Af­ter a 6-month romp, Arie Bellde­grun and David Chang fly a $100M-plus IPO for off-the-shelf CAR-T play­er Al­lo­gene

Back in ear­ly April, Arie Bellde­grun and David Chang were just get­ting start­ed when they rolled out news of a $300 mil­lion round for a start­up com­pa­ny called Al­lo­gene and their deal to take over Pfiz­er’s R&D group and pipeline fo­cused on de­vel­op­ing the world’s first off-the-shelf CAR-Ts.

Arie Bellde­grun

An­oth­er $120 mil­lion flowed in just a few days ago.

Along the way, the crew found time to write an S-1 with $100 mil­lion pen­ciled in for the next raise, look­ing to take the fund­ing past a half bil­lion dol­lars in 6 months time.

They’ll need it. By the end of June, they had spent $137 mil­lion — $111 mil­lion of that reg­is­tered as an ac­count­ing ex­pense for the as­set ac­qui­si­tion — while tak­ing a sub­let from Pfiz­er. In Au­gust, the S-1 says they land­ed a lease on a new head­quar­ters space in South San Fran­cis­co, a boom­ing biotech hub that has at­tract­ed scores of star­tups that want to be with­in a short dri­ve of Genen­tech. And the plan is to go ear­ly in build­ing a new man­u­fac­tur­ing op­er­a­tion — which won’t be cheap.

They’re mov­ing in­to the old Ex­elix­is build­ing at 210 East Grand.

Bellde­grun and Chang have done it all be­fore, but in noth­ing like the speed they’re trav­el­ing now. The pair built Kite from the ground up and sold it to Gilead for $12 bil­lion, giv­ing both a per­son­al for­tune — part of which Bellde­grun has rein­vest­ed back in­to his new VC Vi­da Ven­tures, an in­vestor in Al­lo­gene.

David Chang

This time, they’re out to re­place per­son­al­ized CAR-T — which re­lies on cells ex­tract­ed from pa­tients, then weaponized and in­fused back in to fight can­cer — with an in­dus­tri­al­ized ap­proach that would al­low for a one-size-fits-all tech­nol­o­gy.

The most ad­vanced pro­gram they have in the clin­ic — UCART19 — is man­aged by their part­ner Servi­er. Ac­cord­ing to the lat­est da­ta they have from ear­ly stage work on ALL:

As of April 2018, 13 out of 16 evalu­able pa­tients, or 81%, achieved a com­plete re­sponse (CR) and 12 of those pa­tients, or 92%, achieved a min­i­mum resid­ual dis­ease neg­a­tive CR (MRD- CR). The most com­mon ad­verse events were re­lat­ed to cy­tokine re­lease syn­drome (CRS) and were gen­er­al­ly man­age­able. Two mild graft-ver­sus-host dis­ease (GvHD) cas­es in the skin were ob­served and re­solved. We ex­pect UCART19 to be ad­vanced to po­ten­tial reg­is­tra­tional tri­als in the sec­ond half of 2019.

An IND is on its way next year for AL­LO-501 in NHL and AL­LO-715, tar­get­ing BC­MA for the treat­ment of pa­tients with drug re­sis­tant mul­ti­ple myelo­ma.

Bellde­grun has re­served 14% of the shares, while Chang has a 5% stake. The in­vestors are topped by TPG Carthage Hold­ings at 25.1% and Pfiz­er, which got 24% for the pro­gram. They’re fol­lowed by Gilead, which has an 8.4% stake.

The com­pa­ny plans to trade as $AL­LO.

Tower Bridge in London [Shutterstock]

#UK­BIO19: Join GSK’s Hal Bar­ron and a group of top biotech ex­ecs for our 2nd an­nu­al biotech sum­mit in Lon­don

Over the past 10 years I’ve made a point of getting to know the Golden Triangle and the special role the UK biopharma industry plays there in drug development. The concentration of world class research institutes, some of the most accomplished scientists I’ve ever seen at work and a rising tide of global investment cash leaves an impression that there’s much, much more to come as biotech hubs are birthed and nurtured.

Deborah Dunsire. Lundbeck

UP­DAT­ED: Deb­o­rah Dun­sire is pay­ing $2B for a chance to leap di­rect­ly in­to a block­buster show­down with a few of the world's biggest phar­ma gi­ants

A year after taking the reins as CEO of Lundbeck, Deborah Dunsire is making a bold bid to beef up the Danish biotech’s portfolio of drugs in what will likely be a direct leap into an intense rivalry with a group of giants now carving up a growing market for new migraine drugs.

Bright and early European time Monday morning the company announced that it will pay up to about $2 billion to buy Alder, a little biotech that is far along the path in developing a quarterly IV formulation of a CGRP drug aimed at cutting back the number of crippling migraines patients experience each month. In a followup call, Dunsire also noted that the company will likely need 200 to 250 reps for this marketing task on both sides of the Atlantic. And analysts were quick to note that the dealmaking at Lundbeck isn’t done, with another $2 billion to $3 billion available for more deals to beef up the pipeline.

