Ad­di­tion­al back­ing arms Schrödinger with $110M in first ven­ture round — shin­ing a spot­light on its own pipeline

Turns out Schrödinger wasn’t done with its Se­ries E yet when it an­nounced a star-stud­ded $85 mil­lion in­vest­ment this Jan­u­ary in the lead-up to the JP Mor­gan con­fab. With a new stream of cash from In­vus, Pavil­ion Cap­i­tal, Lau­ri­on Cap­i­tal Man­age­ment and vir­tu­al re­al­i­ty en­tre­pre­neur Michael Antonov, the New York-based com­pa­ny now has $110 mil­lion in to­tal to grow its sprawl­ing com­pu­ta­tion­al chem­istry op­er­a­tion.

Ramy Farid

CEO Ramy Farid took the op­por­tu­ni­ty to boast that Schrödinger’s plat­form “has been val­i­dat­ed again and again across hun­dreds of tar­gets in re­al-world drug dis­cov­ery projects,” a num­ber that’s bound to get much big­ger as his team of 400 push­es the reach of their tech­nol­o­gy.

By in­te­grat­ing the speed of ma­chine learn­ing and ac­cu­ra­cy of physics-based mol­e­c­u­lar sim­u­la­tions, Schrödinger has a “pow­er­ful com­bi­na­tion” of tech­nolo­gies that al­lows it to crawl a vast chem­i­cal space to ar­rive at pre­cise an­swers, Farid tells me. The promise of bet­ter, new­er drug de­sign has en­ticed mul­ti­ple bio­phar­ma part­ners, while al­so lead­ing to the cre­ation of splashy star­tups like Nim­bus and Mor­phic Ther­a­peu­tics that have gone on to take ven­ture and deal lives of their own. Then there’s the joint ven­ture with WuXi AppTec, an at­tempt at mar­ry­ing its soft­ware with the glob­al CRO’s lead op­ti­miza­tion prowess an­nounced last Oc­to­ber.

Karen Akin­sanya

Schrödinger is now keen to ex­pand its in­ter­nal pipeline, con­tin­ue de­vel­op­ing the plat­form and ex­pand the busi­ness fol­low­ing the Se­ries E, which is al­so its first round fea­tur­ing in­sti­tu­tion­al back­ers. (David E. Shaw pro­vid­ed the Se­ries A, while Bill Gates sin­gle-hand­ed­ly cov­ered all three sub­se­quent rounds.) Crossover in­vestors are in the mix — a fact that should of­fer a clue of where the 29-year-old com­pa­ny is head­ed next, Farid says.

Where­as its ther­a­peu­tic fo­cus has his­tor­i­cal­ly ranged from an­ti­fun­gal and fi­bro­sis to meta­bol­ic dis­eases and type 2 di­a­betes, Schrödinger has spent the past year a half drilling down on on­col­o­gy, par­tic­u­lar­ly the repli­ca­tion stress re­sponse and DNA dam­age re­pair path­ways, says chief bio­med­ical of­fi­cer Karen Akin­sanya. A Mer­ck vet, Akin­sanya joined Schrödinger last year to over­see its in­ter­nal pro­grams.

For an idea on plat­form R&D, the com­pa­ny added:

The Schrödinger plat­form now can pre­dict po­ten­cy, sol­u­bil­i­ty and se­lec­tiv­i­ty with ex­per­i­men­tal ac­cu­ra­cy — in oth­er words, the atom­ic-lev­el mol­e­c­u­lar mod­el­ing in sil­i­co is as ef­fec­tive at as­sess­ing those prop­er­ties as syn­the­siz­ing the com­pound in the lab. And it’s far, far quick­er and cheap­er. Schrödinger is com­mit­ted to con­tin­ued R&D to keep ex­pand­ing the range of prop­er­ties its plat­form can as­sess with this de­gree of ac­cu­ra­cy.

You can ex­pect more col­lab­o­ra­tions to come. There’s no word on new star­tups yet.

The new in­vestors join a mar­quee hon­or roll that in­cludes the Bill and Melin­da Gates Foun­da­tion Trust, WuXi AppTec’s Cor­po­rate Ven­ture Fund, Deer­field Man­age­ment, Baron, Qim­ing Ven­ture Part­ners and GV.

