Af­ter mega-round in­vest­ment, ADC Ther­a­peu­tics cans PhI tri­al in HER2

Af­ter rais­ing a $200 mil­lion mega-round just months ago, Swiss drug­mak­er ADC Ther­a­peu­tics is ax­ing one of its pro­grams due to tox­i­c­i­ty is­sues.

Jay Fein­gold

The cut drug pro­gram, called AD­CT-502, is one of the com­pa­ny’s sev­er­al an­ti­body-drug con­ju­gate (ADC) can­di­dates in de­vel­op­ment for sol­id and blood can­cers. The 502 drug was be­ing test­ed in a Phase I tri­al with pa­tients who have HER2-pos­i­tive can­cers. But as the com­pa­ny’s CMO Jay Fein­gold ex­plains it, the HER-2 tar­get­ed ADC wasn’t work­ing well enough in low dos­es, which is a prob­lem con­sid­er­ing the side ef­fects.

“Pyrroloben­zo­di­azepine dimers are ex­treme­ly po­tent and have a well char­ac­ter­ized safe­ty pro­file that in­cludes flu­id re­ten­tion and pul­monary ede­ma. For most PBD AD­Cs this can be man­aged by se­lect­ing dos­ing reg­i­mens that are ef­fi­ca­cious with man­age­able tox­i­c­i­ties. How­ev­er, dur­ing dose es­ca­la­tion in this tri­al we did not achieve the nec­es­sary ef­fi­ca­cy at tol­er­at­ed dos­es re­quired for pa­tient ben­e­fit.”

ADC Ther­a­peu­tics’ CEO Chris Mar­tin al­so not­ed that HER2 per­haps wasn’t the best tar­get for the com­pa­ny.

Chris Mar­tin

“Pa­tients with HER2 ex­press­ing tu­mors have mul­ti­ple ther­a­peu­tic op­tions in­clud­ing nov­el ther­a­pies in clin­i­cal de­vel­op­ment that are pro­duc­ing en­cour­ag­ing da­ta. ADC Ther­a­peu­tic’s strat­e­gy is to progress a deep pipeline of AD­Cs in­to Phase I in or­der to as­sess their clin­i­cal and mar­ket po­ten­tial based on ac­tu­al hu­man da­ta, and on­ly to progress in­to lat­er stage de­vel­op­ment those AD­Cs that demon­strate the po­ten­tial to be best in class in ar­eas of high un­met med­ical need.”

The com­pa­ny cur­rent­ly has three oth­er ADC pro­grams in the clin­ic and three more head­ing to the clin­ic with­in the next 9 months, and it’s stress­ing that 502’s fate won’t im­pact its oth­er can­di­dates. The com­pa­ny’s two lead pro­grams (402 and 301) saw pos­i­tive Phase I da­ta re­port­ed out in 2016.

That may or may not ease the wor­ries of in­vestors, who’ve backed the 6-year-old com­pa­ny with $455 mil­lion in to­tal cap­i­tal, in­clud­ing a $200 mil­lion mega-round re­port­ed in Oc­to­ber.

A New Fron­tier: The In­ner Ear

What happens when a successful biotech venture capitalist is unexpectedly diagnosed with a chronic, life-disrupting vertigo disorder? Innovation in neurotology.

That venture capitalist was Jay Lichter, Ph.D., and after learning there was no FDA-approved drug treatment for his condition, Ménière’s disease, he decided to create a company to bring drug development to neurotology. Otonomy was founded in 2008 and is dedicated to finding new drug treatments for the hugely underserved community living with balance and hearing disorders. Helping patients like Jay has been the driving force behind Otonomy, a company heading into a transformative 2020 with three clinical trial readouts: Phase 3 in Ménière’s disease, Phase 2 in tinnitus, and Phase 1/2 in hearing loss. These catalysts, together with others in the field, highlight the emerging opportunity in neurotology.
Otonomy is leading the way in neurotology
Neurotology, or the treatment of inner ear neurological disorders, is a large and untapped market for drug developers: one in eight individuals in the U.S. have moderate-to-severe hearing loss, tinnitus or vertigo disorders such as Ménière’s disease.1 With no FDA-approved drug treatments available for these conditions, the burden on patients—including social anxiety, lower quality of life, reduced work productivity, and higher rates of depression—can be significant.2, 3, 4

Af­ter 4 years of furor, the FTC and New York state ac­cuse Mar­tin Shkre­li of run­ning a drug mo­nop­oly. And this time they plan to squash it

Pharma bro Martin Shkreli was jailed, publicly pilloried and forced to confront some lawmakers in Washington riled by his move to take an old generic and move the price from $17.50 per pill to $750. But through 4 years of controversy and public revulsion, his company never backed away from the price — left uncontrolled by a laissez faire federal policy on a drug’s cost.

