Quick Take

Global immunology company Argenx is acquiring Unnatural Products, a Santa Cruz-headquartered company focused on developing new treatments for certain types of rare cancers and diseases, in a deal that could be worth upward of $1 billion, Jessica M. Pasko reports in her weekly roundup of local business. She's also got news on funding for Joby Aviation from the Air Force's innovation arm, the launch of this year's Lookout List and plenty more.

Each week, we’re taking a closer look at the movers and shakers, the growth of industries and what’s really driving the Santa Cruz County economy. I’ll be spotlighting some of the biggest areas for opportunity, updates on local development and all things underpinning the regional business scene each Wednesday.

Got ideas? Send them my way to news@lookoutlocal.com with “Business News” in the subject line.

Santa Cruz-based biotech company Unnatural Products acquired

A global immunology company announced this week that it will acquire Unnatural Products, a Santa Cruz-headquartered company focused on developing new treatments for certain types of rare cancers and diseases that have been resistant to other therapies.

Argenx will acquire Unnatural Products for $550 million upfront, plus up to $595 million in contingent value rights tied to development and regulatory goals.

Unnatural Products co-founders and UC Santa Cruz alumni Cameron Pye and Joshua Schwochert.
Unnatural Products co-founders and UC Santa Cruz alumni Cameron Pye and Joshua Schwochert. Credit: Argenx/Unnatural Products

UC Santa Cruz alumni Cameron Pye and Joshua Schwochert founded Unnatural Products in 2017, with a focus on enabling new treatments for certain diseases, largely using what are known as orally derived macrocyclic peptides. Macrocyclic peptides are a newer kind of medicine designed to be as potent as injectable drugs, such as insulin, but simple enough to be swallowed as a pill. 

Unnatural Products has worked with pharmaceutical leaders like Novartis and Merck to develop next-generation treatments using Unnatural Products’ artificial intelligence-based technology. Earlier this year, the company received a $45 million funding round from a group of investors that included Argenx and Merck Global Health Innovation fund, Merck’s venture capital arm.

Under the terms of the acquisition, Unnatural Products, which currently has about 50 employees, will maintain its operations on the Westside of Santa Cruz. 

“The plan is for Unnatural Products to remain in Santa Cruz with its current leadership and team in place,” Argenx spokesperson Ben Petok told Lookout. “Argenx is looking to make Unnatural Products our home for macrocyclic peptide discovery and one of the most attractive things about [the company] is the culture and expertise of the team in place.”

Joby lands expanded funding from the U.S. Air Force

The U.S. Air Force has awarded Santa Cruz-based Joby Aviation more funding to accelerate the company’s autonomous flight technology. That brings the military organization’s total commitment to almost $37 million. 

The Air Force’s innovation arm, AFWERX, has provided significant funding to Joby and other companies working in electric aviation technology in recent years as it seeks to transform its operations. The funding for Joby will help support Joby’s autonomy software and expanded operational testing. 

Joby recently completed its first autonomous flight across the United States, with a Cessna Caravan equipped with Joby’s software.

Meanwhile, the company continues to build on efforts to launch commercial passenger service for its electric air taxis, which are designed to carry a pilot and four passengers at speeds of up to 200 mph. The service will operate similarly to Uber or Lyft, with consumers using a mobile app to hail a ride.

In an earnings report released last week, Joby officials announced that they had significantly increased manufacturing output, completed the company’s first flights in Florida and Texas as part of the White House-based initiative to accelerate commercialization of air taxis, and made continued progress toward the fifth and final stage of Federal Aviation Administration certification.

The Lookout List 2026 launches this week

Which local businesses and organizations do your neighbors count on for everything from buying a car to purchasing a wedding bouquet? Check out this year’s installment of the Lookout List to see which businesses ranked at the top. The first categories of winners started rolling out Monday and will continue through next week. Check it out here.

ICYMI: A new Scotts Valley arcade is betting on the enduring appeal of analog play

Two former San Francisco software engineers are now the proprietors of a new arcade in Scotts Valley.

Coin Drop Arcade, which held its soft opening at the end of last month, brings together a collection of pinball, arcade basketball and claw games to the Camp Evers Shopping Center on Scotts Valley Drive.

