The Needle Issue #9


Welcome to the latest issue of the Needle, a newsletter from Haystack Science helping you navigate the latest translational research and the latest news in early-stage biotech. After a busy week up in Boston at RESI 2025 and BIO, there was a lot to digest. So, it took us a bit longer to send out our roundup.

This week, the immunoproteosome is in our crosshairs with an exciting new study revealing its involvement in neurometabolism and neuroinflammation. Neuroinflammation was a pervasive theme this week, with several papers identifying new targets and others pointing to new mechanisms to overcome immunosuppression in the tumor microenvironment. We provide our usual roundup of recent startup news, including the emergence of new funding mechanisms for labs and early-stage ventures. If you are aware of any financing or deals that we may have missed, let us know (info@haystacksci.com).

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Drug development efforts targeting the constitutive 26S proteosome have led to the development of several important multiple myeloma (MM) and mantle cell lymphoma treatments, including the first landmark FDA approval of Millennium Pharmaceuticals’ (now Takeda) dipeptide boric acid Velcade (bortezomib) in 2003 and second-generation molecules, such as Amgen/Ono Pharmaceutical’s irreversible inhibitor Kyprolis (carfilzomib) and Takeda’s orally available inhibitor Ninlaro (ixazomib). Second-generation versions of these ‘pan-proteosome’ drugs have longer duration of effect, reduced peripheral neuropathy and increased safety in renally impaired patients, but may cause gastrointestinal and cardiac toxicity. This toxicological profile has shifted attention to developing inhibitors selective for an alternative form of the core 20S proteosome—the immunoproteasome, which processes peptides for presentation to CD8+ T cells in the MHC-I complex and is constitutively expressed only in hematopoietic cells, induced in immune cells stimulated in the presence of IFN-γ, and upregulated in certain cancers like MM.

Currently, Kezar Life Sciences’ is furthest along in development; in April, it completed a phase 2a trial in autoimmune hepatitis of zetomipzomib (KZ-616), a small-molecule that inhibits both the immunoproteasome core particle component beta subunit 8 (PSMB8; LMP7/β5i) and PSMB9 (LMP2/β1i). Merck kGaA (Darmstadt, Germany) is also pushing forward with a phase 1 clinical program of M3258, a small-molecule inhibitor specific for PSMB8 and intended for use in MM (Principia Biopharma’s selective PSMB8 inhibitor was swallowed up by Sanofi in 2020 when the pharma acquired the San Francisco-based biotech’s Bruton’s tyrosine kinase inhibitor program). Elsewhere, Leiden University startup iProtics recently received a €200K grant from the Dutch Biotech Booster to develop selective immunoproteosome inhibitors, while Auburn University spinout Inhiprot (West Lebanon, NH) received SBIR funding to develop a dual PSMB6/PSMB9 inhibitor for MM. Now, a new study reveals immunoproteosome targeting may also have benefits in neuroinflammatory diseases like multiple sclerosis.

The work, published in Cell and led by Catherine Meyer-Schwesinger and Manuel Friese, from University Medical Center Hamburg-Eppendorf, identifies a neuron-intrinsic mechanism of neurodegeneration in multiple sclerosis (MS) driven by the immunoproteasome.

Under healthy conditions, neurons utilize the constitutive proteasome subunit PSMB5 to regulate proteostasis and degrade 6-phosphofructo-2-kinase/fructose-2,6-biphosphatase 3 (PFKFB3), a potent stimulator of glycolysis. This degradation is key because neurons rely more on the pentose phosphate pathway than on glycolysis to produce antioxidants like NADPH and glutathione for protection against oxidative stress.

However, Meyer-Schwesinger, Friese and their colleagues show that, during neuroinflammation, chronic exposure to interferon-γ leads to the induction of the immunoproteasome in neurons, triggering the replacement of constitutive proteosome PSMB5 (β5c) with PSMB8 (β5i). This subunit swap in neurons reduces proteasomal activity, resulting in accumulation of PFKFB3, which in turn enhances glycolysis, diminishes the activity of the pentose phosphate pathway, and impairs redox homeostasis — conditions that sensitize neurons to oxidative injury and ferroptosis.

