Processa raises $300 million and acquires BTK inhibitor to challenge Novartis

Processa Pharmaceuticals acquired Vividion Therapeutics to secure a next-generation BTK (Bruton tyrosine kinase) inhibitor, raising 300 billion won in funding and positioning itself to challenge Novartis.

According to biotech publication Fierce Biotech on the 29th (local time), Processa acquired Vividion in an all-stock transaction and secured the rights to VT-7208, an oral BTK inhibitor candidate. The acquisition is a strategic move by Processa to expand into autoimmune diseases.

Processa plans to begin Phase 2 clinical trials for food allergy and chronic spontaneous urticaria (CSU) by the end of this year. It will then begin a Phase 2 trial in patients with relapsing multiple sclerosis (RMS) in the first half of 2027. Data readouts are expected in the second half of 2027, the first half of 2028 and the second half of 2028, respectively.

Processa also completed a $200 million (approximately 300 billion won) private financing to fund clinical development. Bain Capital Life Sciences, Janus Henderson Investors and RA Capital Management participated in the financing.

Sheila Gujrathi, Vividion’s founder and chair, said, "We are pleased to have the support of a premier group of health care investors," adding, "The capital secured through this transaction will allow us to advance the food allergy, chronic spontaneous urticaria and relapsing multiple sclerosis programs in parallel rather than sequentially." Gujrathi is expected to join Processa’s board of directors.

VT-7208 is a covalent BTK inhibitor capable of penetrating the central nervous system (CNS). It can be administered at a lower dose than existing BTK inhibitors and is designed to reduce the risk of hepatotoxicity. The company said VT-7208’s high selectivity minimizes off-target kinase activity.

In the current BTK inhibitor market, Novartis’ Rhapsido is leading the way. Rhapsido was the first BTK inhibitor to receive U.S. Food and Drug Administration (FDA) approval last year as a treatment for chronic spontaneous urticaria. BTK is attracting attention as a therapeutic target because it is involved in both allergic and autoimmune responses.

The acquisition marks a strategic shift for Processa. After discontinuing development of next-generation gemcitabine last year, the company has focused on developing cancer drugs, including next-generation capecitabine.

George Ng, Processa’s chief executive officer (CEO), said, "The acquisition of Vividion represents an opportunity to create shareholder value by securing a differentiated clinical-stage BTK inhibitor program with the potential to address significant unmet needs across multiple disease areas."