SAN FRANCISCO and BOSTON, Dec. 16, 2025 (GLOBE NEWSWIRE) -- SandboxAQ and MapLight Therapeutics, Inc. (Nasdaq: MPLT) announced today that the companies have entered into a strategic collaboration to discover and develop potential first-in-class therapies targeting a novel G protein-coupled receptor (GPCR) for the treatment of central nervous system (CNS) disorders. Under the terms of the agreement, SandboxAQ received an upfront payment and will be eligible to receive additional preclinical, development, reg ...

SAN FRANCISCO and BOSTON, Dec. 16, 2025 (GLOBE NEWSWIRE) -- SandboxAQ and MapLight Therapeutics, Inc. (Nasdaq: MPLT) announced today that the companies have entered into a strategic collaboration to discover and develop potential first-in-class therapies targeting a novel G protein-coupled receptor (GPCR) for the treatment of central nervous system (CNS) disorders. Under the terms of the agreement, SandboxAQ received an upfront payment and will be eligible to receive additional preclinical, development, reg ...

Core Insights - Ginkgo Bioworks has partnered with Deep Origin on a 4.5-year project funded by ARPA-H to develop a computational platform for drug safety [1][4] - The collaboration, named PREDICTS, aims to enhance pharmacological research through digital integration and clinical trial simulation [1][4] Company Overview - Ginkgo Bioworks specializes in engineering biology and offers customizable R&D solutions, including protein engineering and nucleic acid design [6] - The company utilizes its 'Datapoints' platform to generate large, structured datasets for AI model training, focusing on drug safety and efficacy [2][4] Project Details - The PREDICTS project will leverage Ginkgo's high-throughput capabilities to create detailed models of cellular responses to drug treatments [3][4] - The initiative will include various readouts such as cell type-specific toxicity endpoints and DRUG-seq transcriptomics [2] Strategic Importance - This partnership highlights Ginkgo's commitment to interdisciplinary collaboration and its expertise in generating large datasets for drug development [4] - The collaboration is expected to push the boundaries of multi-omics data generation, transforming drug discovery processes [4]

Biotech M&A Activity - Merck announced the acquisition of Cidara Therapeutics for approximately $9.2 billion, primarily for its antiviral drug aimed at preventing flu infections in high-risk patients, currently in late-stage clinical trials [1] - This acquisition follows Merck's earlier $10 billion deal to acquire Verona Pharma for respiratory drugs, indicating a trend of significant investments in biotech [1] - The dollar volume of M&A in the biotech sector reached $129 billion through October 31, 2025, a 43% increase compared to all of 2024, despite a 26% decrease in the number of deals, highlighting a shift towards larger, market-ready assets [3] Recursion's Challenges - Recursion has not successfully brought any drugs to market since its founding, with its shares dropping 86% since its IPO in April 2021, resulting in a current market cap of $2.2 billion [4] - The company reported a revenue decline of one-third to $44 million from $65 million over the last 12 months, while losses surged nearly 90% to $716 million [4] - Incoming CEO Najat Khan aims to tackle the challenges of AI in drug development, acknowledging the high failure rate in the industry [5] Infant Formula Outbreak - A botulism outbreak linked to ByHeart's organic infant formula affected 23 babies across 13 states, leading to multiple hospitalizations and five lawsuits from parents [6] - ByHeart had previously shut down its Pennsylvania manufacturing plant due to safety violations and announced a nationwide recall of its infant formula [7] Profluent's AI Innovations - Profluent, a startup focused on using AI for protein design, raised $106 million in new venture funding, bringing its total investment to $150 million and approaching a valuation of $1 billion [12] - The company aims to revolutionize drug development and agriculture by making biology programmable, which could lead to significant breakthroughs in therapeutics and diagnostics [11]

