AlloVir rides IPO boom on first mar­ket day, soars af­ter bag­ging $276 mil­lion

Mass­a­chu­setts-based AlloVir hit Wall Street Thurs­day, join­ing the ranks of drug mak­ers to strike big in the 2020 IPO boom.

The biotech’s 16.3 mil­lion shares priced at $17 each — the mid­point of a $16 to $18 range — earn­ing $276 mil­lion. AlloVir, which sur­vived on most­ly grant mon­ey and was known as Vira­Cyte un­til last year, ini­tial­ly reg­is­tered for a $100 mil­lion IPO on Ju­ly 6. But in the foot­steps of oth­er phar­mas go­ing pub­lic for the first time this year, it up­sized by 1.5 mil­lion shares.

Shares $ALVR kept ris­ing through­out the day, clos­ing up 49.35% at $25.39.

Many have ben­e­fit­ed from the “his­toric” boom, in­clud­ing a col­lec­tive $772 mil­lion-plus haul last week by iTeos, Nurix, An­nex­on and In­ozyme, all of which priced at the high end or above their ex­pect­ed ranges.

The first signs of a boom ap­peared in Jan­u­ary, then gave way to a slow­er pe­ri­od as a re­sult of the Covid-19 pan­dem­ic. But a resur­gence is un­der­way — by June, all 23 new­ly pub­lic com­pa­nies priced above their mid­point or up­sized their of­fer­ing. SPACs (spe­cial pur­pose ac­qui­si­tion com­pa­nies) al­so played a part; they now rep­re­sent near­ly 35% of list­ings, as op­posed to 3% in 2014, the Nas­daq’s Jay Heller told End­points ear­li­er this month.

AlloVir launched from the Bay­lor Col­lege of Med­i­cine’s Cen­ter for Cell and Gene Ther­a­py in 2013, and was tapped by David Hal­lal last year to be El­e­vate­Bio’s first port­fo­lio com­pa­ny. The deal meant a $120 mil­lion round of fund­ing for AlloVir’s late-stage drug de­vel­op­ment.

Hal­lal owned 28.39%  of shares af­ter the of­fer­ing, ac­cord­ing to AlloVir’s S-1/A fil­ing. Vikas Sin­ha, Ans­bert Gadicke and Morana Jo­van-Em­biri­cos, all on El­e­vate­Bio’s board of di­rec­tors, owned 23.26%, 21.99%  and 25.36% re­spec­tive­ly.

The com­pa­ny will use its IPO funds to ad­vance its al­lo­gene­ic T cell ther­a­pies for treat­ing vi­ral dis­eases. Its cur­rent pro­grams span 12 dif­fer­ent virus­es, but the lead can­di­date, Vi­ra­lym-M, tar­gets BK virus, cy­tomegalovirus, ade­n­ovirus, Ep­stein-Barr virus, and hu­man her­pesvirus. The com­pa­ny has three Phase III piv­otal tri­als and three Phase II proof-of-con­cept tri­als for use of Vi­ra­lym-M in pe­di­atric and adult pa­tients planned for 2020 and 2021.

In a Phase II proof-of-con­cept tri­al of Vi­ra­lym-M in­clud­ing 58 par­tic­i­pants, 93% of stem cell trans­plant pa­tients who were in­fect­ed with tar­get virus­es showed a “clin­i­cal re­sponse,” ac­cord­ing to the S-1. The drug earned pri­or­i­ty med­i­cines (PRIME) des­ig­na­tion by the EMA to treat in­fec­tions caused by tar­get­ed virus­es in HSCT pa­tients, and re­gen­er­a­tive med­i­cine ad­vanced ther­a­py (RMAT) des­ig­na­tion by the FDA to treat he­m­or­rhag­ic cys­ti­tis caused by BKV in adults and chil­dren.

