Back to the be­gin­ning: Pfiz­er seeds dis­cov­ery-stage neu­ro start­up Mag­no­lia (af­ter ax­ing its own brain R&D)

Af­ter yank­ing its own neu­ro­science ef­forts —  and re­treat­ing from the fail­ure-strewn bat­tle­ground of brain sci­ence — Pfiz­er is ped­al­ing back to the be­gin­ning in this field. The phar­ma gi­ant is fund­ing a brand-new MD An­der­son spin­out that’s ques­tion­ing the very ba­sics of neu­rode­gen­er­a­tion.

The start­up, called Mag­no­lia Neu­ro­sciences (“Mag­no­lia” as a nod to its Texas roots), is be­ing rather tightlipped about what it’s work­ing on. But CEO Thong Le tells me the com­pa­ny is steer­ing away from tra­di­tion­al ef­forts in the field.

In short, the start­up is tap­ping a body of lit­er­a­ture around a bi­o­log­i­cal process that oc­curs in the womb dur­ing the ear­li­est stages of life. When an em­bryo is form­ing, the body trash­es ex­cess neu­rons in a process called “pro­grammed cell death.” Re­search shows that this same process is re­ac­ti­vat­ed in the brain through­out the course of Alzheimer’s dis­ease, among oth­er neu­ro con­di­tions. Mag­no­lia is hy­poth­e­siz­ing that block­ing spe­cif­ic com­po­nents of this process will pre­serve brain tis­sue in hu­mans and — hope­ful­ly — pre­vent mem­o­ry loss. That’s what they’ve seen in mouse mod­els, any­way.

“Not on­ly can you pre­serve brain tis­sue and en­hance mem­o­ry, but — from a more bi­o­log­i­cal point of view — you could dra­mat­i­cal­ly change the course and de­vel­op­ment of neu­ro­log­i­cal dis­ease,” Le said.

To get to work on the idea, Mag­no­lia has round­ed up $31 mil­lion in a Se­ries A packed with high pro­file cor­po­rate VCs. The stel­lar syn­di­cate was put to­geth­er by Ac­cel­er­a­tor Life Sci­ence Part­ners, a start­up fac­to­ry that churns out these ven­tures by shop­ping aca­d­e­m­ic labs and oth­er hubs of in­no­va­tion around the globe. Once they find some­thing promis­ing, they put to­geth­er a team and spin the tech out in­to a start­up of its own.

It should be not­ed that Le is the CEO at Ac­cel­er­a­tor, which is why he’s head­ing up Mag­no­lia for the time be­ing.

Ac­cel­er­a­tor has satel­lites in New York, Seat­tle, and San Diego, and has launched sev­en star­tups since its in­cep­tion. One of their ven­tures is Lo­do Ther­a­peu­tics, the New York-based com­pa­ny that scored a $969 mil­lion (biobucks) deal with Genen­tech in metage­nomics ear­li­er this year.

Mag­no­lia man­aged to at­tract a slew of cor­po­rate VCs, in­clud­ing the afore­men­tioned Pfiz­er, Eli Lil­ly, Ab­b­Vie Ven­tures, and John­son & John­son In­no­va­tion, among oth­ers. You can see the full list on the com­pa­ny’s press re­lease.

Af­ter scrap­ping its own neu­ro­science work ear­li­er this year, some might see Pfiz­er’s in­vest­ment in star­tups as putting a bandaid over a gap­ing hole. But the phar­ma gi­ant is mak­ing an ef­fort to seed in­no­va­tion out­side of its own labs. In June, the com­pa­ny com­mit­ted an ad­di­tion­al $150 mil­lion to its VC group to in­vest in neu­ro­science star­tups. This in­vest­ment in Mag­no­lia is one of the first bets, it seems.

Le said it ac­tu­al­ly makes a lot of sense for large phar­ma­ceu­ti­cal com­pa­nies to leave the ear­ly dis­cov­ery work to small­er biotechs.

“When it comes to de­vel­op­ing drugs for com­plex dis­eases like Alzheimer’s, to some ex­tent we’re muck­ing with bi­ol­o­gy that we don’t re­al­ly have a per­fect un­der­stand­ing of, which re­quires tak­ing cal­cu­lat­ed risk from a de­vel­op­ment per­spec­tive,” he said. “Large phar­ma com­pa­nies that are pub­licly trad­ed don’t have as much flex­i­bil­i­ty as they’d like to have in terms of be­ing ag­ile and tak­ing the leaps of faith need­ed to push an ear­ly stage pro­gram ag­gres­sive­ly for­ward.”

Le said this lat­est round of fund­ing should move Mag­no­lia to­ward clin­i­cal de­vel­op­ment, al­though he’s not shar­ing time­lines just yet.


Im­age: Ac­cel­er­a­tor and Mag­no­lia CEO Thong Le. Mag­no­lia

Late Fri­day ap­proval; Trio of biotechs wind down; Stem cell pi­o­neer finds new fron­tier; Biotech icon to re­tire; 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.

