Aeter­na Zen­taris claims it boot­ed CEO and then dis­cov­ered a plot to grab con­trol of its lead as­set

David Dodd

A few weeks af­ter Aeter­na Zen­taris’ lead drug Zop­trex flopped in a Phase III tri­al of en­dome­tri­al can­cer, the board and the CEO at the biotech were en­gaged in a bru­tal in­ter­nal bat­tle. On Ju­ly 20, CEO David Dodd was boot­ed for fail­ing to car­ry out the “ex­press di­rec­tives” of the board, the com­pa­ny says. And about a week lat­er, Aeter­na gen­er­al coun­sel Philip Theodore fol­lowed him out the ex­it.

That’s when the com­pa­ny $AEZS claims they found doc­u­ments out­lin­ing a plan to or­ches­trate a board takeover that would leave Dodd in con­trol of Macrilen, its failed growth hor­mone ther­a­py that has now been re­filed with the FDA for re­view af­ter it was re­ject­ed three years ago. And the biotech has filed a law­suit to pur­sue its claims and pre­vent any proxy fight.

In a blow-by-blow ac­count pro­vid­ed by the Charleston, SC-based com­pa­ny, the board claimed that in or be­fore June Dodd had plot­ted to trans­fer con­trol of Macrilen to Ri­versEdge BioVen­tures, LLC, or an­oth­er en­ti­ty he owned, af­ter the Zop­trex fail­ure had evis­cer­at­ed the com­pa­ny’s stock. Lat­er Dodd and Theodore al­leged­ly went to an ac­tivist in­vestor Graeme Rous­tan in pur­suit of a plan to take con­trol of the board.

Ac­cord­ing to a state­ment from the com­pa­ny to­day:

Their plans were on­ly un­cov­ered through an in­ves­ti­ga­tion fol­low­ing the ter­mi­na­tion of Mr. Dodd as CEO. Among oth­er things, the Board dis­cov­ered a doc­u­ment cre­at­ed by Mr. Theodore en­ti­tled “Out­line of Pro­posed Agree­ment with Graeme Rous­tan”, which de­tailed some of the par­tic­u­lars of how Messrs. Rous­tan, Theodore, and Dodd in­tend­ed to mount the proxy con­test.

We haven’t heard Dodd’s side of the sto­ry. Board chair Car­olyn Eg­berthair had this to say:

We are dis­mayed and ap­palled at the ac­tions of Mr. Dodd and Mr. Theodore and we are act­ing quick­ly and de­ci­sive­ly to pro­tect the in­ter­ests of our em­ploy­ees and share­hold­ers. In our Claim, we ask the Court to pre­vent Mr. Dodd and Mr. Theodore from us­ing or con­vey­ing the Com­pa­ny’s con­fi­den­tial in­for­ma­tion, in­clud­ing to seize con­trol of the Board through a proxy con­test. We refuse to al­low Mr. Dodd or Mr. Theodore to dis­rupt the Com­pa­ny’s fo­cused ef­fort in bring­ing Macrilen to mar­ket and max­i­miz­ing val­ue for all of our stake­hold­ers.

De­vel­op­ment of the Next Gen­er­a­tion NKG2D CAR T-cell Man­u­fac­tur­ing Process

Celyad’s view on developing and delivering a CAR T-cell therapy with multi-tumor specificity combined with cell manufacturing success
Transitioning potential therapeutic assets from academia into the commercial environment is an exercise that is largely underappreciated by stakeholders, except for drug developers themselves. The promise of preclinical or early clinical results drives enthusiasm, but the pragmatic delivery of a therapy outside of small, local testing is most often a major challenge for drug developers especially, including among other things, the manufacturing challenges that surround the production of just-in-time and personalized autologous cell therapy products.

Paul Hudson, Getty Images

UP­DAT­ED: Sanofi CEO Hud­son lays out new R&D fo­cus -- chop­ping di­a­betes, car­dio and slash­ing costs in com­pa­ny-wide re­org

Earlier on Monday, new Sanofi CEO Paul Hudson baited the hook on his upcoming strategy reveal tomorrow with a tell-tale deal to buy Synthorx for $2.5 billion. That fits squarely with hints that he’s pointing the company to a bigger future in oncology, which also squares with a major industry tilt.

In a big reveal later in the day, though, Hudson offered a slate of stunners, saying that the company is dropping cardio and diabetes research — which covers two of its biggest franchise arenas. Sanofi missed the boat on developing new diabetes drugs, and now it’s pulling out entirely. As part of the pullback, it’s dropping efpeglenatide, their once-weekly GLP-1 injection for diabetes.

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Roger Perlmutter, Merck

#ASH19: Here’s why Mer­ck is pay­ing $2.7B to­day to grab Ar­Qule and its next-gen BTK drug, lin­ing up Eli Lil­ly ri­val­ry

Just a few months after making a splash at the European Hematology Association scientific confab with an early snapshot of positive data for their BTK inhibitor ARQ 531, ArQule has won a $2.7 billion buyout deal from Merck.

