Bain’s Adam Kop­pel com­mits $350M to launch­ing a new biotech that is carv­ing out Pfiz­er’s neu­ro pipeline

Adam Kop­pel and his team at Bain Cap­i­tal are carv­ing out the neu­ro­sciences pipeline that Pfiz­er shut­tered at the be­gin­ning of the year, set­ting aside $350 mil­lion to back a start­up called Cerev­el which will now take con­trol of the work.

All of the mon­ey for this deal — to be an­nounced lat­er Tues­day morn­ing — is com­ing from Bain Cap­i­tal Pri­vate Eq­ui­ty and Kop­pel’s Bain Cap­i­tal Life Sci­ences.

Doug Gior­dano

Pfiz­er star­tled the neu­ro­sciences world at the be­gin­ning of this year with its de­ci­sion to abrupt­ly bow out of the field — ax­ing about 300 staffers in the process. Now Kop­pel is work­ing on re­cruit­ing his own team, which will be charged with tak­ing their 10 pro­grams through a planned Phase III, a Phase II and a slate of pre­clin­i­cal and ear­ly-stage work.

“This is a very unique deal for Bain Cap­i­tal,” Kop­pel tells me. But it’s al­so not like­ly the last time the pri­vate eq­ui­ty group will stand up new com­pa­nies like this. He com­pares it to Spring­Works, a com­pa­ny fund­ed by Bain, Or­biMed and oth­ers that took a slate of 4 drug pro­grams off the shelves of Pfiz­er last fall and point­ed them back in­to de­vel­op­ment.

The start­up al­so pops up in the wake of a sim­i­lar deal at Al­lo­gene, which raced to pick up Pfiz­er’s off-the-shelf CAR-T work and bar­rel straight in­to a record-set­ting IPO to back the play by Arie Bellde­grun and David Chang. In Al­lo­gene’s case though, the part­ners were gift­ed with a team of 40 Pfiz­er re­searchers who were deeply en­gaged in the process.

In this case, Kop­pel says they are bring­ing over a few Pfiz­er staffers, but not many. “There are a cou­ple of key peo­ple com­ing over, but it’s not a lot, as we are large­ly fo­cused on build­ing out a team,” he notes.

Aside from Pfiz­er’s BACE drug, which is be­ing left aside in the wake of a de­fin­i­tive late-stage fail­ure for the lead BACE at Mer­ck, Cerev­el is get­ting every­thing Pfiz­er had, with plans to be ful­ly op­er­a­tional in Q1 2019.

Mor­ris Birn­baum

Pfiz­er, which gets 25% of the eq­ui­ty in Cerev­el in ex­change for the pipeline, al­so plans to stay di­rect­ly en­gaged at the com­pa­ny, with Doug Gior­dano, se­nior vice pres­i­dent of world­wide busi­ness de­vel­op­ment, and Mor­ris Birn­baum, se­nior vice pres­i­dent, CSO of in­ter­nal med­i­cine, join­ing the board along­side Kop­pel and Chris Gor­don, an­oth­er man­ag­ing di­rec­tor at Bain.

Kop­pel is still keep­ing many of his cards close to his vest. He’s not say­ing how many staffers he ex­pects to re­cruit for the ini­tial ef­fort. An IPO may even­tu­al­ly be one way to go, but it’s not on his agen­da for dis­cussing with writ­ers to­day. 

The com­pa­ny won’t lack for mon­ey; Bain is ready to put up more cash if nec­es­sary.

Says Kop­pel: “This com­pa­ny will be well fund­ed.”

Their mon­ey will go to a late-stage D1 par­tial ag­o­nist, which Kop­pel ex­pects to en­ter Phase III next year as they ex­plore the drug’s po­ten­tial for con­trol­ling symp­toms of Parkin­son’s. A Phase II-ready se­lec­tive GA­BA 2/3 ag­o­nist will start off in an epilep­sy pro­gram. The com­pa­ny al­so has ac­tive pro­grams in ear­ly de­vel­op­ment, dis­cov­ery and a re­search pro­gram in neu­roin­flam­ma­tion. 

I sug­gest­ed that neu­ro­sciences, which has seen a va­ri­ety of Big Phar­mas bow out in the wake of fear­some fail­ure rates, was a tough field to jump in­to. But Kop­pel didn’t agree, cit­ing cas­es where Sage, Neu­ro­crine and oth­ers have been mak­ing a rep­u­ta­tion for them­selves.

The key here, he says, is whether a lean­er, mean­er biotech ma­chine can more ef­fi­cient­ly de­vel­op this pipeline of drugs, which is an idea that Pfiz­er is wide open to. And if it works, they can be one of the lead­ing biotechs in the field as well.


Im­age: Adam Kop­pel. BAIN

FDA chief Stephen Hahn on Capitol Hill earlier this week (Getty Images)

As FDA’s work­load buck­les un­der the strain, Trump again ac­cus­es the agency of a po­lit­i­cal hit job

Peter Marks appeared before a virtual SVB Leerink audience yesterday and said that his staff at FDA’s CBER is on the verge of working around the clock. Manufacturing inspections, policy work and sponsor communications have all been pushed down the to-do list so that they can be responsive to Covid-related interactions. And the agency’s objective right now? “To save as many lives as we can,” Marks said, likening the mortality on the current outbreak as equivalent to “a nuclear bomb on a small city.”

