After big layoff, Graceway wins FDA OK; Malaysian CRO rounds up Series B;

 @FierceBiotech: VCs eager to invest in obesity-focused startups. Article | Follow @FierceBiotech

 @JohnCFierce: In a frank assessment, Antisoma CEO suggests the 404 cancer program is kaput. Novartis doing a review, unlikely to pay out any new cash. | Follow @JohnCFierce

> Graceway Pharmaceuticals has won FDA approval of Zyclara, a cream that can be used to treat the skin condition actinic keratoses. Graceway laid off 130 of 323 workers last week as its revenue from Aldara plunged following the launch of a similar generic. Graceway release

> Two small Houston biotechs--Castle Biosciences and Eureka Genomics--announced new financing rounds. Story

> Five Prime Therapeutics is returning to South San Francisco, taking 70,000 square feet. Report

> The Malaysian-based Contract Research Organization Chakra Biotech has completed a MYR18.2m Series B funding round. Chakra Biotech release

> Sweden's Karo Bio has appointed Fredrik Lindgren as new president and CEO. Fredrik Lindgren succeeds Per Olof Wallström who has resigned and is leaving the company. Karo Bio release

Xconomy covers Somaxon's uphill climb marketing a new sleeping therapy in a crowded market. Report

> Canada's Dragon Pharmaceutical has struck a deal to merge with Chief Respect Limited, a new venture in Hong Kong set up by Dragon Pharma's chairman. Dragon release

> The Multiple Myeloma Research Foundation awarded MannKind a $1 million grant through its 2007 Biotech Investment Award program. Mannkind release

And Finally... Chinese scientists have bred a genetically modified cow that produces milk rich in Omega 3 fatty acid. Story