Another Watertown Biotech Goes Public and the Commonwealth Claws Back Hiring Tax Credits
Plus pre-clinical data results and more!
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Before reading on about the latest biotech deals, take a look at how some Watertown life science companies volunteeredduring Watertown Helps Out. As always, if you find this newsletter informative share with a friend and subscribe to support our work.
Treeline Biosciences announces intention to go public via reverse merger
Treeline Biosciences, headquartered at 500 Arsenal Street, announced today that they will become a publicly traded company by acquiring Boston-based Standard Biotools (NASDAQ: LAB). The merged company will maintain the Treeline name and trade on the NASDAQ under the symbol TRLN. A spokesperson for the company told Watertown Bio that the company expects to maintain its headquarters in Watertown after the merger. Treeline is the second Watertown based-company to announce going public after Ingenia Therapeutics’ announcement last month.
Treeline is an oncology focused company with four announced programs (three in phase 1 clinical trials) and three preclinical programs against undisclosed targets in oncology, neurology and immunology, according to their investment disclosures. There three clinical programs are the oral degraders TLN-121 and TLN-254 in development to treat lymphomas and TLN-372, a pan-KRAS inhibitor. As we discussed in March, Treeline is part of Watertown’s emerging targeted protein degrader cluster, along with oncology focused neighbors C4 Therapeutics and Foghorn Therapeutics. Their pan-KRAS inhibitor puts them in competition with Arsenal Street neighbor Kestrel Therapeutics, who also has a pan-KRAS small molecule inhibitor in phase 1 clinical trials and signed a $1.45 billion dollar with Abbvie last month to fund the development of their inhibitor.
Treeline, which has raised a total of $1.2 billion in funding from private investors, has not disclosed why they chose to go public via a reverse merger, rather than becoming the 9th Massachusetts biotech (at the time of writing) to IPO this year, or why they chose to buy Standard Biotools, rather than using a Special Purpose Acquisition Company (SPAC), which gained popularity in 2021 during the peak of the COVID biotech boom. Standard Biotools currently operates a mass cytometry and microfluidics, which Treeline does not intend to operate after the merger. The company expects the deal to close in the second half of 2026, pending regulatory and shareholder approval.
Massachusetts Life Science Center requires Two Watertown Companies to pay back tax credits for failing to meet hiring requirements.
The Boston Business Journal reported last week that two Watertown headquartered companies: NanoDx (headquartered at 66 Galen Street) and Seismic Therapeutic (headquartered at 260 Arsenal Place) were among the 17 life science companies that received termination notices from the Massachusetts Life Science Center (MLSC) for failing to maintain hiring commitments they had made in exchange for tax credits from the Commonwealth. Prime Medicine, which is headquartered in Cambridge but operates a lab on Arsenal Street, also received a termination notice.
For context, the the General Court first established an annual life science tax incentive program in 2008 and passed the most recent re-authorization in 2024. The current version authorizes up to $40 million in annual tax incentives administered through MLSC for life science companies that commit to creating jobs in the Commonwealth. As part of the commitment, the company must commit to hiring and retaining at least 5 or 10 jobs (depending on company size or location) for a 3 year period (5 year period before 2024). If the company does not maintain their commitment, MLSC can claw back a portion of the tax credit. The table below shows the most recent tax credits each of the Watertown companies received. Treeline is the second Watertown based-company to announce going public after Ingenia Therapeutic’s announcement last month.
The Commonwealth has not disclosed how much of the incentive will be clawed back. Last year, the BBJ filed a public records request with the Department of Revenue to discover how much was owed by companies that failed to maintain their commitments, but the DOR denied the request, saying “the information is either “contained in documents filed with the commissioner of revenue or is contained in a tax return,” and “therefore barred from disclosure by any employee of the Commonwealth.”
Quick Hits
Pre-Clinical and Clinical Trial News
Century Therapeutics (99 Coolidge Ave) announced preclinical data for CNTY-813 a potential islet replacement therapy for diabetes.
Kymera Therapeutics (The Arsenal on the Charles) announced preclinical data for KT-579, an IRF5 degrader in development to treat Lupus.
Disc Medicine (The Arsenal on the Charles) presented updated Phase 2 data from their Rally-MF trial of DISC-0974, in patients with myelofibrosis.
People
Kymera Therapeutics appointed Penny Carlson as their Senior Vice President, Development Operations.
EnPlusOne Biosciences brought Jim Weissman on to their board of directors.
Nocion Therapeutics (a remote-company headquartered on Main Street) appointed Vineet Agarwal as Chief Business Officer.
That’s all for this week!
