An­oth­er an­tibi­ot­ic mak­er bites the dust, as Tetraphase is swal­lowed for cheap

Some four years af­ter it re­port­ed its first batch of piv­otal tri­al da­ta, Tetraphase fi­nal­ly se­cured FDA ap­proval for its lead an­tibi­ot­ic, er­ava­cy­cline, for com­pli­cat­ed in­tra-ab­dom­i­nal in­fec­tions in 2018. But like many of its peers, mere­ly se­cur­ing ap­proval was on­ly the first hur­dle.

The big­ger ob­sta­cle was reap­ing the re­turns in a “bro­ken” mar­ket for an­tibi­otics. On Mon­day, the Mass­a­chu­setts-based com­pa­ny said it was be­ing ac­quired by Acel­Rx in an all-stock deal val­ued at a pal­try $14.4 mil­lion.

In 2019, the drug — brand­ed as Xer­a­va — gen­er­at­ed a mere $3.6 mil­lion in net sales. Tetraphase, like Achao­gen and Melin­ta, saw its val­ue go up in smoke as fee­ble sales frus­trat­ed growth. On Au­gust 27, 2018, when the com­pa­ny an­nounced Xer­a­va’s ap­proval, its stock $TTPH was val­ued at $61.40. On Fri­day, the com­pa­ny’s shares closed at $1.45.

The Acel­Rx buy­out saw the stock plum­met fur­ther in­to pen­ny stock ter­ri­to­ry — the shares were trad­ing at 87 cents on Mon­day morn­ing.

Un­der the deal, Tetraphase stock­hold­ers will re­ceive 0.6303 of an Acel­Rx share for each share of Tetraphase com­mon stock, as well as one con­tin­gent val­ue right (CVR), which would en­ti­tle the hold­ers to re­ceive ag­gre­gate pay­ments of up to $12.5 mil­lion for Xer­a­va net sales mile­stones start­ing in 2021.

The deal, which comes about two months af­ter the com­pa­ny raised about $17.5 mil­lion in a pub­lic fi­nanc­ing, was ap­proved by both sets of share­hold­ers and is ex­pect­ed to close in the sec­ond quar­ter.

As it stands, the an­tibi­ot­ic mar­ket is cursed — it har­bors the stink of mul­ti­ple bank­rupt­cies, a dearth of in­no­va­tion and is con­se­quent­ly bare­ly whet­ting the vo­ra­cious ap­petites of Big Phar­ma or ven­ture cap­i­tal­ists. The Tetraphase an­nounce­ment comes less than a month af­ter bank­rupt an­tibi­ot­ic com­pa­ny Ar­a­digm turned to old part­ner/in­vestor Gri­fols for a fi­nal $3 mil­lion fire sale.

Un­lock­ing ESG strate­gies for growth with Gilead Sci­ences

RBC Capital Markets explores what is material in ESG for biopharma companies with the ESG leads at Gilead Sciences. Gilead has long focused on sustainability but recognized a more robust framework was needed. Based on a materiality assessment, Gilead’s ESG strategy today focuses first on drug access and pricing, while also addressing D&I and climate change. Find out why Gilead’s board is “acutely aware” of the contribution that ESG makes to firm’s overall success.

On the hunt for the next Mod­er­na, in­vestors have pumped 'plat­form plays' with cash. Can any­thing slow the run­away train?

It didn’t take an expert to see that mRNA platforms could be huge.

Julie Sunderland partnered with both Moderna and BioNTech about a decade ago while she was running program-related investments for the Bill & Melinda Gates Foundation — and even then the potential for their platforms was obvious despite some well-founded concerns about whether the next-gen tech would ever cross the finish line.

Endpoints Premium

Premium subscription required

Unlock this article along with other benefits by subscribing to one of our paid plans.

Sen. Ron Wyden (D-OR) with reporters in the Senate Subway (Graeme Sloan/Sipa via AP Images)

Top Wyden pri­or­i­ty for drug price re­forms: Medicare ne­go­ti­a­tions

As the Biden administration tries to wrangle the details of its infrastructure bill, Senate Finance Committee Chair Ron Wyden (D-OR) took a concrete step forward on drug pricing reforms on Tuesday and unveiled five principles for such reforms, including providing Medicare with the ability to negotiate prices.

“Allowing the Secretary of HHS to negotiate the price Medicare will pay creates a much needed mechanism to achieve fairer prices when the market has failed to do so,” Wyden wrote.

