As drug­mak­ers seek ways to elude IL-2 flaws, Clin­i­gen se­cures the full rights to orig­i­nal trou­bled IL-2 drug Pro­leukin

Pro­leukin, the trou­bled IL-2 can­cer drug sold by No­var­tis, has found a new home at Clin­i­gen, while oth­ers in the field of im­muno-on­col­o­gy seek ways to cre­ate an im­proved ver­sion of the class of drugs sans the tox­i­c­i­ty that has stymied the use of the orig­i­nal IL-2.

Last year, Lon­don-list­ed Clin­i­gen $CLIN ac­quired the rights to sell the drug out­side the Unit­ed States from No­var­tis $NVS, in a deal where fi­nan­cial de­tails were not dis­closed. The drug, which is used to treat metasta­t­ic re­nal cell car­ci­no­ma and metasta­t­ic melanoma, has gen­er­at­ed rough­ly $80 mil­lion in an­nu­al sales in the last few years, ac­cord­ing to Eval­u­ate Phar­ma. In the year lead­ing up to June 30, 2018, Pro­leukin gen­er­at­ed US sales of $60 mil­lion, ac­cord­ing to Clin­i­gen, cit­ing IQVIA es­ti­mates.

Clin­i­gen, which says it aims to re­vi­tal­ize med­i­cines of im­por­tance that have been side­lined due to chal­lenges, on Wednes­day said it is ac­quir­ing the re­main­ing US rights from No­var­tis in a deal up to $210 mil­lion in cash, in­clud­ing $120 mil­lion up­front. The rest will come in de­ferred and mile­stone pay­ments. The deal is ex­pect­ed to be con­sum­mat­ed by April.

Pro­leukin is cur­rent­ly be­ing in­ves­ti­gat­ed in some 80 ac­tive tri­als for use in a pletho­ra of dis­eases, and Clin­i­gen is “ex­plor­ing op­tions with com­pa­nies who are look­ing to cre­ate ei­ther new dosage ver­sions of (the) Il-2 or com­bi­na­tion reg­i­mens,” a spokesper­son told End­points News, de­clin­ing to elab­o­rate fur­ther on its re­vi­tal­iza­tion strat­e­gy.

The Pro­leukin ac­qui­si­tion will aug­ment Clin­i­gen’s earn­ings, adding at least 25% to its EPS in the first full fi­nan­cial year af­ter the prod­uct tran­si­tions to the com­pa­ny, and is al­so ex­pect­ed to cut its debt bur­den.

The ini­tial IL-2 ap­proach showed the promise of the tar­get, but safe­ty is­sues in­clud­ing a dose-lim­it­ing tox pro­file and im­muno­sup­pres­sion thwart­ed its po­ten­tial. Now com­pa­nies such as Nek­tar Ther­a­peu­tics $NK­TR are work­ing on a next-gen IL-2 ther­a­py, an ef­fort that com­bined with Bris­tol-My­ers’ $BMY Op­di­vo has re­cent­ly hit a snag.

Clin­i­gen al­ready owns three prod­ucts in the US: Fos­cav­ir, Ethy­ol and To­tect, al­though Pfiz­er has won the com­mer­cial li­cense to Fos­cav­ir and Cum­ber­land Phar­ma­ceu­ti­cals to Ethy­ol and To­tect.

Biotech Half­time Re­port: Af­ter a bumpy year, is biotech ready to re­bound?

The biotech sector has come down firmly from the highs of February as negative sentiment takes hold. The sector had a major boost of optimism from the success of the COVID-19 vaccines, making investors keenly aware of the potential of biopharma R&D engines. But from early this year, clinical trial, regulatory and access setbacks have reminded investors of the sector’s inherent risks.

RBC Capital Markets recently surveyed investors to take the temperature of the market, a mix of specialists/generalists and long-only/ long-short investment strategies. Heading into the second half of the year, investors mostly see the sector as undervalued (49%), a large change from the first half of the year when only 20% rated it as undervalued. Around 41% of investors now believe that biotech will underperform the S&P500 in the second half of 2021. Despite that view, 54% plan to maintain their position in the market and 41% still plan to increase their holdings.

UP­DAT­ED: Boehringer nabs FDA's first in­ter­change­abil­i­ty des­ig­na­tion for its Hu­mi­ra com­peti­tor — but will it mat­ter?

The FDA late Friday awarded Boehringer Ingelheim the first interchangeability designation for its Humira biosimilar Cyltezo, meaning that when it launches in July 2023, pharmacists will be able to automatically substitute the Boehringer’s version for AbbVie’s mega-blockbuster without a doctor’s input.

