Alkermes expands CNS portfolio with acquisition

In what is its first outright M&A deal in two decades, Ireland-incorporated biotech firm Alkermes (Nasdaq: ALKS) has entered into a definitive agreement to acquire Rodin Therapeutics, a privately held biopharmaceutical company focused on developing novel, small molecule therapeutics for synaptopathies.

This transaction builds on Alkermes' experience in central nervous system (CNS) diseases and expands Alkermes' CNS development efforts into a wide range of neurodegenerative disorders, the company explained, but investors’ were not too impressed, pushing its shares 5.4% lower to $19.86 by mid-morning trading.

Rodin has been working to develop first-in-class, orally-available, brain-permeable therapeutics for synaptopathies by designing molecules that target specific histone deacetylase (HDAC) complexes. Selective inhibition of the HDAC−co-repressor of repressor element-1 silencing transcription factor (CoREST) complex is believed to reactivate neuronal gene expression, strengthen existing synapses and promote the creation of new synapses, while minimizing known class-based hematologic safety concerns.