Arc­turus takes an­oth­er le­gal stab at for­mer CEO as pub­lic bat­tle turns se­ri­ous for the com­pa­ny

The bit­ter and pub­lic feud be­tween small RNA med­i­cines com­pa­ny Arc­turus Ther­a­peu­tics $ARCT and its for­mer CEO Joe Payne is rag­ing on Fri­day, with a brand new law­suit (yes, an­oth­er one) launched against Payne and a few of his as­so­ciates.

Joseph Payne

In the law­suit, Arc­turus al­leges that Payne and his as­so­ciates Bradley Soren­son, Pe­ter Far­rell, and An­drew Sas­sine (col­lec­tive­ly re­ferred to as “the Payne group”) have failed to file cer­tain pa­per­work with the SEC. Specif­i­cal­ly, the law­suit ac­cus­es the group for mul­ti­ple vi­o­la­tions of fed­er­al dis­clo­sure and re­port­ing rules un­der Sec­tion 13(d) of the Ex­change Act and Reg­u­la­tion 13D.

Arc­turus says it’s seek­ing in­junc­tive re­lief to com­pel the Payne group to com­ply with these reg­u­la­tions, but per­haps more im­por­tant­ly, the law­suit al­so seeks to pre­vent Payne and his as­so­ciates from “con­tin­u­ing to mis­lead the vot­ing share­hold­ers of Arc­turus lead­ing up to the next ex­tra­or­di­nary gen­er­al meet­ing of share­hold­ers.”

In oth­er words, Arc­turus is hop­ing if it airs Payne’s dirty laun­dry, then share­hold­ers won’t side with Payne’s pro­pos­al to re­place the whole Arc­turus board with his own ap­point­ments.

Payne, the for­mer chief ex­ec­u­tive who was fired from Arc­turus for al­leged­ly putting his own self-in­ter­ests be­fore the com­pa­ny’s, has been a bit of a thorn in the com­pa­ny’s side over the past cou­ple of months. Payne took the first pub­lic swing in the bat­tle roy­al, claim­ing that four board mem­bers con­spired on his ouster. But then Arc­turus hit back with its own state­ment, even as it com­plied with Payne’s re­quest to vote on new board mem­bers.

Then late last month, the drawn out fight took a nasty turn when Arc­turus launch­es its first law­suit against Payne, seek­ing dam­ages and in­junc­tive re­lieve and de­tail­ing Payne’s mul­ti­ple al­leged mis­con­ducts. Those in­clud­ed op­er­at­ing a “lu­cra­tive side busi­ness dur­ing busi­ness hours” and at­tempt­ing to trans­fer Arc­turus’ IP for no ap­par­ent rea­son dur­ing his tenure, in ad­di­tion to or­ches­trat­ing a move to block Arc­turus’ rou­tine au­dit­ing ac­tiv­i­ty.

But things are start­ing to get re­al for Arc­turus, it says, as Payne’s ac­tions could have se­ri­ous con­se­quences for the com­pa­ny. That move with the au­di­tors, for ex­am­ple, could po­ten­tial­ly re­sult in Arc­turus get­ting boot­ed from the Nas­daq. In a state­ment, Arc­turus had this to say:

“The Payne Group’s ac­tions are cal­cu­lat­ed non-dis­clo­sures that promise to keep Arc­turus share­hold­ers in the dark at this crit­i­cal time in the Com­pa­ny’s his­to­ry, caus­ing di­rect and on­go­ing harm to the Com­pa­ny and its share­hold­ers as the EGM ap­proach­es. We be­lieve that if Payne and his as­so­ciates are al­lowed to con­tin­ue to evade dis­clo­sure re­quire­ments and op­er­ate in vi­o­la­tion of Reg­u­la­tion 13D, Arc­turus will not be able to have a free and fair di­rec­tor elec­tion.”

Hal Barron, GSK

Break­ing the death spi­ral: Hal Bar­ron talks about trans­form­ing the mori­bund R&D cul­ture at GSK in a crit­i­cal year for the late-stage pipeline

Just ahead of GlaxoSmithKline’s Q2 update on Wednesday, science chief Hal Barron is making the rounds to talk up the pharma giant’s late-stage strategy as the top execs continue to woo back a deeply skeptical investor group while pushing through a whole new R&D culture.

And that’s not easy, Barron is quick to note. He told the Financial Times:

I think that culture, to some extent, is as hard, in fact even harder, than doing the science.

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Aca­dia is mak­ing the best of it, but their lat­est PhI­II Nu­plazid study is a bust

Acadia’s late-stage program to widen the commercial prospects for Nuplazid has hit a wall. The biotech reported that their Phase III ENHANCE trial flat failed. And while they $ACAD did their best to cherry pick positive data wherever they can be found, this is a clear setback for the biotech.

