Dermira, Inc.

Dive Brief:Eli Lilly inked another deal in the anti-inflammatory space, agreeing to pay CSL Ltd. $100 million to license a monoclonal antibody that targets interleukin-6 (IL-6).Under the agreement announced Wednesday, CSL will retain rights to develop the drug, clazakizumab, to prevent cardiovascular complications in patients with end-stage kidney disease. The Australian company is currently testing the drug for that use in a Phase 3 trial.Indianapolis-based Lilly will develop the medicine for other indications. As part of the deal, CSL is eligible for royalties as well as payments for reaching certain clinical, regulatory and commercial milestones.Dive Insight:Flush with cash from its best-selling obesity and diabetes drug franchise, Lilly has actively looked outside to beef up its pipeline in recent years. Already this year, the company has inked agreements to buy the biotechnology startup Orna Therapeutics for as much as $2.4 billion and Ventyx Biosciences for $1.2 billion to gain a drug that may treat a variety of immunological conditions.Those deals followed the $3 billion buyout of Morphic Therapeutics in 2024 and a $1.1 billion purchase of Dermira in 2020. The Dermira takeover gave Lilly a different interleukin inhibitor, one that targets IL-13. Lilly now sells the medication as Ebglyss to treat eczema.Clazakizumab was originally developed by Vitaeris, which CSL acquired in 2020. Its designed to stop the overproduction of the cytokine IL-6 to reduce inflammation and the progression of a range of diseases. CSLs development of the drug included a study to see if it could help prevent rejection and organ failure in kidney transplant patients, Fierce Biotech reported earlier. That trial ended early for lack of efficacy.There is an established track record for medicines that target IL-6, however. Roches Genentech sells the IL-6 receptor antagonist Actemra for a range of inflammatory conditions, including rheumatoid arthritis and a form of interstitial lung disease. Sanofi and Regeneron also have an IL-6 drug called Kevzara that originally won U.S. approval in 2017 to treat rheumatoid arthritis. '

More biotech IPOs have occurred during the government shutdown than during a seven-month industry dry spell from February to September. On Thursday, inflammatory disease biotech Evommune raised $150 million in its initial public offering. Its shares $EVMN closed up 26% in their first day of trading on the NYSE. Evommune followed the precedent set last month by MapLight Therapeutics, which went public with a $227 million IPO — also during the government shutdown. Prior to those two, LB Pharmaceuticals was the only other major biotech IPO since February. The shutdown has affected the SEC, which oversees stock offerings, and was an “extra challenge” to the IPO process, Evommune CEO Luis Peña said in a phone interview with Endpoints News on Thursday. But the Palo Alto, CA startup moved forward, selling 9.37 million shares at $16 apiece in the offering because it felt they had the right pieces in place, he said. That includes two experimental medicines in Phase 2, strong momentum with multiple clinical catalysts expected next year, and a committed group of investors and management. The biotech listed on the NYSE, while many other biotech companies pick the Nasdaq. “NYSE has been really hoping to get earlier-stage biotechs into their space,” Peña said. “Historically you had to have revenue coming in, but they’re very excited about the prospect of early-stage biotech, and they’ve been very amenable and a good partner for us.” Evommune is in Phase 2 with a former Dermira asset now known as EVO756. Peña was Dermira’s chief development officer when Eli Lilly acquired the biotech. Evommune is testing the oral small molecule for chronic spontaneous urticaria (hives) and atopic dermatitis. The experimental medicine is an antagonist of MRGPRX2. The IPO will help get that drug into Phase 3, Peña said. The company is also in Phase 2 with a long-acting fusion protein called EVO301. The IL-18-directed drug is being tested for atopic dermatitis and ulcerative colitis. Two preclinical assets are also making progress, the CEO said. Prior to the IPO, Evommune’s main backers were Pivotal bioVenture (16%), LSP (16%) and RA Capital (10%). They took part in the company’s $115 million Series C last year, which came after the startup axed development of an IRAK4 inhibitor.

The autoimmune disease biotech Evommune said it hopes to raise about $150 million in an IPO that’s expected to begin trading in the coming week. The company said it plans to sell about 9.4 million shares at between $15 and $17 a share, which would raise about $140 million to $160 million. It will trade under the ticker $EVMN . Because of the US government shutdown, trading will start by Nov. 5, Evommune said, under a provision that allows companies to move forward on capital raises even if the SEC is not operating normally. If the government reopens, that date could change. Biotech IPOs have begun to tick up again, as companies watch the rising stock market and increased M&A activity, and as private investors seek exits after a multiyear downturn that held back returns on venture dollars. Last month, LB Pharmaceuticals raised $285 million in an IPO, and MapLight raised about $260 million in its IPO that began trading Monday. Palo Alto-based Evommune has two experimental medicines in Phase 2 trials across a variety of autoimmune conditions. It’s led by CEO Luis Peña, who was chief development officer at Dermira when Eli Lilly acquired it for $1.1 billion in 2020. Peña immediately started Evommune after that experience and brought with him the license to some Dermira assets, including the company’s lead program, EVO756. The oral small molecule is an antagonist of MRGPRX2 and is in mid-stage testing for chronic spontaneous urticaria (hives) and atopic dermatitis. Evommune’s second asset, EVO301, is in testing for atopic dermatitis and ulcerative colitis. That asset is an IL-18-directed long-acting fusion protein.