Emma Walmsley, GlaxoSmithKline CEO (Credit: Fang Zhe/Xinhua/Alamy Live News)

Ac­tivist in­vestor El­liott in talks with oth­er Glax­o­SmithK­line in­vestors about re­plac­ing Em­ma Walm­s­ley, spin­ning off vac­cine busi­ness — re­port

As Emma Walmsley reveals details this Wednesday about the upcoming split of GlaxoSmithKline’s pharma and consumer units, some tough questions may be coming her way.

Elliott Management, the activist investor that’s previously threatened an attack on GSK (but eventually backed off), is floating more radical changes like replacing the CEO, further breaking up the company and spinning out the vaccine unit, or reviewing the focus on cancer drugs, the Financial Times reported.

Endpoints News

Keep reading Endpoints with a free subscription

Unlock this story instantly and join 109,900+ biopharma pros reading Endpoints daily — and it's free.

Ken Frazier, Merck CEO (Bess Adler/Bloomberg via Getty Images)

Mer­ck­'s Keytru­da blazes a path in first-line cer­vi­cal can­cer, mak­ing good on drug­mak­er's push for ear­li­er pa­tients

In the years since I/O wonder drug Keytruda’s initial approval, Merck has struck an aggressive clinical trial program, which is now firmly focused on earlier lines of therapy. The drugmaker has scored some success there so far, and now it’s earned one of its biggest wins yet.

Keytruda plus chemotherapy with or without background Avastin significantly extended patients’ lives over those dosed with a placebo control in first-line patients with persistent, recurrent or metastatic cervical cancer, according to top-line data from the Phase III KEYNOTE-826 study revealed Tuesday.

Endpoints News

Keep reading Endpoints with a free subscription

Unlock this story instantly and join 109,900+ biopharma pros reading Endpoints daily — and it's free.

Kimberly Smith, ViiV via Youtube

They went from dai­ly to once every two months. But how much longer act­ing can HIV meds be? Vi­iV en­lists Halozyme's tech to find out

It wasn’t easy navigating the manufacturing and controls issues that had led the FDA to reject ViiV Healthcare’s first pitch for the once-monthly HIV regimen cabotegravir and rilpivirine. But even as Kimberly Smith was knee-deep in sorting out those problems and putting together a new package that finally won the regulators over this January, her business development team kept looking for things that would take them to the next level.

Endpoints News

Keep reading Endpoints with a free subscription

Unlock this story instantly and join 109,900+ biopharma pros reading Endpoints daily — and it's free.

Geoffrey Porges, SVB Leerink

Top an­a­lyst chimes in on bub­bling de­bate about Glax­o­SmithK­line's fu­ture with a clear mes­sage: Let your £40B vac­cines group go

Geoffrey Porges does not mince words.

The SVB Leerink analyst has a clear message for GlaxoSmithKline investors the day before Emma Walsmley and her top team are set to reveal their vision for the company after spinning out the consumer health unit. Writing approvingly of the rumored moves by activist investor Elliott Management, Porges argued in a new note that GSK should go further in its restructuring to unlock more value. First up: the vaccines group.

Endpoints News

Keep reading Endpoints with a free subscription

Unlock this story instantly and join 109,900+ biopharma pros reading Endpoints daily — and it's free.

Pier Vincenzo Colli, Alfasigma CEO (C. Romagnoli, Alfasigma archive)

Al­fasig­ma snares EU rights to blood clot­ting an­ti­body on the hunt for pa­tients tak­ing As­traZeneca's Bril­in­ta

Two years after Phase I data generated promise for bentracimab as the first drug to stop bleeding in patients that were prescribed AstraZeneca’s much-hyped stroke and heart attack drug Brilinta, PhaseBio has licensed it out to a European partner.

PhaseBio sold European rights for the uncontrolled bleeding monoclonal antibody to Italian biotech Alfasigma. That company will market the drug in 49 countries across Europe and other markets, PhaseBio said in a press release.

End­points News is now 5 years old. Here's how you can sup­port us for the next phase of growth

Endpoints News turned five years old over the weekend. I wanted to mark the happy occasion by extending our deepest gratitude to Endpoints’ premium subscribers while outlining several other ways to support us as we go broader and get bigger this year and beyond.

Same as any business, we’ve got to create value and get paid for delivering it. So if you depend on Endpoints to stay abreast on biopharma developments, we depend on you too.