The designation will likely give Boehringer, which first won approval for Cyltezo in 2017, the leg up on a crowded field of Humira competitors.

Bio­gen hit by ALS set­back with PhI­II fail­ure for tofersen — but fol­lows a fa­mil­iar strat­e­gy high­light­ing the pos­i­tive

Patients and analysts waiting to hear Sunday how Biogen’s SOD1-ALS drug tofersen fared in Phase III didn’t have to wait long for the top-line result they were all waiting for. The drug failed the primary endpoint on significantly improving the functional and neurologic decline of patients over 28 weeks as well as the extension period for continued observation.

In fact, there was very little difference in response.

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Jeffrey Nau, Oyster Point Pharma CEO

FDA OKs an in­haled ver­sion of smok­ing ces­sa­tion drug Chan­tix — for a com­mon eye dis­ease

Oyster Point Pharma now has its first FDA-approved product — Tyrvaya. And the biotech has taken a unique route to get there by using an old drug with a storied past.

The New Jersey biotech announced this morning that the FDA has approved their nasal spray product for dry eye disease on Friday — the first nasal spray to be approved for the disease. The product’s active ingredient is 0.03 mg of varenicline, also known as smoking cessation aid Chantix.

Sheldon Koenig, Esperion CEO

Es­pe­ri­on gets out the bud­get ax, chop­ping 170 staffers as its big drug launch sput­ters

Esperion’s executive team spent years insisting that they had found the sweet spot in the market for their cholesterol drug. But that strategy has soured badly, and after struggling to sell its heart disease pill for more than a year, the biotech says it will cut about 40% of its staff over the next few weeks.

The layoffs will take place across the board, from sales and marketing to R&D, CEO Sheldon Koenig told Endpoints News on Monday. While the chief executive declined to elaborate on how many employees will be affected, an SEC filing stated that approximately 170 staffers are on the chopping block.

Two drug­mak­ers hit with PDU­FA date de­lays from FDA amid back­log of in­spec­tions

As the FDA is weighed down with more and more pandemic responsibilities, the agency is beginning to miss PDUFA dates with more frequency too. Two different companies on Monday said they received notices that the FDA has not completed their drug reviews on time.

The review of an NDA for Avadel Pharmaceuticals’ candidate treatment for narcolepsy is not coming this month, the company said, and the review of UCB’s BLA for bimekizumab, used to treat moderate to severe plaque psoriasis, will miss its target date as well.

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Reshma Kewalramani, Vertex CEO (YouTube)

Ver­tex gets much-need­ed win with ‘ex­tra­or­di­nary’ first pa­tient re­sults on po­ten­tial di­a­betes cure

Vertex said Monday that the first patient dosed with its cell therapy for type 1 diabetes saw their need for insulin injections vanish almost entirely, a key early step in the decades-long effort to develop a curative treatment for the chronic disease.

The patient, who had suffered five potentially life-threatening hypoglycemic — or low blood sugar — episodes in the year before the therapy, was injected with synthetic insulin-producing cells. After 90 days, the patient’s new cells produced insulin steadily and ramped up their insulin production after a meal like normal cells do, as measured by a standard biomarker for insulin production.

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Covid-19 vac­cine boost­ers earn big thumbs up, but Mod­er­na draws ire over world sup­ply; What's next for Mer­ck’s Covid pill?; The C-suite view on biotech; and more

Welcome back to Endpoints Weekly, your review of the week’s top biopharma headlines. Want this in your inbox every Saturday morning? Current Endpoints readers can visit their reader profile to add Endpoints Weekly. New to Endpoints? Sign up here.

You may remember that at the beginning of this year, Endpoints News set a goal to go broader and deeper. We are still working towards that, and are excited to share that Beth Snyder Bulik will be joining us on Monday to cover all things pharma marketing. You can sign up for her weekly Endpoints MarketingRx newsletter in your reader profile.

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No­var­tis de­vel­op­ment chief John Tsai: 'We go deep in the new plat­form­s'

During our recent European Biopharma Summit, I talked with Novartis development chief John Tsai about his experiences over the 3-plus years he’s been at the pharma giant. You can read the transcript below or listen to the exchange in the link above.

John Carroll: I followed your career for quite some time. You’ve had more than 20 years in big pharma R&D and you’ve obviously seen quite a lot. I really was curious about what it was like for you three and a half years ago when you took over as R&D chief at Novartis. Obviously a big move, a lot of changes. You went to work for the former R&D chief of Novartis, Vas Narasimhan, who had his own track record there. So what was the biggest adjustment when you went into this position?

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