Companies with mature science such as kinase inhibitors and “zombie” biotechs – public companies that remain listed despite numerous failures – rarely thrive in the biopharma M&A market. Bidders typically prefer a company with an approved drug or a drug near approval, which can be tucked neatly into revenue and profit streams. A promising, specific kinase inhibitor for a certain cancer may attract some attention. More often, the drug is destined to become a lonely JAK (just another kinase) because the revenue potential is too low.
And even though a zombie may hold twice the cash of its market cap, few bidders immediately circle for untapped science potential after a drug crashes badly in the clinic. Reverse mergers are the norm, when managements and boards finally are forced to relent. This year’s SanaCurrents selections reflect both ends of the spectrum.
Genmab A/S’s (NASDAQ:GMAB) recent $8 billion cash bid for Merus N.V. (NASDAQ:MRUS) reflects the desire to pull in a new revenue stream via Merus’s cancer drug petosemtamab. SanaCurrents issued a report on a petosemtamab trial in May 2025, forecasting a positive outcome for the petosemtamab plus Keytruda (pembrolizumab) to treat in head & neck cancer. The data were positive and Merus’s shares rose 31.5% on the news. Genmab then bid for Merus on September 29, 2025, for $97 per share. The companies expect the deal to close early next year. Upon closing, the return from the original May 2025 stake will be 115%.
SanaCurrents also issued a report on the Genmab’s internal drug, BNT312/GEN1042, to treat head & neck cancer on September 16. As Genmab appears to be placing an emphasis on petosemtamab, SanaCurrents is exiting its position in Genmab.
Two other companies recently attracted offers following clinical success. Novartis (NYSE:NVS) bid $1.4 billion for Tourmaline Bio, Inc. on September 9, following Tourmaline’s successful data from its phase II trial of pacibekitug to treat atherosclerotic cardiovascular disease (ASCVD). Tourmaline announced the results in June 2025 and Novartis bid three months later. The Novartis offer at $48 per share represents a 172% increase from the time of the SanaCurrents original report in March 2024.
Johnson & Johnson (NYSE:JNJ) reportedly is in talks to buy Protagonist Therapeutics (NASDAQ:PTGX) to add Protagonist’s icotrokinra, a drug to treat immune diseases, including plaque psoriasis and ulcerative colitis. The two companies are in a partnership to develop icotrokinra. J&J reportedly owns the exclusive rights to commercialize the product. Protagonist also is developing rusfertide (PTG-300) to treat the rare blood cancer polycythemia vera (PV) with Takeda. The companies reported positive data from a rusfertide trial in March 2025. Protagonist’s stock has climbed 66% since the original rusfertide report one year ago.
In contrast to the buyout offers, MoonLake Immunotherapeutics (NASDAQ:MLTX) and aTyr Pharma, Inc. (NASDAQ:ATYR) expect to rely on significant cash holdings to regroup following devastating late-stage clinical failures.
MoonLake, with a market cap of $639 million, held $425 million in cash and short-term securities as of June 30, 2025. The company’s stock cratered on October 17, falling 76.8% after the company reported very disappointing data from two phase III trials of sonelokimab to treat the rare skin disorder Hidradenitis suppurativa. The company is evaluating a clinical path forward for sonelokimab, its primary asset.
aTyr Pharma likewise targeted a rare disease, pulmonary sacrodiosis. Its phase III trial testing efzofitimod to treat pulmonary sacrodiosis did not meet the primary endpoint in change from baseline in mean daily oral corticosteroid (OCS) dose at week 48, although the company said clinical benefit for efzofitimod was observed across multiple study parameters. The company’s shares fell 78% on the news. aTyr held $101 million in cash and available-for-sale investments as of June 30. Following the phase III data, aTyr’s market cap has ranged between $90 million and $95 million. The company expects to hold a meeting with the FDA within the next few months to determine if it can advance efzofitimod without conducting another phase III trial.
Glaukos Corporation (NYSE:GKOS) on October 20 announced the FDA had approved its Epioxa HD/Epioxa New Drug Application (NDA) to treat keratoconus, a rare eye disease that affects the structure of the cornea. Unfortunately, an analyst report surfaced on the same day that Glaukos management will meet with five Medicare administrator contractors on November 12. Though the analyst characterized the meeting only as a sharing of information, investors had doubts, sending the stock down ~10%.
SanaCurrents issued a report on the Epioxa decision in June 2025. Glaukos shares have slid ~25% since the time of the report.