An­dreessen drums up a $450M fund to back their vi­sion for en­gi­neer­ing bi­ol­o­gy

Im­age: Vi­jay Pande, An­dreessen Horowitz.


An­dreessen Horowitz be­lieves that AI and ma­chine learn­ing are cre­at­ing a new biotech world with a lot less guess­work in­volved. And to­day they have a fresh $450 mil­lion fund to in­vest in the emerg­ing field.

Jorge Conde

Two years ago, Stan­ford’s Vi­jay Pande took the first step with a $200 mil­lion in­au­gur­al fund. Then a few months ago Jorge Conde joined as a new part­ner in the small group, sig­nal­ing to­day’s an­nounce­ment. Conde jumped to An­dreessen from Sy­ros, where he was chief strat­e­gy of­fi­cer. And he got out just ahead of a dis­as­trous pre­sen­ta­tion a few days ago at ASH on weak re­sults for their lead drug, which tanked the stock.

The part­ners told TechCrunch that they have the same ba­sic strat­e­gy for this new fund, in­vest­ing $2 mil­lion or $3 mil­lion in promis­ing seed com­pa­nies and up­ping that to the $5 mil­lion to $10 mil­lion mark for the launch round in search of en­gi­neered prod­ucts.

In a blog post, they ex­plained their vi­sion of the new world ahead, and the in­spi­ra­tion be­hind their in­vest­ment strat­e­gy.

To hear them tell it, ma­chine learn­ing holds the key to a much more ra­tio­nal biotech world, where com­pu­ta­tion­al pow­er will be able to point pre­cise­ly to ther­a­peu­tic and re­lat­ed break­throughs. Pande has been do­ing some of the work at Stan­ford, where he’s been ex­per­i­ment­ing with us­ing da­ta points to pre­dict tox­i­col­o­gy for drugs. The in­tu­itive as­pect of drug de­vel­op­ment, based on years in the lab, he be­lieves will fade away.

From their blog:

We’ve made 12 in­vest­ments to date, span­ning ear­ly de­tec­tion of can­cer, heart dis­ease, and longevi­ty to pa­tient co­or­di­na­tion and ad­vances in food sci­ence re­mov­ing the need for pes­ti­cides while in­creas­ing shelf life. What they all share in com­mon — what we look for — is some­thing that came in to ac­cel­er­ate the in­dus­try, much like Moore’s Law did for com­put­ing… and for the a16z bio funds, that some­thing is the abil­i­ty to en­gi­neer bi­ol­o­gy. This is the point at which bio ad­vances be­yond em­piri­cism — time-con­sum­ing, in­com­plete, un­pre­dictable — and be­comes more of an en­gi­neered dis­ci­pline, al­low­ing us to plan along a roadmap, make in­cre­men­tal in­no­va­tions, and progress in a very sys­tem­at­ic way. It’s the point at which you can build a vi­able, scal­able com­pa­ny, not just a re­search project.

To be sure, they’re back­ing small steps in that di­rec­tion right now.

An­dreessen’s in­vest­ments so far span com­pa­nies like Freenome — a liq­uid biop­sy di­ag­no­sis tech — and Car­dio­gram’s app to de­tect atri­al fib­ril­la­tion us­ing the da­ta gath­ered by an Ap­ple watch. Apeel is de­vel­op­ing a nat­ur­al coat­ing to ex­tend the shelf life of food. Pa­tient­Ping keeps physi­cians up­dat­ed on all the var­i­ous points of care their pa­tients use.

That leaves a wide health­care scope for these two as the pi­o­neers in AI and ma­chine learn­ing ramp up new biotech projects.

Nick Galakatos, Blackstone global head of life sciences

Nick Galakatos and the Black­stone team now have a record $4.6B to in­vest in bio­phar­ma, with a big fo­cus on push­ing com­pa­nies over the top

Nick Galakatos and his team at Blackstone Life Sciences have seen their biggest opportunities swell up in mostly established players who don’t have all the money they need to accomplish everything on the to-do list. And right now, with the industry booming, that’s a long list with some hefty needs.

The Blackstone team has neatly tied up the largest private fund ever raised in life sciences for making big dreams come true in biopharma. Late Thursday, Blackstone put out word that they had closed their highly anticipated fund with the projected $4.6 billion all in.

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UP­DAT­ED: Bio­gen shares spike as ex­ecs com­plete a de­layed pitch for their con­tro­ver­sial Alzheimer's drug — the next move be­longs to the FDA

Biogen is stepping out onto the high wire today, reporting that the team working on the controversial Alzheimer’s drug aducanumab has now completed their submission to the FDA. And they want the agency to bless it with a priority review that would cut the agency’s decision-making time to a mere 6 months.

The news drove a 10% spike in Biogen’s stock $BIIB ahead of the bell.

Part of that spike can be attributed to a relief rally. Biogen execs rattled backers and a host of analysts earlier in the year when they unexpectedly delayed their filing to the third quarter. That delay provoked all manner of speculation after CEO Michel Vounatsos and R&D chief Al Sandrock failed to persuade influential observers that the pandemic and other factors had slowed the timeline for filing. Actually making the pitch at least satisfies skeptics that the FDA was not likely pushing back as Biogen was pushing in. From the start, Biogen execs claimed that they were doing everything in cooperation with the FDA, saying that regulators had signaled their interest in reviewing the submission.

