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FDA official’s comments spark Aurinia sell-off; Halozyme buys a biotech

Today, a brief rundown of news involving Aurinia Pharmaceuticals and Halozyme Therapeutics, as well as updates from Novartis, IO Biotech and Enanta Pharmaceuticals that you may have missed. Aurinia Pharmaceuticals shares fell by double digits on Monday after G

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Today, a brief rundown of news involving Aurinia Pharmaceuticals and Halozyme Therapeutics, as well as updates from Novartis, IO Biotech and Enanta Pharmaceuticals that you may have missed. Aurinia Pharmaceuticals shares fell by double digits on Monday after George Tidmarsh , the head of one of the Food and Drug Administration’s main drug review offices , posted on LinkedIn that its lupus nephritis drug, sold as Lupkynis, has “significant toxicity” and hasn’t proven a “direct clinical benefit to patients.” Tidmarsh deleted that post and, shortly thereafter, clarified that his comments didn’t “reflect the views of FDA or HHS.” Still, the incident prompted Aurinia to respond with a statement standing behind Lupkynis’ “favorable benefit/risk profile.” Analysts rushed to its defense, too. Given the drug has a full U.S. approval, “we do not think there is any action FDA can take at this point,” noted Jefferies analyst Maury Raycroft. — Ben Fidler Halozyme Therapeutics will acquire fellow drug delivery specialist Elektrofi in a deal worth as much as $900 million . The buyout announced Wednesday hands Halozyme a type of microparticle technology that can help deliver biologic medicines through under-the-skin injections. The technology "substantially expands the scope of therapeutics that can be delivered subcutaneously,” Halozyme said. Halozyme is paying $750 million up front and could add another $150 million in milestone payments tied to certain product approvals. — Ben Fidler The FDA on Tuesday approved Novartis’ Rhapsido for people with a form of persistent hives known as chronic spontaneous urticaria. The clearance makes Rhapdiso, formerly known as remibrutinib , the first oral targeted therapy for the condition. Rhapdiso is part of a newer class of BTK inhibitors designed to treat autoimmune diseases rather than cancer. Sanofi won clearance of a similar type of therapy, Wayrilz , for immune thrombocytopenia in late August. — Ben Fidler IO Biotech will lay off half of its staff after being told by U.S. regulators it will need to run a new trial to support approval of its experimental skin cancer vaccine, Cylembio. The company had been hoping that a narrowly failed Phase 3 trial , combined with other supportive analyses, might be enough to convince the FDA to consider an approval. On Monday, though, it said the agency has advised against submitting an application. IO Biotech will work with the FDA to design a new trial, but in the meantime is restructuring to conserve cash, as it only has enough money to operate through the first quarter of 2026. — Delilah Alvarado Enanta Pharmaceuticals said on Monday that its experimental respiratory syncytial virus treatment demonstrated a “clinically meaningful benefit” in Phase 2 testing despite missing the trial’s main objective. The drug, dubbed zelicapavir , didn’t more quickly resolve, to “mild,” a specific group of respiratory symptoms. Zelicapavir did, however, have an apparent impact on a broader set of symptoms in adults at high-risk of disease complications, supporting Phase 3 testing with a different study design. Shares nearly doubled as investors focused on the “totality of evidence” supporting zelicapavir’s potential, Leerink Partners’ Roanna Ruiz wrote in a Monday note to clients. — Delilah Alvarado Eye drug developer Kala Bio will explore “strategic options” after its lead candidate for a type of persistent corneal defect failed a mid-stage trial. In a Monday statement, Kala said that KPI-012 met neither its primary nor secondary goals, sending shares down more than 90% and leading the company to scrap development. Kala will also lay off 19 employees , or a little more than half of its staff, to preserve cash as it evaluates its next steps. Kala had approximately $32 million in cash and cash equivalents as of June 30, according to a regulatory filing. — Gwendolyn Wu

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01What the Artificial Neuron Cannot Do

Hersam’s next goal is a small circuit — perhaps 10 artificial neurons — where each one fires differently, and together they accomplish what would require thousands of conventional transistors. “ Silicon achieves complexity by having billions of identical devices,” Hersam said. “The brain is the opposite. It’s heterogeneous. The complexity is at the device level.” But Gaudet sees a gap no circuit design can yet fill: Biological neurons grow new connections and prune old ones, strengthening pathways that are used and weakening those that aren’t. Hersam’s lab’s printed neurons — or any other neuromorphic technology that mimics neuronal dynamics — can’t achieve that level of complexity yet. Brown is careful about the distance remaining between these printed neurons and the real thing. “Neurons are just so flexible,” he said. “They can totally change what they’re doing based on whether they’ve learned something and based on your emotional state. There’s a lot of hidden mysteries.” Sangwan suspects the device has more to reveal. “It’s a nonlinear dynamical system,” he said. “We don’t fully know how many different variables you need to explain it. It’s just the beginning.” Hersam, Sangwan, Brown, Holla, and Gaudet reported having no relevant financial disclosures. Disclosure information for study authors is available in the original study publication.