UP­DAT­ED: In sur­prise switch, Bris­tol-My­ers is sell­ing off block­buster Ote­zla, promis­ing to com­plete Cel­gene ac­qui­si­tion — just lat­er

Apart from revealing its checkpoint inhibitor Opdivo blew a big liver cancer study on Monday, Bristol-Myers Squibb said its plans to swallow Celgene will require the sale of blockbuster psoriasis treatment Otezla to keep the Federal Trade Commission (FTC) at bay.

The announcement — which has potentially delayed the completion of the takeover to early 2020 — irked investors, triggering the New York-based drugmaker’s shares to tumble Monday morning in premarket trading.

Celgene’s Otezla, approved in 2014 for psoriasis and psoriatic arthritis, is a rising star. It generated global sales of $1.6 billion last year, up from the nearly $1.3 billion in 2017. Apart from the partial overlap of Bristol-Myers injectable Orencia, the company’s rival oral TYK2 psoriasis drug is in late-stage development, after the firm posted encouraging mid-stage data on the drug, BMS-986165, last fall. With Monday’s decision, it appears Bristol-Myers is favoring its experimental drug, and discounting Otezla’s future.

The move blindsided some analysts. Credit Suisse’s Vamil Divan noted just days ago:

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Novotech CEO Dr. John Moller

Novotech CRO Award­ed Frost & Sul­li­van Best Biotech CRO Asia-Pa­cif­ic 2019

Known in the in­dus­try as the Asia-Pa­cif­ic CRO, Novotech is now lead CRO ser­vices provider for the grow­ing num­ber of in­ter­na­tion­al biotechs se­lect­ing the re­gion for their stud­ies.

Re­flect­ing this Asia-Pa­cif­ic growth, Novotech staff num­bers are up 20% since De­cem­ber 2018 to 600 in-house clin­i­cal re­search peo­ple across a full range of ser­vices, across the re­gion.

Novotech’s ca­pa­bil­i­ties have been rec­og­nized by an­a­lysts like Frost & Sul­li­van, most re­cent­ly with the pres­ti­gious Asia-Pa­cif­ic CRO Biotech of the year award for best prac­tices in clin­i­cal re­search for biotechs for the fifth year. See oth­er awards here.

Fol­low­ing news of job cuts in Eu­ro­pean R&D ops, Sanofi con­firms it’s of­fer­ing US work­ers an 'ear­ly ex­it'

Ear­li­er in the week we learned that Sanofi was bring­ing out the bud­get ax to trim 466 R&D jobs in Eu­rope, re­tool­ing its ap­proach to car­dio as re­search chief John Reed beefed up their work in can­cer and gene ther­a­pies. And we’re end­ing the week with news that the phar­ma gi­ant has al­so been qui­et­ly re­duc­ing staff in the US, tar­get­ing hun­dreds of jobs as the com­pa­ny push­es vol­un­tary buy­outs with a fo­cus on R&D sup­port ser­vices.

Suf­fer­ing No­var­tis part­ner Cona­tus is pack­ing it in on NASH af­ter a se­ries of un­for­tu­nate tri­al events

The NASH par­ty is over at No­var­tis-backed Cona­tus. And this time they’re turn­ing off the lights.

More than 2 years af­ter No­var­tis sur­prised the biotech in­vest­ment com­mu­ni­ty with its $50 mil­lion up­front and promise of R&D sup­port to part­ner with the lit­tle biotech on NASH — ig­nit­ing a light­ning strike for the share price — Cona­tus $CNAT is back with the lat­est bit­ter tale to tell about em­ri­c­as­an, which once in­spired con­fi­dence at the phar­ma gi­ant.

Dean Hum. Nasdaq via YouTube

Gen­fit goes to Chi­na with a deal worth up to $228M for NASH drug

Fresh off the high of its Nas­daq IPO de­but, and the low of com­par­isons to Cymabay — whose NASH drug re­cent­ly stum­bled — Gen­fit on Mon­day un­veiled an up to $228 mil­lion deal with transpa­cif­ic biotech Terns Phar­ma­ceu­ti­cals to de­vel­op its flag­ship ex­per­i­men­tal liv­er drug — elafi­bra­nor — in Greater Chi­na.

