Vivoryon reclaims Chinese rights to kidney disease drug amid cash crunch

Vivoryon Therapeutics, a Munich-based biotech, has taken back the rights to develop its kidney disease candidate in China after a licensing arrangement with Simcere Pharmaceuticals.

The original 2021 agreement gave Simcere an upfront payment and tied Vivoryon to potential milestone payments of up to $565 million for an Alzheimer’s therapy based on the amyloid species N3pE.

Following two phase-2 failures in Alzheimer’s, Vivoryon shifted focus to the same compound, varoglutamstat, as a possible treatment for diabetic kidney disease, citing a positive phase-2 analysis last year.

With cash reserves now down to about €1.7 million, the company is seeking new financing or partnership to fund a planned phase-2b study for the kidney indication.

The move restores Vivoryon’s ability to pursue the Chinese market, but the firm’s financial strain underscores the challenges of advancing the program.