Mi­no­ryx and Sper­o­genix ink an ex­clu­sive li­cense agree­ment to de­vel­op and com­mer­cial­ize lerigli­ta­zone in Chi­na

September 23, 2020 – Hong Kong, Beijing, Shanghai (China) and Mataró, Barcelona (Spain)  

Minoryx will receive an upfront and milestone payments of up to $78 million, as well as double digit royalties on annual net sales 

Sperogenix will receive exclusive rights to develop and commercialize leriglitazone for the treatment of X-linked adrenoleukodystrophy (X-ALD), a rare life-threatening neurological condition

David Berry (Flagship)

Flag­ship's next big tech­no­log­i­cal bet? The cloud

Earlier this month, Flagship announced their big bet on the software half the industry is talking about, launching the AI and machine learning startup. Now, they and a couple other investors are gambling $100 million on a software that much of the public generally thinks of as a cool, IT afterthought: cloud computing.

The idea, says founder and Flagship partner David Berry, is one of scale: The sheer magnitude of biological data that you can store on cloud technology is unprecedented. And that size, when leveraged properly, can allow you to ask questions and form insights that are similarly unprecedented.

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Patrick Enright, Longitude co-founder (Longitude)

As its biotechs hit the pan­dem­ic ex­it, Lon­gi­tude rais­es $585M for new neu­ro, can­cer, ag­ing and or­phan-fo­cused fund

The years have been kind to Longitude Capital. This year, too.

A 2006 spinout of Pequot Capital, its founders started their new firm just four years before the parent company would go under amid insider trading allegations. Their first life sciences fund raised $325 million amid the financial crisis, they added a second for $385 million and then in, 2016, a third for $525 million. In the last few months, the pandemic biotech IPO boom netted several high-value exits from those funds, as Checkmate, Vaxcyte, Inozyme and Poseida all went public.

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The win­dow is wide open as four more biotechs join the go-go IPO class of 2020

It’s another day of hauling cash in the biopharma world as four more IPOs priced Friday and a fifth filed its initial paperwork.

The biggest offering comes from PMV Pharma, an oncology biotech focusing on p53 mutations, which raised $211.8 million after pricing shares at $18 apiece. Prelude Therapeutics, developing PRMT5 inhibitors for rare cancers, was next with a $158 million raise, pricing shares at $19 each. Graybug Vision raised $90 million after pricing at $16 per share for its wet AMD candidates, and breast cancer biotech Greenwich Lifesciences brought up the rear with a small, $7 million raise after pricing shares at $5.75.

J&J of­fers PhI/IIa da­ta show­ing its sin­gle-dose vac­cine can stir up suf­fi­cient im­mune re­sponse

Days after J&J dosed the first participants of its Phase III ENSEMBLE trial, the pharma giant has detailed the early-stage data that gave them confidence in a single-dose regimen.

Testing two dose levels either as a single dose or in a two-dose schedule spaced by 56 days in, the scientists from Janssen, the J&J subsidiary developing its vaccine, reported that the low dose induced a similar immune response as the high dose. The interim Phase I/IIa results were posted in a preprint on medRxiv.

Daniel O'Day, Gilead CEO (Kevin Dietsch/UPI/Bloomberg via Getty Images)

Play-by-play of Gilead­'s $21B Im­munomedics buy­out de­tails a fren­zied push — and mints a new biotech bil­lion­aire

Immunomedics had not really been looking for a buyout when the year began. Excited by its BLA for Trodelvy, submitted to the FDA in late 2019, executive chairman Behzad Aghazadeh started off looking for potential licensing deals and zeroed in on four potential partners, including Gilead, following January’s JP Morgan Healthcare Conference in San Francisco. Such talks advanced throughout the year, with discussions advancing to the second round in mid-August.

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President Donald Trump reacts after signing an executive order following his remarks on his healthcare policies yesterday in Charlotte, North Carolina (Getty Images)

Op-ed: Will phar­ma re­al­ly pay for Trump’s lat­est law­less promise to 33 mil­lion Medicare ben­e­fi­cia­ries? Not like­ly

Sitting atop the executive branch, President Donald Trump is the ultimate authority at the FDA. He can fast track any vaccine to approval himself. If it came to that, of course.

What he can’t do is unilaterally order the legislative branch to loosen the Treasury’s coffers for $6.6 billion. Nor can he command pharmaceutical companies to pay for $200 vouchers sent to 33 million Medicare beneficiaries for prescription drugs before the election.

Pal­la­dio bags $20 mil­lion Se­ries B to top­ple a prob­lem­at­ic kid­ney dis­ease drug

Palladio Biosciences just took one step further in its quest to topple Otsuka’s Samsca with its own — it hopes safer — autosomal dominant polycystic kidney disease (ADPKD) drug.

The Pennsylvania-based biotech announced a $20 million Series B on Friday, which will fund a 10-person Phase III trial of its vasopressin V2 receptor agonist, lixivaptan. CEO Alex Martin expects to read out data in the first half of next year, then launch straight into a larger pivotal Phase III study with about 1,200 participants.