The deal comes weeks af­ter Gen­fit $GN­FT is­sued a fiery de­fense of its dual PPAR ag­o­nist elafi­bra­nor, when com­peti­tor Cymabay’s PPARδ ag­o­nist, se­ladel­par, fiz­zled in a snap­shot of da­ta from an on­go­ing mid-stage tri­al. The main goal at the end of 12 weeks was for se­ladel­par to in­duce a sta­tis­ti­cal­ly sig­nif­i­cant im­prove­ment in liv­er fat con­tent, but da­ta showed that pa­tients on the place­bo ac­tu­al­ly per­formed bet­ter.

Alex­ion wins pri­or­i­ty re­view for Ul­tomiris' aHUS in­di­ca­tion; FDA ex­pands ap­proval of Ver­tex's Symdeko

→ Alex­ion $ALXN has scored a speedy re­view for Ul­tomiris for pa­tients with atyp­i­cal he­molyt­ic ure­mic syn­drome (aHUS) af­ter post­ing pos­i­tive da­ta from a piv­otal study in Jan­u­ary. The drug is the rare dis­ease com­pa­ny’s shot at pro­tect­ing its block­buster blood dis­or­der fran­chise that is cur­rent­ly cen­tered around its flag­ship drug, Soliris, which is a com­ple­ment in­hibitor typ­i­cal­ly ad­min­is­tered every two weeks. Ul­tomiris has a sim­i­lar mech­a­nism of ac­tion but re­quires less-fre­quent dos­ing — every eight weeks. The de­ci­sion date has been set to Oc­to­ber 19. Late last year, Ul­tomiris se­cured ap­proval for noc­tur­nal he­mo­glo­bin­uria (PNH) pa­tients.

Bet­ter than Am­bi­en? Min­er­va soars on PhI­Ib up­date on sel­torex­ant for in­som­nia

A month af­ter roil­ing in­vestors with what skep­tics dis­missed as cher­ry pick­ing of its de­pres­sion da­ta, Min­er­va is back with a clean slate of da­ta from its Phase IIb in­som­nia tri­al.

In a de­tailed up­date, the Waltham, MA-based biotech said sel­torex­ant (MIN-202) hit both the pri­ma­ry and sev­er­al sec­ondary end­points, ef­fec­tive­ly im­prov­ing sleep in­duc­tion and pro­long­ing sleep du­ra­tion. In­ves­ti­ga­tors made a point to note that the ef­fects were con­sis­tent across the adult and el­der­ly pop­u­la­tions, with the lat­ter more prone to the sleep dis­or­der.

Gene ther­a­py biotech sees its stock rock­et high­er on promis­ing re­sults for rare cas­es of but­ter­fly dis­ease

Shares of Krys­tal Biotech took off this morn­ing $KRYS af­ter the lit­tle biotech re­port­ed promis­ing re­sults from its gene ther­a­py to treat a rare skin dis­ease called epi­der­mol­y­sis bul­losa.

Fo­cus­ing on an up­date with 4 new pa­tients, re­searchers spot­light­ed the suc­cess of KB103 in clos­ing some stub­born wounds. Krys­tal says that of 4 re­cur­ring and 2 chron­ic skin wounds treat­ed with the gene ther­a­py, the KB103 group saw the clo­sure of 5. The 6th — a chron­ic wound, de­fined as a wound that had re­mained open for more than 12 weeks — was par­tial­ly closed. That brings the to­tal so far to 8 treat­ed wounds, with 7 clo­sures.

Ab­b­Vie gets a green light to re­sume re­cruit­ing pa­tients for one myelo­ma study — but Ven­clex­ta re­mains un­der a cloud

Three months af­ter reg­u­la­tors at the FDA forced Ab­b­Vie to halt en­rolling pa­tients in its tri­als of a com­bi­na­tion us­ing Ven­clex­ta (vene­to­clax) to treat drug-re­sis­tant cas­es of mul­ti­ple myelo­ma, the agency has green-light­ed the re­sump­tion of one of those stud­ies, while keep­ing the rest on the side­lines.

The CANO­VA (M13-494) study can now get back in busi­ness re­cruit­ing pa­tients to test the drug for a pop­u­la­tion that shares a par­tic­u­lar ge­net­ic bio­mark­er. To get that per­mis­sion, Ab­b­Vie — which is part­nered with Roche on this pro­gram — was forced to re­vise the pro­to­col, mak­ing un­spec­i­fied changes in­volv­ing risk mit­i­ga­tion mea­sures, pro­to­col-spec­i­fied guide­lines and an up­dat­ed fu­til­i­ty cri­te­ria.