Halozyme Abandons Evotec Acquisition, Neurogene Trial Faces Setback, Argenx Advances Myositis Program, and Kyowa Kirin Licenses Kura Oncology's Leukemia Drug

Key Insights

• Halozyme withdrew its $2.1 billion offer to acquire Evotec after the latter declined to engage in acquisition talks, despite Halozyme's repeated attempts to initiate discussions.
• A patient in Neurogene's Rett syndrome gene therapy trial died due to complications from a hyperinflammatory syndrome, a known risk associated with AAV-delivered gene therapies.
• Argenx is advancing its efgartigimod program into Phase 2/3 trials for myositis subtypes after positive Phase 2 results showing significant patient improvement compared to placebo.

Halozyme Therapeutics has abandoned its pursuit of Evotec, while Neurogene faces a setback in its Rett syndrome gene therapy trial. Argenx is moving forward with its myositis program, and Kyowa Kirin is licensing a leukemia drug from Kura Oncology.

Halozyme Withdraws Evotec Acquisition Bid

Halozyme Therapeutics announced its withdrawal of the proposal to acquire Evotec after the German company showed no interest in engaging in discussions. The deal was valued at approximately $2.1 billion. Halozyme CEO Helen Torley stated that despite multiple attempts to engage with Evotec leadership, their requests were rejected, making it evident that a deal was not feasible. Private equity firm Triton has also shown interest in Evotec, acquiring a 10% stake and exploring a potential buyout.

Neurogene Trial Halted After Patient Death

Neurogene reported the death of a patient participating in its gene therapy trial for Rett syndrome. The patient, who received a high dose of the therapy on November 5, experienced a hyperinflammatory syndrome, a rare but known risk associated with adeno-associated virus (AAV) delivered gene therapies. The FDA has allowed Neurogene to continue testing with a lower dose. The hyperinflammatory syndrome is associated with high systemic exposure to AAV.

Argenx Advances Efgartigimod in Myositis

Argenx is proceeding with plans to evaluate efgartigimod in various subtypes of myositis, a group of rare autoimmune diseases affecting muscles and organs. This decision follows positive efficacy and safety results from the Phase 2 portion of an ongoing Phase 2/3 study. Treatment with efgartigimod, marketed as Vyvgart for myasthenia gravis and other rare disorders, demonstrated significant patient improvement compared to placebo. Analysts estimate that this new indication could generate peak annual sales of at least $1 billion.

Kyowa Kirin Licenses Kura Oncology's Ziftomenib

Kyowa Kirin will pay Kura Oncology $330 million upfront for the rights to ziftomenib, an experimental oral leukemia drug currently in Phase 1 testing. Kura Oncology could receive up to an additional $420 million if ziftomenib reaches the market for relapsed or treatment-resistant acute myeloid leukemia (AML) expressing an NPM1 mutation. The agreement also grants Kyowa Kirin opt-in rights to ziftomenib for solid tumors. Kura will lead development and sales in the U.S., sharing profits with Kyowa Kirin, while Kyowa Kirin will handle these responsibilities outside the U.S. Ziftomenib inhibits menin, a protein crucial for the survival and reproduction of diseased leukemia cells.