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It’s fi­nal­ly over: Bio­gen, Ei­sai scrap big Alzheimer’s PhI­I­Is af­ter a pre­dictable BACE cat­a­stro­phe rais­es safe­ty fears

Months after analysts and investors called on Biogen and Eisai to scrap their BACE drug for Alzheimer’s and move on in the wake of a string of late-stage failures and rising safety fears, the partners have called it quits. And they said they were dropping the drug — elenbecestat — after the independent monitoring board raised concerns about…safety.

We don’t know exactly what researchers found in this latest catastrophe, but the companies noted in their release that investigators had determined that the drug was flunking the risk/benefit analysis.

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Scott Got­tlieb has a new board po­si­tion to add to the re­sume — and this one is fo­cused on a fa­vorite sub­ject

Scott Gottlieb has another position to add to his lengthy roster of boards and advisory roles in the wake of his departure from the helm of the FDA.

He’ll be joining the advisory board of FasterCures, a think tank which former junk bond king Michael Milken set up to help drive more drugs to the market, looking to accelerate drug R&D. That’s a subject close to the heart of Gottlieb, who blazed a trail at the FDA focused on hustling up the process. That helped endear him to the industry, making him one of the most popular commissioners in FDA history.

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Karyopharm lines up $150 mil­lion cash in­jec­tion to back con­tro­ver­sial drug launch

Karyopharm has entered into a royalty agreement worth up to $150 million to back the launch of their multiple myeloma drug — recently approved by the FDA over the objections of a majority of the agency’s outside experts.

The deal with HealthCare Royalty Partners, worth $75 million now and $75 million once certain regulatory and commercial milestones have been reached, will fund the commercialization of Karyopharm’s oral SINE compound Xpovio (selinexor) for patients with multiple myeloma who have already had at least four prior therapies. The money will help Karyopharm as it markets its newly approved drug and pushes through clinical trials testing the drug on refractory multiple myeloma patients with one to three therapies and patients with treatment-resistant diffuse large B-cell lymphoma. It will give Karyopharm a cushion through mid-2021.

Af­ter a run of CT­LA-4 com­bo fail­ures, sci­en­tists spot­light a way to make it work — in se­lect pa­tients

CTLA-4/PD-(L)1 combinations have been one of the El Dorados of oncology, its promise forever behind that next hill but apparently unattainable after a series of pivotal clinical failures. But researchers at New York’s Memorial Sloan Kettering Cancer Center and the Technical University of Munich think they may know how to fix what’s wrong and boost the drive to next-gen cancer combos.

In a preclinical animal research program, researchers found that within a cell, checkpoints rely on a specific molecule — RNA-sensing molecule RIG-I — to work. If that sounds familiar, it’s because it has already been identified as a target for boosting immune responses and was subject to at least one Phase I/II trial. Pfizer in December allied itself with Kineta with $15 million upfront and $505 million in potential milestones to develop RIG-I immunotherapies, and three years ago Merck purchased German upstart Rigontec for $137 million upfront and over $400 million in potential milestones for the same purpose.

Pur­due Phar­ma files for bank­rupt­cy as first step in $10B opi­oid set­tle­ment

It’s settled. Purdue Pharma has filed for bankruptcy as part of a deal that would see the OxyContin maker hand over $10 billion in cash and other contributions to mitigate the opioid crisis — without acknowledging any wrongdoing in the protracted epidemic that’s resulted in hundreds of thousands of deaths.

The announcement came two weeks after news of a proposed settlement surfaced and largely confirm what’s already been reported.

Lisa M. DeAngelis, MSKCC

MSK picks brain can­cer ex­pert Lisa DeAn­ge­lis as its next CMO — fol­low­ing José Basel­ga’s con­tro­ver­sial ex­it

It’s official. Memorial Sloan Kettering has picked a brain cancer expert as its new physician-in-chief and CMO, replacing José Baselga, who left under a cloud after being singled out by The New York Times and ProPublica for failing to properly air his lucrative industry ties.

His replacement, who now will be in charge of MSK’s cutting-edge research work as well as the cancer care delivered by hundreds of practitioners, is Lisa M. DeAngelis. DeAngelis had been chair of the neurology department and co-founder of MSK’s brain tumor center and was moved in to the acting CMO role in the wake of Baselga’s departure.

Penn team adapts CAR-T tech, reengi­neer­ing mouse cells to treat car­diac fi­bro­sis

After establishing itself as one of the pioneer research centers in the world for CAR-T cancer therapies, creating new attack vehicles to eradicate cancer cells, a team at Penn Medicine has begun the tricky transition of using the basic technology for heart repair work.

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