Week of November 14, 2025

The Week at a Glance:

• Strong Earnings, Rising Volatility: Q3 earnings are outperforming expectations, but volatility is rising amid IT and Communications concerns, heavy AI capex pressures, sector rotation favoring healthcare, fading odds of a near-term Fed rate cut, and busy debt markets despite wider credit spreads

• The Longest Government Shutdown Ends: Broader equities inched downwards on Thursday after the news as investors anticipate delays in the release of key economic data, potentially impacting December rate cut decisions

• Biotech Markets Show Continued Strength: The NBI and NYSE Pharma indices rose 4.2% and 6.3%, respectively, supported by strong follow-on activity totaling $1.3B across 15 raises, along with two large M&A transactions

• Merck Bolsters Its Respiratory Portfolio: Merck announced a $9.2B acquisition of Cidara Therapeutics, a Company developing a differentiated antiviral for influenza, making this its second major respiratory-focused deal this year following its $10.0B buyout of Verona Pharma in July

• Longtime FDA Regulator Named as New CDER Director: Richard Pazdur, who spent 26 years at the FDA and served as the founding director of the Oncology Center of Excellence, was appointed the new CDER director

Markets Overview

The S&P 500 and the Dow were up 0.1% and 0.3%, respectively, while the Nasdaq was down 0.5% on the week

• The Nasdaq retreats for the second straight week in November as investors continue to scrutinize tech valuations

The NYSE Pharma Index and NBI were up 6.3% and 4.2% respectively

Notable changes in share price:

• Cidara Therapeutics (NASDAQ: CDTX): Shares surged 109.3% after the Company was acquired by Merck for $9.2B, marking Merck’s second major respiratory-focused acquisition this year following its Verona Pharma deal in July

• Mersana Therapeutics (NASDAQ: MRSN): Shares rose 228.5% on the news Mersana was being acquired by Day One for $129.0M upfront, with total deal value potentially reaching $285.0M

• Cogent Biosciences (NASDAQ: COGT): Shares jumped 126.3% following positive Phase 3 results in second-line gastrointestinal stromal tumors

• Galecto (NASDAQ: GLTO): Shares rose 442.0% after the Company announced it would acquire Damora Therapeutics, a Company developing treatments for myeloproliferative neoplasms, alongside a $285.0M PIPE raise

Sources: Pitchbook, Biomedtracker, and CapIQ

Equity Markets

IPO Markets:

No companies completed an IPO or filed an S1 last week

Of 21 companies in the queue, only two intend to raise at least $100.0M in proceeds

IPOs that have priced this year have delivered a median gain of 6.7%, with ~60% of newly public companies trading above their offer price   

Follow-On Offering Markets:

There were 15 follow-on equity offerings totaling ~$1.380.4M, including: 

• Cogent Biosciences (NASDAQ: COGT) raised $300.0M to support commercialization preparation and late-stage development of bezuclastinib, a tyrosine kinase inhibitor, in systemic mastocytosis and GIST, as well as to repay ~$50.0M in outstanding loans

• Centessa Pharmaceuticals (NASDAQ: CNTA) raised $250.0M to advance its Orexin Receptor 2 agonist pipeline, including ORX750 in idiopathic hypersomnia and narcolepsy (Type 1 and 2), ORX142 in various, undisclosed neurological and neurodegenerative diseases, and ORX489 in undisclosed neuropsychiatric disorders

• Biohaven (NYSE: BHVN) raised $175.0M to support late-stage clinical development of its neurology and immunology portfolio, including Phase 3 programs for taldefgrobep in SMA and obesity and BHV-7000 for epilepsy and major depressive disorder, as well as to fund additional R&D initiatives

• Inventiva (NASDAQ: IVA) raised $150.0M to fund the Phase 3 NATiV3 trial of lanifibranor in NASH, advance pre-commercial activities for lanifibranor, and support continued development across its metabolic and fibrosis portfolio

• Vor Biopharma (NASDAQ: VOR) raised $100.0M to support clinical advancement of telitacicept, including funding Phase 3 clinical trial for primary Sjögren’s syndrome, as well as manufacturing and pre-commercialization activities for telitacicept

• Verastem Oncology (NASDAQ: VSTM) raised $90.0M to support commercialization readiness for avutometinib and defactinib in recurrent low-grade serous ovarian cancer, as well as continue development for additional RAS-pathway targeting programs

• Annexon (NASDAQ: ANNX) raised $75.0 to advance its complement-targeting neuroinflammation portfolio, including Phase 3 development for tanruprubart in Guillain-Barré syndrome and vonaprument in geographic atrophy

• Precision BioSciences (NASDAQ: DTIL) raised $75.0M to support advancement of its ARCUS in vivo gene-editing technology across multiple programs, including PBGENE-HBV for chronic hepatitis B, PBGENE-DMD for Duchenne muscular dystrophy, and additional partnered programs in various liver and neuromuscular diseases

• Eledon Pharmaceuticals (NASDAQ: ELDN) raised $50.0M to advance Phase 3 development of tegoprubart as an anti-immune rejection therapy in multiple transplant settings, including kidney, islet cell, liver, and heart

• Fennec Pharmaceuticals (NASDAQ: FENC) raised $35.0M to repurchase and redeem convertible notes issued to Petrichor Opportunities Fund, with remaining funds used to continue commercialization for PEDMARK in pediatric platinum-induced ototoxicity
  

PIPE/RDO Markets:

There were six PIPE/RDO deals last week raising an aggregate ~$355.7M, including:

• Galecto (NASDAQ: GLTO), developing treatments for cancer and inflammation, raised $284.9M led by Fairmount Capital. The private placement occurred concurrent with the closing of Galecto's acquisition of Damora Therapeutics, a privately held CMompany developing antibody therapeutics to treat mutant calreticulin-driven myeloproliferative neoplasms, including essential thrombocythemia and myelofibrosis

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