Ax­o­vant shares blast­ed as Vivek Ra­maswamy's pre­mier drug proves worth­less, sec­ond drug miss­es key goal

Vivek Ra­maswamy

Vivek Ra­maswamy’s first big bet on bring­ing a drug back from Big Phar­ma’s dis­card list is a com­plete bust. And an­oth­er set­back in the pipeline has con­spired to scut­tle its stock price this morn­ing.

The biotech fi­nancier’s Ax­o­vant, float­ed in an IPO that fund­ed an ex­pen­sive quest to put in­tepir­dine back in­to the clin­ic for neu­ro con­di­tions, re­port­ed out this morn­ing that both dos­es of the ther­a­py test­ed for de­men­tia with Lewy bod­ies failed to sig­nif­i­cant­ly im­prove symp­toms for pa­tients. The drug has al­so failed spec­tac­u­lar­ly for Alzheimer’s, leav­ing Ra­maswamy’s op­er­a­tion at Roivant with no choice but to kill the pro­gram.

The da­ta ac­tu­al­ly high­light­ed a wors­en­ing in dis­ease scores for two mea­sures used to eval­u­ate the low dose in the study while the top dose con­sis­tent­ly fell short of the mark.

In­vestors bailed on the news, send­ing the stock down 49% in pre-mar­ket trad­ing.

David Hung

Said Ax­o­vant CEO David Hung in a state­ment:

“Based on the to­tal­i­ty of in­tepir­dine da­ta to date, there is no ev­i­dence to sup­port its fur­ther de­vel­op­ment.”

Ra­maswamy was able to in-li­cense the failed Alzheimer’s drug from GSK for on­ly $5 mil­lion. But he sold it to in­vestors in a record-set­ting IPO back in 2015, haul­ing in $315 mil­lion dur­ing a big bull mar­ket for biotech. Since then he’s gath­ered about $2 bil­lion to­geth­er for a set of star­tups that have been busi­ly scoop­ing up drugs off of bio­phar­ma’s shelves. But every miss in the clin­ic will raise new ques­tions about the val­ue of his strat­e­gy.

Ra­maswamy bad­ly needs a win.

In an ef­fort to try and take some of the sting out of the lead fail­ure, Ax­o­vant spot­light­ed some hope­ful signs seen in a post hoc analy­sis on a sep­a­rate study of nelotanserin. But that drug al­so failed the key ef­fi­ca­cy end­point for de­men­tia pa­tients with vi­su­al hal­lu­ci­na­tions.

In a pre­spec­i­fied ITT analy­sis, nelotanserin treat­ment ver­sus place­bo (n=27) re­sult­ed in a 3.12 point im­prove­ment in the (Uni­fied Parkin­son’s Dis­ease Rat­ing Scale) Part III with a pos­i­tive trend (p=0.075, un­ad­just­ed). No­tably, in a pre­spec­i­fied analy­sis of the DLB pa­tient sub­set (n=19), nelotanserin im­proved the UP­DRS Part III by 4.00 points (p=0.041, un­ad­just­ed).

About a year ago Ax­o­vant tout­ed pos­i­tive signs from the first stage of the study, but al­so con­ced­ed a key miss on the sec­on­daries, fail­ing to im­prove the fre­quen­cy of vi­su­al hal­lu­ci­na­tions. Nev­er­the­less, the com­pa­ny head­ed straight in­to Phase III to un­der­score Ra­maswamy’s com­mit­ment to rapid-fire clin­i­cal test­ing.

Vas Narasimhan, AP Images

On a hot streak, No­var­tis ex­ecs run the odds on their two most im­por­tant PhI­II read­outs. Which is 0.01% more like­ly to suc­ceed?

Novartis CEO Vas Narasimhan is living in the sweet spot right now.

The numbers are running a bit better than expected, the pipeline — which he assembled as development chief — is performing and the stock popped more than 4% on Thursday as the executive team ran through their assessment of Q2 performance.

Year-to-date the stock is up 28%, so the investors will be beaming. Anyone looking for chinks in their armor — and there are plenty giving it a shot — right now focus on payer acceptance of their $2.1 million gene therapy Zolgensma, where it’s early days. And CAR-T continues to underperform, but Novartis doesn’t appear to be suffering from it.