Core Insights - The competition between Novo Nordisk and Pfizer for Metsera has intensified, with Novo making a $9 billion unsolicited bid, surpassing Pfizer's previous offer of $7.3 billion [2][4] - Legal actions have commenced, with Pfizer suing to block the deal and alleging anticompetitive behavior from Novo, which has since increased its bid to $10 billion [3][4] - Metsera's stock has surged by 40% since the announcement of the bidding war, reflecting the high stakes in the weight loss drug market [4][5] Company Developments - Metsera, a company focused on obesity and diabetes treatments, has no drugs on the market yet but has a promising pipeline, with potential peak sales exceeding $5 billion [5] - Investors Arch Venture Partners and Population Health Partners, who founded Metsera, stand to gain significantly from the ongoing bidding war [6] - Kimberly-Clark has agreed to acquire Kenvue for over $40 billion, creating a consumer health giant with a diverse portfolio [12][14] Market Context - The weight loss drug market is becoming increasingly competitive, with Pfizer lacking any weight loss drugs in its portfolio after abandoning a candidate due to safety concerns [4] - Kenvue faces litigation risks related to its products, including claims about acetaminophen and talc, which may impact its valuation and market performance [13][14] - The acquisition of Kenvue by Kimberly-Clark comes despite a 35% decline in Kenvue's shares since its spin-off from Johnson & Johnson [14]

Core Insights - The competition between Novo Nordisk and Pfizer for Metsera has intensified, with Novo making an unsolicited bid of up to $9 billion, surpassing Pfizer's previous bid of $7.3 billion [2] - A legal battle has emerged, with Pfizer suing to block the deal and alleging anticompetitive behavior from Novo, which has since increased its bid to $10 billion while Pfizer raised its offer to $8.1 billion [3] - Metsera's stock has surged by 40% since the bidding war began, reflecting the high stakes in the weight loss drug market, where Pfizer lacks any current offerings [4] Company Developments - Metsera, although not yet having any drugs on the market, has a promising pipeline with its lead candidate in phase 2 trials and seven additional drugs, potentially generating over $5 billion in peak sales [5] - Investors Arch Venture Partners and Population Health Partners, who founded Metsera, stand to gain significantly from the ongoing bidding war, holding a combined 37.7% stake in the company [6] Industry Trends - The weight loss drug market is becoming increasingly competitive, with major pharmaceutical companies vying for control as consumer demand rises [4] - Kimberly-Clark's acquisition of Kenvue for over $40 billion highlights the trend of consolidation in the consumer health sector, despite ongoing litigation risks associated with Kenvue's products [12][13] - Kenvue's stock has dropped approximately 35% since its spin-off from Johnson & Johnson, indicating market concerns over its litigation exposure and overall performance [14]

Financial Data and Key Metrics Changes - Group revenues for the first nine months of 2025 reached EUR 535.1 million, reflecting a 7% decline compared to the previous year [9][18] - DNPD revenues declined by 12% to EUR 391.9 million, while Just - Evotec Biologics revenues grew by 11% to EUR 143.2 million [10][19] - Adjusted group EBITDA was negative EUR 16.9 million, driven by weaker DNPD revenues and fixed cost base [21] - Year-to-date free cash flow improved by 14% compared to the same period last year [22] Business Line Data and Key Metrics Changes - DNPD business faced continued softness in the early drug discovery market, leading to a 12% revenue decline [10] - Just - Evotec Biologics business showed strong growth with revenues up 11% in the first nine months [19] - Non-Sandoz and non-DOD customer base grew by over 100% in the first nine months [14] Market Data and Key Metrics Changes - Venture capital funding for biotech remains unfavorable, impacting business development activities [10][15] - The early drug discovery market is still experiencing a temporary deprioritization, with funding levels below pre-pandemic levels [15] Company Strategy and Development Direction - The company is focused on better monetizing its technology leadership and has raised its cost reduction target to EUR 60 million for 2025 [12] - A transformational deal with Sandoz was signed, expected to unlock payments exceeding $650 million over the coming years [14][39] - The strategy includes pivoting towards an asset-light, higher-margin business model, leveraging technology partnerships [38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the midterm outlook despite current market challenges, with a targeted revenue of EUR 760 million to EUR 800 million for 2025 [45] - The company remains cautious about the early drug discovery market recovery, indicating that visibility into 2026 is limited [68] Other Important Information - The company anticipates up to four molecules from its partnered asset pipeline to enter phase two clinical studies in 2026 [13] - The total milestone potential of the asset pipeline is over EUR 16 billion, with significant royalties expected [34] Q&A Session Summary Question: What were Sandoz revenues in the first nine months? - Sandoz revenues accounted for over 50% of the overall year-to-date revenues [50] Question: How much of the EUR 30-50 million EBITDA guide is from the Sandoz deal? - There is a license recognition element from Sandoz included in the initial consideration, but it is not being split out at this stage [53] Question: What is the expected growth trajectory from 2025 to 2028? - The midterm outlook suggests 8-12% revenue CAGR with stronger potential for EBITDA margins than initially planned [55] Question: What is the current state of the early drug development market? - There is still uncertainty in the market, with more cautious spending and slower decision-making observed [77] Question: Are there geographic variations in market performance? - The US market showed less dynamism earlier in the year, while the European market has been more active recently [81]