“While these des­ig­na­tions may not lead to a faster de­vel­op­ment process and do not in­crease the like­li­hood that a prod­uct can­di­date will re­ceive ap­proval from the FDA or EMA, we ex­pect that PRIME and RMAT des­ig­na­tions will re­sult in in­creased EMA and FDA in­ter­ac­tions to sup­port our de­vel­op­ment ef­forts and may en­able an ex­pe­dit­ed reg­u­la­to­ry re­view process,” AlloVir’s S-1 fil­ing states.

Oth­er drugs in the pipeline in­clude ALVR106 to treat res­pi­ra­to­ry syn­cy­tial virus, in­fluen­za, pelvic in­flam­ma­to­ry dis­ease and hu­man metap­neu­movirus; ALVR107 to treat he­pati­tis B; ALVR108 to treat hu­man her­pesvirus-8; and ALVR109 to treat SARS-CoV-2. AlloVir’s mech­a­nisms in­clude what CSO Ann Leen has called “an im­mune sys­tem in a dish”: virus-spe­cif­ic T cells from blood donors that are used to re­store im­mu­ni­ty in those with T cell de­fi­cien­cies.

Jan Hatzius (Photographer: Christopher Goodney/Bloomberg via Getty Images)

When will it end? Gold­man econ­o­mist gives late-stage vac­cines a good shot at tar­get­ing 'large shares' of the US by mid-2021 — but the down­side is daunt­ing

It took decades for hepatitis B research to deliver a slate of late-stage candidates capable of reining the disease in.

With Covid-19, the same timeline has devoured all of 5 months. And the outcome will influence the lives of billions of people and a multitrillion-dollar world economy.

Count the economists at Goldman Sachs as optimistic that at least one of these leading vaccines will stay on this furiously accelerated pace and get over the regulatory goal line before the end of this year, with a shot at several more near-term OKs. That in turn should lead to the production of billions of doses of vaccines that can create herd immunity in the US by the middle of next year, with Europe following a few months later.

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UP­DAT­ED: No­vavax her­alds the lat­est pos­i­tive snap­shot of ear­ly-stage Covid-19 vac­cine — so why did its stock briefly crater?

High-flying Novavax $NVAX became the latest of the Covid-19 vaccine players to stake out a positive set of biomarker data from its early-stage look at its vaccine in humans.

Their adjuvanted Covid-19 vaccine was “well-tolerated and elicited robust antibody responses numerically superior to that seen in human convalescent sera,” the company noted. According to the biotech:

All subjects developed anti-spike IgG antibodies after a single dose of vaccine, many of them also developing wild-type virus neutralizing antibody responses, and after Dose 2, 100% of participants developed wild-type virus neutralizing antibody responses. Both anti-spike IgG and viral neutralization responses compared favorably to responses from patients with clinically significant COVID‑19 disease. Importantly, the IgG antibody response was highly correlated with neutralization titers, demonstrating that a significant proportion of antibodies were functional.

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Lund­beck sounds taps on an­oth­er CNS drug, re­treat­ing from a mine field still oc­cu­pied by a Mer­ck team

Lundbeck has snipped another clinical-stage branch of its CNS research, dumping a schizophrenia program after determining that their therapy would have no positive influence on the disease.

Designed originally as a 240-patient study, researchers set out in early 2019 to see if a homegrown drug dubbed Lu AF11167 could make it through a proof-of-concept study. The drug is a PDE10Ai inhibitor, targeting an enzyme which it said at the time offered a new pathway to retuning the body’s neurotransmitter dopamine. The big idea was that by hitting their target, the drug would modulate “dopamine D1 and D2 receptor-mediated intraneuronal signaling without binding to these receptors,” influencing negative symptoms of schizophrenia.

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Sean Nolan and RA Session II

Less than 3 months af­ter launch, the AveX­is crew’s Taysha rais­es $95M Se­ries B. Is an IPO next?

The old AveXis team is moving quickly in Dallas.

