md., June 20, 2023 (GLOBE NEWSWIRE) -- Veralox Therapeutics, a clinical-stage biotechnology company developing a new class of therapies targeting the 12-lipoxygenase (12-LOX) pathway to address some of medicine’s most persistent and serious immune-mediated diseases, today announced the appointment of Jonathan Mow as the company’s new chief executive officer. Mr. Mow’s appointment comes as Veralox secured $24 million in funding to advance VLX-1005 through a Phase 2a proof-of-concept study evaluating its impact on heparin-induced thromobcytopenia (HIT), a life-threatening rare disease caused by an aberrant immune response to heparin exposure. The investment round included new investors Pappas Capital and NYBC Ventures and existing investors Hatteras Venture Partners, Sanofi Ventures, JDRF T1D Fund and Genesys Capital, amongst others. In conjunction with the financing, the company welcomes Peter Young of Pappas Capital as a director and Meg Wood of NYBC Ventures as an observer. “VLX-1005 has great promise to revolutionize the treatment of HIT and other immune-mediated diseases,” Mr. Young said. “I am thrilled to join the board at such an exciting time, and to be working with a leader of Jonathan’s caliber to move into later stages of clinical development.” “This is an exciting time for Veralox as we head into our proof-of-concept Phase 2 study with VLX-1005 for HIT, a serious complication subsequent to heparin exposure that is accompanied by significant morbidity and mortality,” Mr. Mow said. “Our novel approach with 12-LOX inhibitors has great potential in this and other diseases and I would like to thank our investors for their financial support of our important mission and giving me the opportunity to lead this world-class effort and team.” Mr. Mow brings more than 25 years of accomplishments in biotechnology management to Veralox, most recently serving as CEO of PhaseBio Pharmaceuticals. At PhaseBio, he led the company’s scientific and business transformations, guiding the company from early-stage research to Phase 3 development, and through a successful initial public offering in 2018. Earlier in his career, Mr. Mow served as vice president, business development for Amylin Pharmaceuticals until its sale to Bristol-Myers Squibb in 2012; was co-founder and vice president, commercial and business development of Corus Pharma, Inc. until its acquisition by Gilead Sciences in 2006; and headed business development for PathoGenesis Corporation until its acquisition by Chiron Corporation in 2000. Mr. Mow has also held positions in marketing, marketing research and sales at Bristol-Myers Squibb, Wyeth/Lederle International and Syntex Laboratories. He holds a B.S. in mechanical engineering from University of California at Berkeley and M.B.A. from Carnegie Mellon University’s Tepper School of Business. About Veralox TherapeuticsVeralox Therapeutics Inc. is the clinical leader in developing first-in-class therapeutics targeting 12-lipoxygenase, pioneering a new class of therapies that treat the underlying pathologies of serious immune-inflammatory diseases with unmet medical needs. The company’s lead candidate, VLX-1005, is in development for the treatment of patients with heparin-induced thrombocytopenia (HIT). VLX-1005 has orphan drug designation in the United States and has been awarded Fast Track Designation by the U.S. Food and Drug Administration. Second generation therapeutic products are under development for type 1 diabetes and other immune-mediated and inflammatory diseases. For more information, visit our website: https://veralox.com/. Media Contact: Lisa GuitermanScient PR202-330-3431Lisa.guiterman@gmail.com