Core Insights - Recursion has announced a leadership transition plan, effective January 1, 2026, with Chris Gibson transitioning to Chairman of the Board and Najat Khan appointed as the new CEO and President [1][2][4] Leadership Transition - The Board of Directors unanimously approved the transition, emphasizing continuity and collaboration for Recursion's future [1][2] - Chris Gibson has led the company for twelve years, transforming it into a pioneer in the TechBio sector, and will continue to provide guidance as Chairman [2][4] - Najat Khan, currently Chief R&D and Commercial Officer, has been recognized for her strategic insight and leadership, having worked closely with Gibson for the past 18 months [2][5] Najat Khan's Background - Dr. Najat Khan has a strong background in biopharma, with experience in integrating scientific discovery, data, and business strategy [3][6] - Prior to joining Recursion, she held significant roles at Johnson & Johnson, where she tripled pipeline value and advanced AI integration in R&D [6] - Khan holds a Ph.D. in Organic Chemistry and has certifications in AI/ML from MIT, showcasing her expertise in both science and technology [7] Recursion's Mission and Vision - Recursion aims to decode biology to radically improve patients' lives, leveraging its OS platform that combines biology, chemistry, and AI [8] - The company operates one of the largest proprietary biological and chemical datasets, utilizing advanced machine-learning algorithms for drug discovery [8] - Recursion's operational scale includes conducting millions of wet lab experiments weekly and managing one of the most powerful supercomputers globally [8]

Core Insights - Turbine has announced a collaboration with AstraZeneca to enhance antibody-drug conjugate (ADC) discovery through its AI-driven platform, aiming to improve efficiency and mechanistic understanding in the drug development process [1][2]. Company Overview - Turbine specializes in virtualizing biological experiments using AI, with a focus on accelerating drug discovery and enhancing clinical translatability. The company has developed virtual disease models that can predict drug responses, potentially reducing research timelines and late-stage clinical failures [4]. Collaboration Details - The partnership will utilize a lab-in-the-loop approach, allowing Turbine's platform to recommend a targeted subset of cell lines for testing and predict outcomes across thousands of in silico models using AstraZeneca's ADC datasets. This method aims to streamline the discovery process and improve the relevance of experimental results [2][3]. - Previous collaborations between Turbine and AstraZeneca have focused on understanding resistance mechanisms in hematological cancers and predicting combination therapy synergies [3]. Technological Impact - Turbine's platform enables the execution of billions of virtual experiments, which helps pharmaceutical companies identify promising therapeutic ideas more efficiently. This capability is expected to cut down on ineffective research and enhance decision-making across drug development pipelines [4].

Core Insights - Recursion Pharmaceuticals Inc. (NASDAQ:RXRX) stock is experiencing a significant surge without any specific news to justify the movement [1] - The company reported second-quarter revenue of $19.22 million, exceeding analyst estimates of $16.23 million, but reported a loss of 41 cents per share, which was worse than the expected loss of 34 cents per share [1] - The stock price increased by 17.21% to $6.12 during the publication time, reflecting strong investor interest in the company's innovative approaches [9] Financial Performance - Recursion's second-quarter revenue was $19.22 million, surpassing analyst expectations of $16.23 million [1] - The reported loss for the second quarter was 41 cents per share, which missed the analyst estimate of a loss of 34 cents per share [1] Strategic Developments - In June, the company streamlined its operating strategy and announced a workforce reduction of approximately 20%, extending its cash runway into the fourth quarter of 2027 [2] - The company is developing REC-3565, a MALT1 inhibitor designed to interfere with the growth of blood cancer cells, currently in Phase 1 trials [4][5] Market Context - Recursion Pharmaceuticals operates in the highly competitive biotechnology sector, with a market capitalization of $2.68 billion [9] - The stock has shown considerable volatility, with a 52-week range of $3.79 to $12.36, indicating fluctuating market sentiment influenced by advancements in drug discovery technologies [10]