The team showed that this mechanism was operational in both experimental autoimmune encephalomyelitis (EAE; a mouse model of MS) and brain tissue from MS patients. Moreover, neuron-specific knock-out of Psmb8 or pharmacological inhibition using the small-molecule PSMB8 inhibitor ONX-0914 (originally developed at Onyx Pharmaceuticals/Proteolix) protected neurons in vivo from inflammation-induced damage. Similarly, blocking PFKFB3 with the small-molecule inhibitor PFK-158 or through conditional knockout in neurons reduced disease severity in EAE, prevented neuronal and synaptic loss, and reduced markers of oxidative stress and lipid peroxidation.

It is important to highlight that, unlike cancer or immune cells, neurons do not upregulate PSMB8 in response to a series of MS-related cytokines. So, the neuron-specific effect reported in this study might only become active upon chronic neuroinflammation (i.e. chronic exposure to interferon-γ). Understanding this mechanism might reveal new targets related to the immunoproteosome in the treatment of MS.

This brings us to challenges for translational efforts seeking to develop immunoproteosome inhibitors against MS. Several important neuronal processes, such as synaptic transmission and calcium signaling, are tightly linked to proteasome function; thus, pan-proteosome inhibitors like Velcade could be detrimental to the CNS. The saving grace of approved proteosome inhibitors is that current chemotypes (boronate-based peptides or epoxyketone-based binders) do not cross the blood brain barrier, at least in healthy individuals. Thus, any MS program might need to use intrathecal injection for compounds derived from existing chemical series or engage a medicinal-chemistry effort to design molecules that can breach the BBB and retain potency.

The gambit for immunoproteosome-selective drugs is that they avoid inhibiting constitutive 26S proteosome activity in most tissues (and non-inflammed CNS), which is what makes Velcade and its derivatives so difficult for patients to tolerate; an immunoproteosome inhibitor should therefore have a more favorable safety profile. But so far, immunoproteosome-targeting drugs have had their own share of toxicity problems in the clinic.

Last October, Kezar abandoned its program for zetomipzomib in lupus nephritis after the FDA placed a clinical hold on the trial after 4 patient deaths. The agency placed a second partial hold on the company’s autoimmune hepatitis trial in 24 patients last November due to concerns about steroid control and injection site reactions in 4 patients who were waiting to roll over into the open-label extension arm. Concerns about compromised immune surveillance of acute or latent viral infections due to hobbled antigen processing and presentation would also need to be explored.

In sum, the new work provides strong evidence that the immunoproteosome plays a key role not only in inflammation or infiltration of immune cells, but also in a metabolic switch in neurons which is a key driver of vulnerability in MS. It will be interesting to see whether either targeting immunoproteosome component PSMB8 or taking a completely different tack, blocking PFKFB3, will prove more practical as a neuroprotective strategy in MS.

Papers: Best of the rest

Target biology

Reducing lysine lactylation boosts NK cell cytotoxicity in acute myeloid leukemia xenograft mouse models | Nature Immunology

IRF4 expression by NK cell precursors predetermines exhaustion of NK cells during metastasis in melanoma mouse model| Nature Immunology

Identifying signaling lymphocyte activation molecule 5 (CD84) as a potent survival factor in acute myeloid leukemia | JCI

Genetic analysis and mixed chimera models reveal inhibition of T cell receptor (TCR)-signaling protein CARD11 as an important pathway for preventing CD8+ T cell exhaustion | Nature Immunology

PSGL-1 is a phagocytosis checkpoint that enables tumor escape from macrophage clearance in mouse models of leukemia, lymphoma, and multiple myeloma | Science Immunology

Cholinergic neuronal activity promotes diffuse midline glioma growth through muscarinic signaling | Cell

Dysregulation of ZBTB7A in orbitofrontal cortex promotes astrocyte-mediated stress susceptibility and is associated with major-depressive-disorder | Neuron

AMPAR inhibition lowers S1P in human blood and improves murine autoimmune neuroinflammation by blocking T cell egress from lymph nodes | Science Translational Medicine

SARM1 loss protects retinal ganglion cells in a mouse model of autosomal dominant optic atrophy | JCI