Merck is scooping up a next-gen BTK drug — which is making a splash at ASH today — from ArQule in an M&A pact set at $20 a share $ARQL. That’s more than twice Friday’s $9.66 close. And Merck R&D chief Roger Perlmutter heralded a deal that nets “multiple clinical-stage oral kinase inhibitors.”

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Left top to right: Mark Timney, Alex Denner, Vas Narasimhan. (The Medicines Company, Getty, AP/Endpoints News)

In a play-by-play of the $9.7B Med­Co buy­out, No­var­tis ad­mits it over­paid while of­fer­ing a huge wind­fall to ex­ecs

A month into his tenure at The Medicines Company, new CEO Mark Timney reached out to then-Novartis pharma chief Paul Hudson: Any interest in a partnership?

No, Hudson told him. Not now, at least.

Ten months later, Hudson had left to run Sanofi and Novartis CEO Vas Narasimhan was paying $9.7 billion for the one-drug biotech – the largest in the string of acquisitions Narasimhan has signed since his 2017 appointment.

The deal was the product of an activist investor and his controversial partner working through nearly a year of cat-and-mouse negotiations to secure a deal with Big Pharma’s most expansionist executive. It represented a huge bet in a cardiovascular field that already saw two major busts in recent years and brought massive returns for two of the industry’s most eye-raising names.

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Paul Hudson. Sanofi

New Sanofi CEO Hud­son adds next-gen can­cer drug tech to the R&D quest, buy­ing Syn­thorx for $2.5B

When Paul Hudson lays out his R&D vision for Sanofi tomorrow, he will have a new slate of interleukin therapies and a synthetic biology platform to boast about.

The French pharma giant announced early Monday that it is snagging San Diego biotech Synthorx in a $2.5 billion deal. That marks an affordable bolt-on for Sanofi but a considerable return for Synthorx backers, including Avalon, RA Capital and OrbiMed: At $68 per share, the price represents a 172% premium to Friday’s closing.

Synthorx’s take on alternative IL-2 drugs for both cancer and autoimmune disorders — enabled by a synthetic DNA base pair pioneered by Scripps professor Floyd Romesberg — “fits perfectly” with the kind of innovation that he wants at Sanofi, Hudson said.

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Game on: Re­gen­eron's BC­MA bis­pe­cif­ic makes clin­i­cal da­ta de­but, kick­ing off mul­ti­ple myelo­ma matchup with Bris­tol-My­ers

As J&J attempts to jostle past Bristol-Myers Squibb and bluebird for a landmark approval of its anti-BCMA CAR-T — and while GlaxoSmithKline maps a quick path to the FDA riding on its own BCMA-targeting antibody-drug conjugates — the bispecifics are arriving on the scene to stake a claim for a market that could cross $10 billion per year.

The main rivalry in multiple myeloma is shaping up to be one between Regeneron and Bristol-Myers, which picked up a bispecific antibody to BCMA through its recently closed $74 billion takeover of Celgene. Both presented promising first-in-human data at the ASH 2019 meeting.

FDA lifts hold on Abeon­a's but­ter­fly dis­ease ther­a­py, paving way for piv­otal study

It’s been a difficult few years for gene and cell therapy startup Abeona Therapeutics. Its newly crowned chief Carsten Thiel was forced out last year following accusations of unspecified “personal misconduct,” and this September, the FDA imposed a clinical hold on its therapy for a form of “butterfly” disease. But things are beginning to perk up. On Monday, the company said the regulator had lifted its hold and the experimental therapy is now set to be evaluated in a late-stage study.

Roche faces an­oth­er de­lay in strug­gle to nav­i­gate Spark deal past reg­u­la­tors — but this one is very short

Roche today issued the latest in a long string of delays of its $4.3 billion buyout of Philadelphia-based Spark Therapeutics. The delay comes as little surprise — it is their 10th in as many months — as their most recent delay was scheduled to expire before a key regulatory deadline.

But it is notable for its length: 6 days.

Previous extensions had moved the goalposts by about 3 weeks to a month, with the latest on November 22 expiring tomorrow. The new delay sets a deadline for next Monday, December 16, the same day by which the UK Competition and Markets Authority has to give its initial ruling on the deal. And they already reportedly have lined up an OK from the FTC staff – although that’s only one level of a multi-step process.

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KalVis­ta's di­a­bet­ic mac­u­lar ede­ma da­ta falls short — will Mer­ck walk away?

Merck’s 2017 bet on KalVista Pharmaceuticals may have soured, after the UK/US-based biotech’s lead drug failed a mid-stage study in patients with diabetic macular edema (DME).

Two doses of the intravitreal injection, KVD001, were tested against a placebo in a 129-patient trial. Patients who continued to experience significant inflammation and diminished visual acuity, despite anti-VEGF therapy, were recruited to the trial. Typically patients with DME — the most frequent cause of vision loss related to diabetes — are treated with anti-VEGF therapies such as Regeneron’s flagship Eylea or Roche’s Avastin and Lucentis.