With close to 400 patients enrolled, researchers said the drug flunked the primary endpoint as an adjunctive therapy for patients with an inadequate response to antipsychotic therapy. The p-value was an ugly 0.0940 on the Positive and Negative Syndrome Scale, which the company called out as a positive trend.

Their shares slid 12% on the news, good for a $426 million hit on a $3.7 billion market cap at close.

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Some Big Phar­mas stepped up their game on da­ta trans­paren­cy — but which flunked the test?

The nonprofit Bioethics International has come out with their latest scorecard on data transparency among the big biopharmas in the industry — flagging a few standouts while spotlighting some laggards who are continuing to underperform.

Now in its third year, the nonprofit created a new set of standards with Yale School of Medicine and Stanford Law School to evaluate the track record on trial registration, results reporting, publication and data-sharing practice.

Busy Gilead crew throws strug­gling biotech a life­line, with some cash up­front and hun­dreds of mil­lions in biobucks for HIV deal

Durect $DRRX got a badly needed shot in the arm Monday morning as Gilead’s busy BD team lined up access to its extended-release platform tech for HIV and hepatitis B.

Gilead, a leader in the HIV sector, is paying a modest $25 million in cash for the right to jump on the platform at Durect, which has been using its technology to come up with an extended-release version of bupivacaine. The FDA rejected that in 2014, but Durect has been working on a comeback.

In­tec blitzed by PhI­II flop as lead pro­gram fails to beat Mer­ck­'s stan­dard com­bo for Parkin­son’s

Intec Pharma’s $NTEC lead drug slammed into a brick wall Monday morning. The small-cap Israeli biotech reported that its lead program — coming off a platform designed to produce a safer, more effective oral drug for Parkinson’s — failed the Phase III at the primary endpoint.

Researchers at Intec, which has already seen its share price collapse over the past few months, says that its Accordion Pill-Carbidopa/Levodopa failed to prove superior to Sinemet in reducing daily ‘off’ time. 

Cel­gene racks up third Ote­zla ap­proval, heat­ing up talks about who Bris­tol-My­ers will sell to

Whoever is taking Otezla off Bristol-Myers Squibb’s hands will have one more revenue stream to boast.

The drug — a rising star in Celgene’s pipeline that generated global sales of $1.6 billion last year — is now OK’d to treat oral ulcers associated with Behçet’s disease, a common symptom for a rare inflammatory disorder. This marks the third FDA approval for the PDE4 inhibitor since 2014, when it was greenlighted for plaque psoriasis and psoriatic arthritis.

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Francesco De Rubertis

Medicxi is rolling out its biggest fund ever to back Eu­rope's top 'sci­en­tists with strange ideas'

Francesco De Rubertis built Medicxi to be the kind of biotech venture player he would have liked to have known back when he was a full time scientist.

“When I was a scientist 20 years ago I would have loved Medicxi,’ the co-founder tells me. It’s the kind of place run by and for investigators, what the Medicxi partner calls “scientists with strange ideas — a platform for the drug hunter and scientific entrepreneur. That’s what I wanted when I was a scientist.”

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Af­ter a decade, Vi­iV CSO John Pot­tage says it's time to step down — and he's hand­ing the job to long­time col­league Kim Smith

ViiV Healthcare has always been something unique in the global drug industry.

Owned by GlaxoSmithKline and Pfizer — with GSK in the lead as majority owner — it was created 10 years ago in a time of deep turmoil for the field as something independent of the pharma giants, but with access to lots of infrastructural support on demand. While R&D at the mother ship inside GSK was souring, a razor-focused ViiV provided a rare bright spot, challenging Gilead on a lucrative front in delivering new combinations that require fewer therapies with a more easily tolerated regimen.

They kept a massive number of people alive who would otherwise have been facing a death sentence. And they made money.

And throughout, John Pottage has been the chief scientific and chief medical officer.

Until now.

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Vlad Coric (Biohaven)

In an­oth­er dis­ap­point­ment for in­vestors, FDA slaps down Bio­haven’s re­vised ver­sion of an old ALS drug

Biohaven is at risk of making a habit of disappointing its investors.

Late Friday the biotech $BHVN reported that the FDA had rejected its application for riluzole, an old drug that they had made over into a sublingual formulation that dissolves under the tongue. According to Biohaven, the FDA had a problem with the active ingredient used in a bioequivalence study back in 2017, which they got from the Canadian drugmaker Apotex.

Apotex, though, has been a disaster ground. The manufacturer voluntarily yanked the ANDAs on 31 drugs — in late 2017 — after the FDA came across serious manufacturing deficiencies at their plants in India. A few days ago, the FDA made it official.

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