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

RWE chal­lenges for to­day's bio­phar­ma

The rapid development of technology — and the resulting avalanche of data — are catalysts for significant change in the biopharmaceutical industry. This translates into urgent pressures for today’s biopharma, including a need to quickly and affordably develop products with proven therapeutic efficacy and value. This urgency is expedited by the growth of value-based contracting, where access to reimbursement and profit depends on these abilities.

UP­DAT­ED: In a stun­ning turn­around, Bio­gen says that ad­u­canum­ab does work for Alzheimer's — but da­ta min­ing in­cites con­tro­ver­sy and ques­tions

Biogen has confounded the biotech world one more time.

In a stunning about-face, the company and its partners at Eisai say that a new analysis of a larger dataset on aducanumab has restored its faith in the drug as a game-changer for Alzheimer’s and, after talking it over with the FDA, they’ll now be filing for an approval of a drug that had been given up for dead.

Endpoints News

Keep reading Endpoints with a free subscription

Unlock this story instantly and join 63,100+ biopharma pros reading Endpoints daily — and it's free.

As shares suf­fer from a lin­ger­ing slump, a bruised Alk­er­mes slash­es 160 jobs in R&D re­struc­tur­ing

With its share price in a deep slump after suffering through a regulatory debacle over their depression drug ALKS 5461, Alkermes CEO Richard Pops is taking the ax to its R&D organization in a restructuring aimed at cutting costs ahead of its next attempt at a rollout in a tough field.

Richard Pops, Endpoints via Youtube

Click on the image to see the full-sized version

Endpoints News

Keep reading Endpoints with a free subscription

Unlock this story instantly and join 63,100+ biopharma pros reading Endpoints daily — and it's free.

Acor­da's Ron Co­hen brings the ax back out as new drug sales on­ly trick­le in while cash cow is led to the slaugh­ter

With its new drug earning meager sums and its one-time cash cow reduced to a bony shadow of its former self, Acorda Therapeutics today is rolling out a new restructuring aimed at slashing the staff and cutting costs to get through the hard times ahead.

The biotech is chopping a quarter of its staff today, carving back R&D as well as SG&A expenses. And CEO Ron Cohen is cutting deep.

Under the new austerity budget, Acorda’s R&D expenses for the full year 2019 are expected to be $55 – $60 million, reduced from $70 – $80 million. SG&A expenses for the full year 2019 are expected to be $185 – $190 million, reduced from $200 – $210 million. R&D expenses for the full year 2020 are expected to be $20 – $25 million and SG&A
expenses for the full year 2020 are expected to be $160 – $165 million.

Endpoints News

Keep reading Endpoints with a free subscription

Unlock this story instantly and join 63,100+ biopharma pros reading Endpoints daily — and it's free.

RAPT Ther­a­peu­tics re­turns to Wall Street to re­vive IPO bid

On May 24, FLX Bio, a small cancer and inflammation biotech with backing from GV, changed its name to RAPT Therapeutics and filed confidentially for an IPO. On July 5th, they filed to raise up to $86 million. On July 22, they announced the IPO with a $75 million goal.  And on August 1, they abruptly and without explanation called it all off.

Now, without explanation, they’re reviving the bid, filing again for a $75 million IPO, this time with a new bookrunner and a new drug candidate in the clinic. The terms will be the same: 5 million shares at $14-$16 per share. It would give them a diluted market value of $351 million.

EY vet set to re­place re­tir­ing Am­gen CFO Meline

Ahead of its third-quarter results next week, Amgen on Tuesday disclosed the planned retirement of David Meline, who has served as the company’s chief financial officer since 2014.

Meline will be replaced by Ernst & Young vet, Peter Griffith, as CFO come January 1, 2020 — but until then Griffith will serve as executive vice president, finance.

“Over the last 5 years at Amgen, Meline instituted many major changes that led to operational efficiencies and margin expansion while successfully returning cash to shareholders. Now that Amgen is on solid footing, it was a good time to step away,” Cowen’s Yaron Werber wrote in a note. “We do not anticipate any major changes to strategy or operations immediately due to this transition as Amgen is on solid footing.”

Eli Lil­ly’s USA, di­a­betes chief En­rique Con­ter­no is head­ing out af­ter 27 years, and he’s be­ing re­placed by a com­pa­ny in­sid­er

Close to 3 years after Eli Lilly CEO Dave Ricks added the title of president of the US operations to Enrique Conterno’s resume, which included his helmsmanship of the diabetes franchise, the Peruvian born exec is set to retire after a 27-year run at the pharma giant.

Lilly put out the news just as it was posting Q3 results, with a mix of upbeat and downbeat results in the latest set of numbers from Lilly.
Conterno — a grizzled, deeply experienced and sometimes gruff veteran of the pharma world — was a high-profile figure at Lilly, stepping up to expanded duties as the company was forced to deal with intense pricing pressure on the diabetes side of the business. He had replaced outgoing US president Alex Azar, who later popped up as head of Health and Human Services in the Trump administration.
As head of the diabetes unit, Conterno had to deal with an extraordinarily competitive field as payers demanded bigger discounts. Trulicity’s success helped generate new revenue for the company, but Q3’s miss on revenue had a lot to do with the need for discounting the drug ahead of Novo Nordisk’s rival therapy, Rybelsus, which was priced on the wholesale level at an almost identical rate.

Endpoints News

Keep reading Endpoints with a free subscription

Unlock this story instantly and join 63,100+ biopharma pros reading Endpoints daily — and it's free.

No­var­tis hands off $80M in cash to part­ner up with a top biotech play­er in the fi­bro­sis sec­tor

Never underestimate the power of a good showing at a scientific conference.
In a presentation late last year, the researchers at Pliant Therapeutics launched a series of discussions about the preclinical data they were pulling together around their work on their small-molecule integrin inhibitor aimed at transforming growth factor beta, or TGF-β, a key pathway involved in fibrosis.
And they got some serious attention for the work.
“We got interest from pharma partners and at the end Novartis basically made it,” says Pliant CEO Bernard Coulie.

Is there a recipe for M&A suc­cess? The best and worst buy­out deals in the past decade of­fer some keys to suc­cess — and fail­ure

It’s not easy achieving a solid win in M&A in this industry. But if you follow a few simple guidelines, you may be able to increase your odds of success.
Geoffrey Porges and the team at SVB Leerink went about the “notoriously difficult” task of scoring the biopharma buyout of 2009 to 2019. Sizing up current and expected revenue from the products that were gained, they came up with the 5 winners:
Merck/Schering Plough
Bristol/Medarex
Gilead/Pharmasset
Sanofi/Genzyme
AstraZeneca/Acerta
It says a lot about the field that it’s much easier sorting out the 5 worst deals, though there’s also a lot more competition for that title, notes Porges. As picked by the analysts:
J&J/Actelion
Merck/Cubist
Alexion/Synageva
AbbVie/Stemcentrx
Gilead/Kite

Endpoints News

Keep reading Endpoints with a free subscription

Unlock this story instantly and join 63,100+ biopharma pros reading Endpoints daily — and it's free.