Source: www.medscape.com ↗
02Why Muscle Cells Might Do Some Heavy Lifting

Brown was studying gene therapy in the 1990s when he designed a technology to turn mRNA expression on or off in different cells. For the new mouse study, published in Nature Biotechnology , he adapted the technology to turn off mRNA expression in dendritic cells, muscle cells, or liver cells. The researchers then vaccinated the mice with each version, delivering the vaccines both intravenously and intramuscularly. “The results were pretty stunning,” Brown said. When mRNA expression was turned off in muscle cells, T-cell response went down, suggesting muscle cells play a role in immunity. When expression was turned off in liver cells, T-cell expression tripled — indicating liver cells dampen immunity. Turning off expression in dendritic cells had no effect on T-cell activation, though it did reduce the number of killer T cells by as much as half. (Interestingly, no such reduction occurred when the antigen was SARS-CoV-2 spike. Brown is now investigating why different antigens had varying effects.) Knowing all this is crucial for designing effective mRNA vaccines and therapies. That’s because different mRNA therapies require different strategies. Cancer vaccines must boost tumor-fighting killer (CD8+) T cells. For genetic disease treatments, scientists want to avoid triggering the immune system to prevent killing the very cells the mRNA is meant to modify. “Understanding the immunology is extremely important for this class of drug,” Brown said. The finding doesn’t mean dendritic cells aren’t important for mRNA vaccines to work. “It just means that the mRNA doesn’t have to get into those cells to induce an immune response,” Brown said. Instead, the antigen can be transferred to those dendritic cells.

Source: www.medscape.com ↗
03What Comes Next

With data expected in the fourth quarter of 2026, we are prioritizing histology alongside patient-reported outcomes using the Celiac Disease Symptom Diary, one of only two instruments developed in line with U.S. Food and Drug Administration (FDA) guidance, to capture changes in symptoms such as abdominal pain and nausea. Ultimately, the broader aim is to give gastroenterologists and patients a therapeutic option for a disease that has long been managed without one. The future of drug development will not be defined by statistical significance alone, but by whether new therapies also improve the daily burden of living with celiac disease. “The first therapy to cross the line could change the field,” Geller concluded. “It would help establish celiac as a serious medical condition with options beyond a restrictive diet and open the door for what comes next.” Dr. Paul Lizzul is chief medical officer at First Tracks Biotherapeutics, a clinical ‑ stage biotechnology company advancing antibody therapeutics that modulate immune pathways implicated in autoimmune and inflammatory diseases. Marilyn Geller serves as an advisor to First Tracks Bio. Footnotes Abadie V, Jabri B. IL-15: a central regulator of celiac disease immunopathology. Immunol Rev . 2014;260(1):221-234. https://doi.org/10.1111/imr.12191. Yokoyama S, Watanabe N, Sato N, et al. Antibody-mediated blockade of IL-15 reverses the autoimmune intestinal damage in transgenic mice that overexpress IL-15 in enterocytes. Proc Natl Acad Sci U S A . 2009;106(37):15849-15854. https://doi/full/10.1073/pnas.0908834106. Anthony S, Schluns KS. Emerging roles for IL-15 in the activation and function of T-cells during immune stimulation. Research and Reports in Biology . 2015;6:25-37. https://doi.org/10.2147/RRB.S57685.

Source: www.biopharmadive.com ↗
04Lifestyle Matters: How do environmental and lifestyle factors influence Alzheimer’s disease?

Dr. Harrison and Finnish neuroscientist Dr. Miia Kivipelto explore the complex interplay between genetics and lifestyle in Alzheimer's development. Learn how the groundbreaking FINGER study demonstrates potential prevention strategies, and discover the latest evidence on how environmental factors, diet, and chronic conditions influence Alzheimer's risk.

Source: www.biopharmadive.com ↗
05China: Threat or opportunity?

One of the biggest biotech news stories of recent years is China’s continued rise as a biotech and life sciences powerhouse. China conducts a quarter of all clinical trials and drug development and has almost 1,500 new drugs in development.¹ Many China-based biotechs have benefitted from government funds, out-licencing deals with large pharmas and venture capital funding. However, policymakers in the US and EU have concerns about the possible threat to their region’s biosecurity and competitiveness as centres for health and life science research. Given China’s increased importance, ICON Biotech conducted the same biotech sector survey with 100 China-based biotech leaders. The results show that Chinese biotechs face many of the same challenges as biotechs located elsewhere. They share the same funding challenges and burdens associated with increasingly complex clinical trials and regulations.

Source: www.biopharmadive.com ↗
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Peptide Therapy Guide Editorial Team

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