Understanding of the molecular structure of cancer, Blueprint Medicine believes, can be used to develop targeted cancer therapies. And the startup has just raised the capital to do it. The Cambridge, Massachusetts-based firm closed a $40 million series A financing round led by Third Rock Ventures, which co-founded the company along with Nicholas Lydon, Brian Druker, Chris Varma, and David Armistead. Lydon and Druker were instrumental in the development of Gleevec, a targeted kinase inhibitor that was the first approved cancer drug in its class. It transformed chronic myeloid leukemia from a fatal cancer into a manageable disease for a subset of patients.

Blueprint Medicine will use proceeds from the financing to develop new cancer therapies using its proprietary compound library and technology platform that targets the driving molecular aberrations of cancer and emerging resistance mechanisms unique to certain cancer patients.

“Over the past decade, targeted kinase inhibitors have been successfully designed, advanced into clinical trials and delivered to patients, forever changing the way cancer is treated,” says Lydon. “We are now at a crossroads where innovative drug discovery and development could again enable a transformative shift in cancer treatment. By leveraging the growing body of molecular and cancer genome data and focusing on patients with clearly defined molecular aberrations, Blueprint Medicines is positioned to develop the selective cancer treatments that will make this transformation possible.”

Merrimack Pharmaceuticals, another Cambridge-based targeted cancer drug developer, has raised $77 million in a series G private financing from new and existing investors Credit Suisse First Boston Next Fund, Crocker Ventures, funds advised by Fred Alger Management, funds advised by Noonday Asset Management, Jennison Associates, TPG-Axon Capital and WT Investment Advisors Fund.

The money will be used to advance Merrimack's pipeline of therapeutics including five candidates in mid-stage and early stage trials. The startup’s lead compound MM-398 is a nanoliposomal formulation of irinotecan being developed in partnership with PharmaEngine. MM-121, an ErbB3 antagonist, is in mid-stage development partnered with Sanofi-Aventis.

Austrian biotech f-star closed a $22 million (€15 million) financing led by SR One, the corporate venture capital arm of GlaxoSmithKline. Existing investors Atlas Venture, Aescap Venture, Novo Ventures, TVM Capital, Merck Serono Ventures, and MP Healthcare Venture Management also participated in the round. F-star uses its modular antibody technology platform to generate improved antibodies with high affinity, efficacy and targeting capabilities compared to traditional antibodies. The company plans to use proceeds from the financing to progress its first product candidates through IND-enabling studies and into the clinic.

Endo Pharmaceuticals’ $2.9 billion acquisition of American Medical Systems was the week’s biggest transaction. The deal expands Endo’s presence in urology and pain, positioning the company to deliver comprehensive healthcare solutions—from drugs and devices to services–in these areas [See story].

German biotech Pieris signed its third drug discovery partnering deal in seven months, this time with Japanese pharma Daiichi Sankyo for $10 million (€7 million) upfront in a collaboration and licensing agreement under which Pieris will apply its apply its anticalin scaffold technology to discover novel anticalins against two Daiichi Sankyo targets. Pieris will receive committed research funding and payments of up to $145 million (€100 million) per target based on successful achievement of research, preclinical, regulatory, and commercial milestones while Daiichi Sankyo will have exclusive marketing rights worldwide for all commercialized anticalin products [See story].

Merck is creating a joint venture with Sun Pharmaceutical Industries, a major Indian pharma, to develop, manufacture and commercialize new combinations and formulations of branded generics in emerging markets.

The partnership combines Sun Pharma’s platform technologies for product development and its manufacturing network with Merck's clinical development and international regulatory expertise and a broad, geographic commercial footprint. The companies said that they will focus on “innovative branded generics,” that bring together combinations of medicines using platform delivery technologies designed to enhance convenience for patients in emerging markets. The joint venture will be structured through Merck and Sun Pharma's respective subsidiaries. Financial details of the joint venture were not disclosed.