Three months ago, they launched Taysha with $30 million in Series A funding and a pipeline of gene therapies out of UT Southwestern. Now, they’ve announced an oversubscribed $95 million Series B. And the biotech is declining all interview requests on the news, the kind of broad silence that can indicate an IPO is in the pipeline.

Biotechs, including those relatively fresh off launch, have been going public at a frenzy since the pandemic began. Investors have showed a willingness to put upwards of $200 million to companies that have yet to bring a drug into the clinic. Still, if Taysha were to go public in the near future, it would be perhaps the shortest path from launch to IPO in recent biotech memory.

Stéphane Bancel, Moderna CEO (Steven Ferdman/Getty Images)

Mod­er­na CEO Stéphane Ban­cel out­lines a prospec­tive moth­er­lode of Covid-19 vac­cine rev­enue — will a back­lash fol­low?

Moderna shows no sign of slowing down, or turning charitable when it comes to pricing supplies of its Covid-19 vaccine.

One of the leaders in the Phase III race to get a Covid-19 vaccine across the finish line in record time, Moderna says it’s on track to complete enrollment in one of the most avidly watched studies in the world next month. And the biotech has already banked some $400 million in deposits for vaccine supply as it works through negotiations with countries around the world — as CEO Stéphane Bancel sets out to hire a commercial team.

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Covid-19 roundup: J&J and BAR­DA agree to $1 bil­lion for 100 mil­lion dos­es; Plas­ma re­duces mor­tal­i­ty by 50% — re­ports

J&J has become the latest vaccine developer to agree to supply BARDA with doses of their Covid-19 vaccine, signing an agreement that will give the government 100 million doses in exchange for $1 billion in funding.

The agreement, similar to those signed by Novavax, Sanofi and AstraZeneca-Oxford, provides funding not only for individual doses but to help J&J ramp up manufacturing. Pfizer, by contrast, received $1.95 billion for the doses alone. Still, if one looked at each agreement as purchase amounts, J&J’s deal would be $10 per dose, slotting in between Novavax’s $16 per dose and AstraZeneca’s $4 per dose.

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J&J gets a fresh OK for es­ke­t­a­mine, but is it re­al­ly the game-chang­er for de­pres­sion Trump keeps tweet­ing about?

Backed by an enthusiastic set of tweets from President Trump and a landmark OK for depression, J&J scooped up a new approval from the FDA for Spravato today. But this latest advance will likely bring fresh scrutiny to a drug that’s spurred some serious questions about the data, as well as the price.

First, the approval.

Regulators stamped their OK on the use of Spravato — developed as esketamine, a nasal spray version of the party drug Special K or ketamine — for patients suffering from major depressive disorder with acute suicidal ideation or behavior.

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RA, No­var­tis back Gen­tiBio's seed round, plans to launch de­vel­op­ment of En­gTreg ther­a­pies

Boston, MA-based startup GentiBio landed a $20 million seed fund from three investors to dive into engineered regulatory T cell (EngTreg) development.

Marquee investors OrbiMed, Novartis Venture Fund and RA Capital Management have backed GentiBio’s mission to develop EngTregs for the treatment of autoimmune, alloimmune, autoinflammatory, and allergic diseases. Unlike other companies studying treatments using a patient’s own Tregs, GentiBio plans to make use of CD4+ immune cells, found in the blood.

Paul Laikind, ViaCyte CEO

Stem cell play­er Vi­a­Cyte ex­pands col­lab­o­ra­tion with Gore to de­vel­op sub­cu­ta­neous di­a­betes treat­ment

Longtime stem cell player ViaCyte has teamed up with a materials science company in an effort to solve immunosuppression challenges and advance its type 1 diabetes treatments.

Expanding on an existing collaboration, ViaCyte and W.L. Gore have agreed to combine the biotech’s PEC-Encap candidate with a Gore-produced membrane in what they hope will eliminate the need for immunosuppressive drugs. Such treatments have created foreign body responses in the past, and stamping these reactions out is the main goal, ViaCyte CEO Paul Laikind said.