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Gilead boasts of pos­i­tive remde­sivir da­ta on mor­tal­i­ty — but their analy­sis pro­vokes the skep­tics

Gilead is surging again off data that suggest its antiviral remdesivir might improve survival.

The new data come from an analysis Gilead conducted comparing the death rate and recovery time of patients in one of its remdesivir trials to a group of 800 patients “with similar baseline characteristics and disease severity” who received only standard-of-care around the same time. The result, they said, suggested that patients who received remdesivir had a 62% better chance at surviving than those who did not.

Hal Barron, GSK

Win or lose on the mar­ket­ing OK, the FDA just gunned down GSK’s bright hopes for their BC­MA ther­a­py

The FDA’s ODAC — the Oncologic Drugs Advisory Committee — has a well-known bias in favor of adding new cancer drugs to the market, even if efficacy is at best marginal and serious safety issues demand careful management.

Doctors want as many arrows in their quiver as they can get. And when patients are dying after failing multiple drugs, why not give it a go one more time?

GlaxoSmithKline, though, is about to test out how their new BCMA antibody drug conjugate belantamab mafodotin can do after being mauled in an in-house FDA review, ahead of the Tuesday expert panel discussion. Even if the agency goes ahead with an expected green light, this drug will likely be constrained to a small niche — icing any plans they may have for making waves in oncology anytime soon.

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Covid-19 roundup: BioN­Tech go­ing head-to-head with Mod­er­na as PhI­II mR­NA launch looms; Tri­al on Shin­zo Abe’s once-fa­vorite an­tivi­ral is in­con­clu­sive

It’s a race to the Phase III finish line now for the 2 leading mRNA vaccines in the pipeline for Covid-19.

BioNTech chief Ugur Sahin told the Wall Street Journal that his company will start Phase III testing of their vaccine later this month, setting them up to lateral the data to regulators before the end of this year.

That puts them essentially on the exact same schedule as Moderna is dedicated to. The Massachusetts rival to BioNTech also expects to launch Phase III this month. Lots of rumors have circulated about delays and conflict among the scientists advancing the Moderna jab, but the biotech has consistently stuck to its plan to start a late-stage pivotal this month.

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Stephan Christgau, Amanda Hayward, Andreas Segerros and Magnus Persson (Eir Ventures)

A new ven­ture fund amid a pan­dem­ic? In the Nordics? Eir Ven­tures brings it on with €76M first close

From Pharmacia and Lundbeck to Novo Nordisk and AstraZeneca, the Nordic countries have been the birthplace for some legacy pharma companies. But for all that history and reputation, Stephan Christgau counts only five specialized life science investors backing biotechs today.

That leaves plenty of room for Eir Ventures, a brand new venture fund Christgau — one of the founders of Novo Seeds — is launching with three other veteran VCs.

Regeneron CEO Leonard Schleifer speaks at a meeting with President Donald Trump, members of the Coronavirus Task Force, and pharmaceutical executives in the Cabinet Room of the White House (AP Photo/Andrew Harnik)

OWS shifts spot­light to drugs to fight Covid-19, hand­ing Re­gen­eron $450M to be­gin large scale man­u­fac­tur­ing in the US

The US government is on a spending spree. And after committing billions to vaccines defense operations are now doling out more of the big bucks through Operation Warp Speed to back a rapid flip of a drug into the market to stop Covid-19 from ravaging patients — possibly inside of 2 months.

The beneficiary this morning is Regeneron, the big biotech engaged in a frenzied race to develop an antibody cocktail called REGN-COV2 that just started a late-stage program to prove its worth in fighting the virus. BARDA and the Department of Defense are awarding Regeneron a $450 million contract to cover bulk delivery of the cocktail starting as early as late summer, with money added for fill/finish and storage activities.

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Atul Deshpande, Harbour BioMed chief strategy officer & head, US operations (Harbour BioMed)

An­oth­er biotech IPO set-up? Multi­na­tion­al biotech leaps from round to round, scoop­ing up cash at a blis­ter­ing pace

A short four months after announcing a $75 million haul in Series B+ fundraising, the multinational biotech Harbour BioMed pulled in another round of investments and eclipsed the nine-digit mark in the process.

Harbour completed its Series C financing, the company announced Thursday morning, raising $102.8 million and bringing its total investment sum to over $300 million since its founding in late 2016. The biotech plans to use the money to transition early-stage candidates from the discovery phase, fund candidates already in the clinic, and prep late-stage candidates for commercialization.

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An­oth­er four biotechs scratch out the first num­ber and ask for more as IPO boom con­tin­ues

Four more biotechs are raising their offers in an already record year for biotech IPOs.

Softbank-backed Relay Therapeutics scratched out its original $200 million filing and proposed a $250 million raise that would make them a $1.5 billion company. CAR-T developer Poseida Therapeutics bumped itself up $74 million to $224 million. Off-the-shelf cell therapy startup Nkarta upped from $150 million to $215 million — and then priced even higher, at $252 million. France’s Inventiva did its own modest reset, raising its bar from $102 million to $108 million.