Now the FTC and the state of New York plan to pry his fingers off the drug once and for all and open it up to some cheap competition.

Patrik Jonsson, the president of Lilly Bio-Medicines

Who knew? Der­mi­ra’s board kept watch as its stock price tracked Eli Lil­ly’s se­cret bid­ding on a $1.1B buy­out

In just 8 days, from December 6 to December 14, the stock jumped from $7.88 to $12.70 — just under the initial $13 bid. There was no hard news about the company that would explain a rise like that tracking closely to the bid offer, raising the obvious question of whether insider info has leaked out to traders.

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Short at­tack­er Sahm Ad­ran­gi draws crosshairs over a fa­vorite of Sanofi’s new CEO — with PhII da­ta loom­ing

Sahm Adrang Kerrisdale

Kerrisdale chief Sahm Adrangi took a lengthy break from his series of biotech short attacks after his chief analyst in the field pulled up stakes and went solo. But he’s making a return to drug development this morning, drawing crosshairs over a company that’s one of new Sanofi CEO Paul Hudson’s favorite collaborators.

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UP­DAT­ED: Ac­celeron of­fers thumbs up on a PhII suc­cess for would-be block­buster drug — and shares rock­et up

There’s no public data yet, but Acceleron $XLRN says that its first major trial readout of 2020 is a success.

In a Phase II study of 106 patients with pulmonary arterial hypertension (PAH), Acceleron’s experimental drug sotatercept hit its primary endpoint: a significant reduction in pulmonary vascular resistance. The drug also met three different secondary endpoints, including the 6-minute walking test.

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Civi­ca and Blue Cross Blue Shield launch new ven­ture to low­er gener­ic prices

Five years after Martin Shkreli put a smug face to the volatile prices companies can charge even for generic drugs, payers and governments are coming up with outside-the-box solutions.

The latest fix is a new venture from the Blue Cross Blue Shield Association, 18 of its members and Civica, the generics company founded in 2018 by hospitals fed up with high prices for drugs that had long-since lost patent protection. While Civica focused on drugs that hospitals purchased, the new company will aim to lower prices on drugs that, like Shkreli’s Daraprim, are purchased by individuals.

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Merck Invests in State-Of-The-Art Biotech Development Facility in Switzerland

Mer­ck KGaA match­es lofty R&D goals with €250M in­vest­ment in­to a new clin­i­cal man­u­fac­tur­ing site in Switzer­land

As Merck KGaA strives to prove itself as a capable biopharma R&D player, it has begun construction on a €250 million facility dedicated to developing and manufacturing drugs for use in clinical trials.

The German drugmaker chose a location at Corsier-sur-Vevey, Switzerland, where it already has a commercial manufacturing site, in order to “bridge together research and manufacturing.”

“This investment in the Merck Biotech Development Center reflects our commitment to speed up the availability of new medicines for patients in need, and confirms the importance of Switzerland as our prime hub for the manufacturing of biotech medicines,” CEO Stefan Oschmann said at the groundbreaking ceremony, according to a statement.

Breast can­cer ap­proval in tow, As­traZeneca, Dai­ichi armed an­ti­body scores in key gas­tric can­cer study

AstraZeneca kicked off Monday with a flurry of good news. Apart from unveiling positive results on its stroke trial testing its clot-fighter Brilinta, and welcoming its experimental IL-23 inhibitor brazikumab back from Allergan — the British drugmaker also disclosed some upbeat gastric cancer data on its HER2-positive oncology therapy it is collaborating on with Daiichi Sankyo.

Buoyed by the performance of its oncology drugs, last March AstraZeneca chief Pascal Soriot bet big to partner with Daiichi on the cancer drug, with $1.35 billion upfront in a deal worth up to roughly $7 billion. Roughly 8 months later, as 2019 drew to a close, the FDA swiftly approved the drug — trastuzumab deruxtecan — for use in breast cancer, months ahead of the expected decision date.

Sor­ren­to shrugs off an anony­mous pri­vate eq­ui­ty group’s $1B of­fer to buy the com­pa­ny

San Diego-based Sorrento Therapeutics isn’t going the M&A route — at least not today.

The biotech caused quite a stir when it put out word a few weeks ago that an unidentified private equity group was bidding a billion dollars-plus for the company. The news drove a quick spike in the company’s share price as investors hooked up for the ride — that didn’t happen.

The update sparked a 5% drop in the share price $SRNE ahead of the bell. It’s now trading just above $4, without any evidence that the $7 price looked like it was firm.