Genetic upregulation of angiotensin-converting enzyme (ACE) in microglia protects against Alzheimer’s disease in mouse models of human familial amyloid | Nature Aging

Nociceptor-derived CGRP enhances dermal type I conventional dendritic cell function to drive autoreactive CD8+ T cell responses in vitiligo | Immunity

Molecular structure analysis of urate transporter URAT1 inhibition by gout drugs to guide discovery of new drugs | Nature Communications

The R136S mutation in the APOE3 gene confers resilience against tau pathology via inhibition of the cGAS-STING-IFN pathway | Immunity

Therapeutics

Small-molecule inhibitors that bind redundant oligosaccharyltransferase subunits partially interfere with EGFR N-glycosylation, show a reduced toxicity profile, and slow tumor growth in preclinical lung adeoncarcinoma GEMM models | Cell Chemical Biology

A first-in-class EGFR-directed KRAS G12V selective inhibitor | Cancer Cell

Isoxazole 9 represses nuclear pyruvate dehydrogenase, induces reprogramming and slows tumor growth in patient-derived osteosarcoma xenograft models | Cell Metabolism

Small-molecule inhibitor of non-muscle myosin IIA and IIB prolongs survival in mouse models of glioblastoma | Cell

Bridge Bio’s BBO-10203 blocks RAS-PI3Kα interaction to inhibit tumor growth without inducing hyperglycemia in lung adenocarcinoma models | Science

Cellis’ adoptive cell therapy with macrophage-drug conjugates facilitates cytotoxic drug transfer and immune activation in glioblastoma models | Science Translational Medicine

OX40–heparan sulfate binding facilitates CAR T cell penetration into solid tumors in mice | Science Translational Medicine

Repurposed Servier small-molecule ADAMTS-5 inhibitor reduces muscle inflammation and fibrosis and improves function in Duchenne muscular dystrophy mouse models | Science Translational Medicine

GLP-1 receptor agonist therapy rescues metabolic and behavioral disruptions in mouse model of rare disease Bardet-Biedl syndrome mouse model | JCI

Systemic in utero gene editing as a treatment for cystic fibrosis | PNAS

Peptide modified AAV9 vectors (PM-AAV9) delivering ataxin-2 targeting miRNA improve survival and pathology in TDP-43 mice | Nature Communications

GRK-biased adrenergic agonists for the treatment of type 2 diabetes and obesity | Cell

An iPSC-derived CD19/BCMA CAR-NK therapy in a patient with systemic sclerosis | Cell

Startup news

​Several initiatives propose alternative funding mechanisms for early-stage biotech startups and translational investigators:

Turkish private equity firm İşbank Group commits $39 million to Gökhan Hotamışlıgil laboratory at Harvard and related startup Enlila to further work on fabkin, a hormone complex of FABP4 and nucleoside kinases linked to diabetes and cardiovascular disease

Publicly traded investment firm Syncona to return cash to shareholders but seeks to spin off new early-stage fund for London universities and researchers.

The US administration continues FDA regulatory upheaval and moves focus to SBIR grants:

FDA’s cell and gene therapy office head Nicole Verdun departs after spat with CBER director, leaving gene and cell therapy startups wondering about continuity of oversight.

FDA Commissioner Makary outlines National Priority Review Voucher to offer short review times for drug applications that align with national health priorities, domestic production or urgent US public health needs.

A new headache for biotechs: US Department of Health and Human Services axes grant to Juvena for clinical trial because of alleged links to ‘foreign’ investors

Congratulations to the winner and runner up of the RESI 2025 Boston June pitch competition:

Startup (location) Scientific founders (affiliation) Result at RESI Focus
Mind Lab (New York, NY) Jack E Henningfield (Johns Hopkins/Pinney Associates) Winner Combination analgesic product (MLB-001) comprising morphine sulfate, dextromethorphan and quinidine with decreased abuse liability
InomaGen (Chicago, IL) Rishi Arora (Northwestern University, Chicago, IL) Runner up Large area multi-polar low-energy transvenous electroporation device to facilitate myocardial cell transfer combined with subepicardially injected DNA plasmid encoding NAPH oxidase 2 shRNA for atrial fibrillation