Norbert Bischofberger. Kronos

Backed by some of the biggest names in biotech, Nor­bert Bischof­berg­er gets his megaround for plat­form tech out of MIT

A little over a year ago when I reported on Norbert Bischofberger’s jump from the CSO job at giant Gilead to a tiny upstart called Kronos, I noted that with his connections in biotech finance, that $18 million launch round he was starting off with could just as easily have been $100 million or more.

With his first anniversary now behind him, Bischofberger has that mega-round in the bank.

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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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Novotech CRO Ex­pands Chi­na Team as Biotech De­mand for Clin­i­cal Tri­als In­creas­es up to 79%

An increase in demand of up to 79% for clinical trials in China has prompted Novotech the Asia-Pacific CRO to rapidly expand the China team, appointing expert local clinical executives to their Shanghai and Hong Kong offices. The company is planning to expand their team by 30% over the next quarter.

Novotech China has seen considerable demand recently which is borne out by research from GlobalData:
A global migration of clinical research is occurring from high-income countries to low and middle-income countries with emerging economies. Over the period 2017 to 2018, for example, the number of clinical trial sites opened by biotech companies in Asia-Pacific increased by 35% compared to 8% in the rest of the world, with growth as high as 79% in China.
Novotech CEO Dr John Moller said China offers the largest population in the world, rapid economic growth, and an increasing willingness by government to invest in research and development.
Novotech’s 23 years of experience working in the region means we are the ideal CRO partner for USA biotechs wanting to tap the research expertise and opportunities that China offers.
There are over 22,000 active investigators in Greater China, with about 5,000 investigators with experience on at least 3 studies (source GlobalData).

On a glob­al romp, Boehringer BD team picks up its third R&D al­liance for Ju­ly — this time fo­cused on IPF with $50M up­front

Boehringer Ingelheim’s BD team is on a global deal spree. The German pharma company just wrapped its third deal in 3 weeks, going back to Korea for its latest pipeline pact — this time focused on idiopathic pulmonary fibrosis.

They’re handing over $50 million to get their hands on BBT-877, an ATX inhibitor from Korea’s Bridge Biotherapeutics that was on display at a science conference in Dallas recently. There’s not a whole lot of data to evaluate the prospects here.

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Servi­er scoots out of an­oth­er col­lab­o­ra­tion with Macro­Gen­ics, writ­ing off their $40M

Servier is walking out on a partnership with MacroGenics $MGNX — for the second time.

After the market closed on Wednesday MacroGenics put out word that Servier is severing a deal — inked close to 7 years ago — to collaborate on the development of flotetuzumab and other Dual-Affinity Re-Targeting (DART) drugs in its pipeline.

MacroGenics CEO Scott Koenig shrugged off the departure of Servier, which paid $20 million to kick off the alliance and $20 million to option flotetuzumab — putting a heavily back-ended $1 billion-plus in additional biobuck money on the table for the anti-CD123/CD3 bispecific and its companion therapies.

Den­mark's Gen­mab hits the jack­pot with $500M+ US IPO as small­er biotechs rake in a com­bined $147M

Danish drugmaker Genmab A/S is off to the races with perhaps one of the biggest biotech public listings in decades, having reaped over $500 million on the Nasdaq, as it positions itself as a bonafide player in antibody-based cancer therapies.

The company, which has long served as J&J’s $JNJ key partner on the blockbuster multiple myeloma therapy Darzalex, has asserted it has been looking to launch its own proprietary product — one it owns at least half of — by 2025.

FDA over­rides ad­comm opin­ions a fifth of the time, study finds — but why?

For drugmakers, FDA advisory panels are often an apprehended barometer of regulators’ final decisions. While the experts’ endorsement or criticism often translate directly to final outcomes, the FDA sometimes stun observers by diverging from recommendations.

A new paper out of Milbank Quarterly put a number on that trend by analyzing 376 voting meetings and subsequent actions from 2008 through 2015, confirming the general impression that regulators tend to agree with the adcomms most of the time — with discordances in only 22% of the cases.