I hope your weekend is off to a nice start, wherever you are reading this email. As for me, I’m trying to catch the tail of the Lunar New Year festivities.

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Pfiz­er lays off em­ploy­ees at Cal­i­for­nia and Con­necti­cut sites

Pfizer has laid off employees at its La Jolla, CA, and Groton, CT sites, according to multiple LinkedIn posts from former employees.

The Big Pharma confirmed to Endpoints News it has let go of some employees, but a spokesperson declined to specify how many workers were impacted and the exact locations affected. Earlier this month, the drug developer had confirmed to Endpoints it was sharpening its focus and doing away with some early research on areas such as rare disease, oncology and gene therapies.

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Rodney Rietze, iVexSol CEO

Bris­tol My­ers, Charles Riv­er join Se­ries A fund­ing for iVex­Sol

Massachusetts-based iVexSol has secured funding to the tune of $23.8 million in its latest Series A round. The new investors include Bristol Myers Squibb, manufacturer Charles River Laboratories and Asahi Kasei Medical.

iVexSol is a manufacturer of lentiviral vectors (LVV), used in making gene therapies, and this latest round of fundraising brings its total Series A total over $39 million, which will be used to recruit more employees and bolster its technology.

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Jake Van Naarden, Loxo@Lilly CEO

Lil­ly en­ters ripe BTK field with quick FDA nod in man­tle cell lym­phoma

Eli Lilly has succeeded in its attempt to get the first non-covalent version of Bruton’s tyrosine kinase, or BTK, inhibitors to market, pushing it past rival Merck.

The FDA gave an accelerated nod to Lilly’s daily oral med, to be sold as Jaypirca, for patients with relapsed or refractory mantle cell lymphoma.

The agency’s green light, disclosed by the Indianapolis Big Pharma on Friday afternoon, catapults Lilly into a field dominated by covalent BTK inhibitors, which includes AbbVie and Johnson & Johnson’s Imbruvica, AstraZeneca’s Calquence and BeiGene’s Brukinsa.

Tony Johnson, Goldfinch Bio CEO (Goldfinch via YouTube)

Kid­ney dis­ease drug­mak­er Goldfinch Bio shuts down

Goldfinch Bio, attempting to make treatments for kidney diseases and diabetic nephropathy, is shutting down.

President and CEO Tony Johnson confirmed to Endpoints News Friday afternoon that the biotech shut down after “fundraising challenges in the current macro-environment.” Fierce Biotech first reported the news.

Johnson, who joined in 2017 after a stint as SVP of early clinical development at AstraZeneca, said in a text that the company “entered the ABC process recently,” referring to an assignment for the benefit of the creditors, which provides a different wind-down avenue than a bankruptcy.

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Filip Dubovsky, Novavax CMO

No­vavax gets ready to take an­oth­er shot at Covid vac­cine mar­ket with next sea­son plans

While mRNA took center stage at yesterday’s FDA vaccine advisory committee meeting, Novavax announced its plans to deliver an updated protein-based vaccine based on new guidance.

Vaccines and Related Biological Products Advisory Committee (VRBPAC) members voted unanimously in favor of “harmonizing” Covid vaccine compositions, meaning all future vaccine recipients would receive a bivalent vaccine, regardless of whether they’ve gotten their primary series.

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Eliot Forster, F-star CEO (Rachel Kiki for Endpoints News)

F-star gets down to the wire with $161M sale to Chi­nese buy­er as na­tion­al se­cu­ri­ty con­cerns linger

With the clock ticking on F-star Therapeutics’ takeover by a Chinese buyer, the companies are still scrambling to remove a hold on the deal from the US government’s Committee on Foreign Investment in the United States.

F-star and invoX Pharma said they are “actively negotiating” with CFIUS “about the terms of a mitigation agreement to address CFIUS’s concerns regarding potential national security risks posed by the transaction.”

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CBER Director Peter Marks (Susan Walsh/AP Images)

FDA ad­vi­so­ry com­mit­tee votes unan­i­mous­ly in fa­vor of bi­va­lent Covid shots re­plac­ing pri­ma­ry se­ries

The FDA’s Vaccines and Related Biological Products Advisory Committee (VRBPAC) voted unanimously in favor of “harmonizing” Covid vaccine compositions, meaning all current vaccine recipients would receive a bivalent vaccine, regardless of whether they’ve gotten their primary series.

The vote marks an effort to clear up confusion around varying formulations and dosing schedules for current primary series and booster vaccines, as well as “get closer to the strains that are circulating,” according to committee member Paul Offit, professor of pediatrics at the Children’s Hospital of Philadelphia.

In­vestor 'misalign­men­t' leads to tR­NA biotech's shut­ter­ing

A small biotech looking to carve a lane in the tRNA field has folded, an investor and a co-founder confirmed to Endpoints News.

Similar to Flagship’s Alltrna and other upstarts like Takeda-backed hC Bioscience, the now-shuttered Theonys was attempting to go after transfer RNA, seen as a potential Swiss Army knife in the broader RNA therapeutics space. The idea is that one tRNA drug could be used across a galaxy of disorders and diseases.

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