Preclinical funding

Date Company (location) Amount (in millions) Funding type (lead investors) Therapeutic (lead) focus
June 5, 2025 Sortera Bio £7.5 Pre-seed (Cambridge Innovation Capital) Massively accelerated antibody lead discovery via array and sequencing, conversion into complementary RNA clusters translated into proteins and tethered via ribosome display for screening against antigens
June 10, 2025 Crucible Therapeutics (Sheffield, UK) £2.3 Grant (Innovate UK’s Biomedical Catalyst) Intrathecally administered siRNA for depleting splicing factor SRSF1 in C9ORF72-related ALS
June 10, 2025 Antares Therapeutics (Cambridge, MA) $177 Series A (Omega Funds, Atlas, Lightspeed, BVF Partners and Cormorant Asset Management) Scorpion Therapeutics spinout developing small-molecule inhibitors of undisclosed kinases and transcription factors for cancer and other diseases
June 11, 2025 Elkedonia (Strasbourg, France) €11 Seed (Kurma Partners, WE Life Sciences and French Tech Seed Fund) Small-molecule inhibitors of transcription factor ELK-1 for depression, post-traumatic stress disorder and addiction
June 12, 2025 Parallel Bio (Cambridge, MA) $21 Series A (AIX Ventures) Scalable human lymph-node and spleen organoids for drug screening combined with machine learning
June 16, 2025 Higher Medicine (Alexandria, VA) $0.1 Pre-seed (TEDCO) Small molecules for rare pediatric disorders, including Kabuki Syndrome and Friedrich’s Ataxia
June 16, 2025 NanoCell Therapeutics (Wayne, PA) ND Seed (Institute for Follicular Lymphoma Innovation) LNPs displaying a T-cell activator and targeting ligand, co-loaded with mini-circle DNA encoding CD19 × CD22 CARs and mRNA encoding a chromosome-integrating transposase for in vivo CAR-T therapy of B-cell lymphomas
June 18, 2025 Draig Therapeutics (Cardiff, UK) $140 Series A (Access Biotechnology) Small-molecule positive allosteric modulator of AMPA receptors for major depressive disorder plus small-molecule GABA-A receptor modulators for undisclosed neuropsychiatric disorders
June 18, 2025 Actio Biosciences (San Diego, CA) $55 Series B (Deerfield and Regeneron Ventures) Oral small-molecule inhibitors of TRPV4 for Charcot-Marie-Tooth type 2C and of KCNT1 for KCNT1-related epilepsy

Preclinical deals

Date Type Payer (location) Payee (location) Upfront (millions) Milestones (millions) Total (up to millions) Therapeutic Lead Focus
June 11, 2025 Strategic collaboration Novo Nordisk (Copenhagen, Denmark) Deep Apple Therapeutics (S. San Francisco, CA) ND ND $812 Oral small molecule targeting a non-incretin GPCR target for obesity and other cardiometabolic diseases
June 13, 2025 Strategic collaboration AstraZeneca (London, UK) CPC Pharmaceuticals (Shijiazhuang, China) $110 ND Up to $5,220 in milestone payments plus potential single digit royalties based on annual net sales ML-guided analysis of chemotype binding to target proteins and lead optimization
June 16, 2025 Strategic collaboration and license NextCure (Beltsville, MD) Simcere Zaiming (Shanghai, China) ND ND Up to $745 plus tiered royalties on net sales outside China plus license for linker and topo-isomerase payload Antibody-drug conjugate targeting cadherin-6 for the treatment of solid tumors
June 19, 2025 Strategic collaboration Sprint Bioscience (Stockholm, Sweden) A*Star Experimental Drug Development Centre (Singapore) ND ND ND Sprint’s compounds for MASH to be evaluated in EDDC’s preclinical inflammatory disease models
June 26, 2025 Strategic collaboration Novartis (Basel, Switzerland) Profound Therapeutics (Cambridge, MA) $25 in upfront and near-term milestone payments ND $750 total per target in total payments Large-scale RiboSeq to identify all RNAs actively being translated into human proteins associated with cardiovascular-disease

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Until the next issue,

Juan Carlos and Andy

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