Kacey Lewis, owner of Coin Drop Arcade, wants to share the games she played as a kid with a new generation.
Kacey Lewis, owner of Coin Drop Arcade, wants to share the games she played as a kid with a new generation. Credit: Kevin Painchaud / Lookout Santa Cruz

Kacey and John Lewis, who moved to Scotts Valley just before the pandemic began, have set out to create a new place for kids of all ages, capitalizing on the growing interest in “vintage technology” like old-school arcade games and especially pinball, which is experiencing a renaissance around the country. 

Read more from Alia Yee Noll here.

Ch-ch-changes

  • Straw Hat Pizza in Watsonville to close: The final day of service for Straw Hat Pizza at 2026 Freedom Blvd. is Sunday, Nov. 22. The pizzeria’s owners announced last week they were shutting down after a decade of owning and operating the pizzeria.
  • Driscoll’s grower calls it quits in Ventura: A major strawberry supplier for Watsonville-based Driscoll’s is shutting down. SoCal Berry Growers, LLC, operates six locations in Ventura County and employs more than 500 people. Layoffs are expected to begin in January, according to a letter company officials sent to a city councilman in Oxnard, where the company operates two locations. The news came just a few months after employees had voted to unionize. 
  • Watsonville Airport director to retire next month: Rayvon Williams will step down from his role as director of Watsonville Municipal Airport at the end of December. Williams has served as director for more than 15 years; prior to that, he’d spent many years working in the tech industry. His last day will be Dec. 30.
  • Monterey Bay Economic Partnership kicks off search for new CEO and president: Regional nonprofit MBEP is seeking a new president and CEO to lead its next chapter. Kate Roberts, who served as the organization’s CEO from 2015 to 2021, is currently serving in an interim capacity. She took over from Tahra Goraya, who recently stepped down from the role for personal reasons. Full details about the position are here.
  • Grand opening set for new Filipino market in Capitola: A grand opening is set for Saturday, Nov. 14, for RC’s Filipino Asian Market from 11 a.m. to 6 p.m. RC’s, located in Brown Ranch Marketplace, stocks a selection of Asian and Filipino groceries, including specialty produce and frozen goods. Representatives from the Capitola Chamber of Commerce will host a ribbon-cutting as part of the festivities.

Got hires, promotions or departures to report? Send them to news@lookoutlocal.com with the subject line “Career changes.”

Looking at the numbers

  • 74.1%: That was the hotel occupancy rate for Santa Cruz County in September, up from 67.2% a year earlier. Short-term rental occupancy was also up, increasing from 39% in September 2025 to 57.8% in September 2026. Average daily room rates for both short-term rentals and hotels also increased, as did revenue per available room (RevPAR,) a metric used by the hospitality industry to measure how effectively a property fills its rooms at an average rate. With September marking the official end of summer, and schools already back in session, hotel and short-term rates were down slightly from August and July, as is typical. Local rates for September 2026 mirrored national trends, with U.S. hotel performance metrics up from last year, according to the latest report from Visit Santa Cruz County. 

What’s new on the Lookout Job Board

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Save the date

  • Friday, Nov. 13: The Aptos Chamber of Commerce will hold its annual awards dinner and auction from 5 to 9 p.m. at Seascape Beach Resort. For tickets and registration, go here.
  • Saturday, Nov. 14 – Sunday, Nov. 15: Trailside Books will officially open its doors in Aptos Village, with a grand opening celebration weekend that includes a ribbon-cutting ceremony with the Aptos Chamber of Commerce at 1 p.m. on Sunday. Festivities will take place from 11 a.m. to 7 p.m. both days. Trailside Books, one of two new bookstores in the county, will be located at 136 Aptos Village Way, Suite 100.
  • Saturday, Nov. 14: Sierra Evans Creative Studio, a new shop and gallery, will host a grand opening party from 5 to 7 p.m. at 8044 Soquel Dr., Aptos. 
  • Thursday, Nov. 19: The Santa Cruz Area Chamber of Commerce will hold its next business after-hours event at Hotel Paradox, 611 Ocean St. in Santa Cruz. The networking event takes place from 5 to 7 p.m. and is open to both chamber members and non-members. Tickets are available here.

Add your business or networking events to Lookout’s free public calendar, BOLO. Click here to add your event.

Business news worth reading

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Jessica M. Pasko has been writing professionally for more than two decades. She cut her teeth in journalism as a reporter for the Associated Press in her native Albany, New York, where she covered everything...