London IPO market sizzles; MorphoSys ramps up R&D; Drug in Hyperion fraud spat fails PhIII

Welcome to the latest edition of our weekly EuroBiotech Report. While investors in the U.S. were enjoying the Labor Day holiday, their peers in Europe were digging into the prospects of the latest biotechs to swing for IPOs in London. Finland's Faron Pharmaceuticals and the United Kingdom's Shield Therapeutics are both gunning for London IPOs, with the latter's £110 million ($169 million) fundraising goal setting the exchange up for a big-ticket end to 2015. London-based biotech ReViral pulled off a funding coup of its own, snagging $21 million from Edmond de Rothschild Investment Partners and OrbiMed to move its respiratory syncytial virus (RSV) drug into the clinic. MorphoSys (ETR:MOR) had big numbers on its mind this week, too. The German biotech unveiled plans to escalate its R&D outlay to support a slate of clinical trials. Numbers surrounding Clal Biotechnology (TLV:CBI) spent part of the week going quickly in the opposite direction. The Israeli company revealed that the Phase III trial of the diabetes drug at the center of its fraud dispute with Hyperion Therapeutics flopped, sending its share price down 20%. BioGaia (STO:BIOG-B) invested SEK 35 million ($4 million) in its subsidiary Infant Bacterial Therapeutics to keep the unit ticking over while it figures out how to finance its planned clinical trials. And more. Nick Taylor (email | Twitter)

1. Shield and Faron swing for London IPOs as market heats up

Faron Pharmaceuticals and Shield Therapeutics have joined a small but growing list of biotechs to pick London over New York for their IPO. Both companies are looking to tap investors for money to push candidates through late-phase trials and on to the market.

2. MorphoSys to ramp up R&D expenditure to support slate of clinical trials

MorphoSys is set to ratchet up investment in R&D as it seeks to push candidates through late-phase trials and win the approvals that will allow it to evolve into a fully integrated biopharma company. The additional funds will support the startup of 5 new trials over the next 15 months.

3. Clal Biotech tanks after diabetes drug in Hyperion controversy fails PhIII

After 12 months of fraud accusations, legal threats and stock price swings, Clal Biotechnology and Hyperion Therapeutics now have data from the heavily scrutinized Phase III trial of the diabetes drug at the center of their spat. The trial was a flop, Globes reports.

4. Big-name backers give ReViral $21M to move RSV drug into the clinic

Edmond de Rothschild Investment Partners and OrbiMed have co-led a $21 million (€18.8 million) Series A round in ReViral, a London-based biotech that is edging a drug against respiratory syncytial virus (RSV) toward the clinic.

5. BioGaia pumps cash into orphan drug subsidiary ahead of possible spinout

BioGaia has funnelled SEK 35 million ($4 million) into the bank account of its subsidiary Infant Bacterial Therapeutics to tide the unit over while it considers how to finance clinical trials of an orphan drug. The next move could be a separate listing of the subsidiary.

And more articles of note >>

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