Benev­o­len­tAI draws $90M from Temasek amid re­ports of halved val­u­a­tion

Days af­ter news leaked that Benev­o­len­tAI had se­cured fund­ing at a rate that would halve its $2 bil­lion val­u­a­tion, the ma­chine learn­ing start­up of­fi­cial­ly an­nounced it raised $90 mil­lion from Sin­ga­pore-based Temasek for a mi­nor­i­ty stake.

The news deals an­oth­er blow to em­bat­tled fund man­ag­er Neil Wood­ford. Benev­o­len­tAI was one of two biotech AI star­tups, along with Ox­ford Nanopore, Wood­ford was re­port­ed­ly prep­ping for auc­tion to raise cash for his still frozen Eq­ui­ty In­come Fund. Nanopore’s $1.5 bil­lion val­u­a­tion re­mains steady, af­firmed by fel­low in­vestor IP Group.

For Wood­ford, the dam­age may have ac­tu­al­ly al­ready been done. Last week, Wood­ford Pa­tient Cap­i­tal Trust an­nounced they were forced to write down the val­ue of one of its as­sets, cost­ing the trust’s net val­ue 4 pence per share and an es­ti­mat­ed $52 mil­lion. The trust has now re­vealed that un­named in­vest­ment is Benev­o­len­tAI.

Nev­er­the­less, Benev­o­len­tAI’s de­flat­ed val­ue may cut in­to the price Wood­ford ul­ti­mate­ly fetch­es for his stake in the com­pa­ny. An FT in­ves­ti­ga­tion from June found Wood­ford’s two firms col­lec­tive­ly owned near­ly a fifth of the Cam­bridge-based biotech. The biotech, in turn, makes up 5,04% of the Eq­ui­ty In­come Fund and, per FT, is Wood­ford Pa­tient Cap­i­tal Trust’s largest sin­gle hold­ing, ac­count­ing for 9.81%.

Wood­ford has said he plans to have enough cash to re­open the Eq­ui­ty In­come Fund by De­cem­ber.

Benev­o­len­tAI’s val­ue rose ex­po­nen­tial­ly af­ter Wood­ford’s ini­tial in­vest­ment in Oc­to­ber, 2014. By its next fund­ing round in 2015, it had reached uni­corn sta­tus, ris­ing from, £190m to £1.16bn, ac­count­ing for 2.86% – near­ly one third – of the com­pa­ny’s 15.9% re­turn that year, ac­cord­ing to num­bers cit­ed by FT. By April 2019, less than two months be­fore Wood­ford was all but forced to sus­pend his fund, it had reached $2 bil­lion.

Benev­o­len­tAI and oth­er ma­chine learn­ing star­tups have been the buzz of biotech the last few years, with their tan­ta­liz­ing promise of cut­ting in­to the steep, now on av­er­age over-$2.5 bil­lion cost it takes to de­vel­op a new drug. Ex­act mod­els vary by com­pa­ny, but broad­ly they promise to cre­ate more tar­get­ed R&D by scan­ning the vast troves of sci­en­tif­ic lit­er­a­ture and mol­e­c­u­lar data­bas­es no hu­man or group of hu­mans could man­age and us­ing it to find pat­terns and de­duce which drugs or com­pounds are most like­ly to be ef­fec­tive. This month, a study from a small­er AI com­pa­ny, In­sil­i­co Med­i­cine, made both in­dus­try-fo­cused and main­stream head­lines when it showed its tech­nol­o­gy could not on­ly scan but al­so in­vent new mol­e­cules tai­lored to tack­le a dis­ease that proved ef­fec­tive in cell cul­tures and mice.

Benev­o­len­tAI ap­pears to have sim­i­lar soft­ware. It dis­tin­guish­es it­self by fo­cus­ing on rare dis­eases and by the re­search fa­cil­i­ty the com­pa­ny ac­quired in Cam­bridge last year, which it says will equip staffers to de­vel­op the drugs from iden­ti­fi­ca­tion by AI sys­tems to clin­i­cal re­search.

The com­pa­ny has part­ner­ships with As­traZeneca and No­var­tis to de­vel­op drugs for chron­ic kid­ney dis­ease and on­col­o­gy. In a state­ment, the com­pa­ny said the cash in­fu­sion will al­low it to “scale” its plat­form for dis­cov­ery and de­vel­op­ment and those col­lab­o­ra­tions will bring in “mean­ing­ful rev­enue” over the next few years.

So­cial im­age: Benev­o­len­tAI via YouTube

De­vel­op­ment of the Next Gen­er­a­tion NKG2D CAR T-cell Man­u­fac­tur­ing Process

Celyad’s view on developing and delivering a CAR T-cell therapy with multi-tumor specificity combined with cell manufacturing success
Overview
Transitioning potential therapeutic assets from academia into the commercial environment is an exercise that is largely underappreciated by stakeholders, except for drug developers themselves. The promise of preclinical or early clinical results drives enthusiasm, but the pragmatic delivery of a therapy outside of small, local testing is most often a major challenge for drug developers especially, including among other things, the manufacturing challenges that surround the production of just-in-time and personalized autologous cell therapy products.

Roger Perlmutter, Merck

#ASH19: Here’s why Mer­ck is pay­ing $2.7B to­day to grab Ar­Qule and its next-gen BTK drug, lin­ing up Eli Lil­ly ri­val­ry

Just a few months after making a splash at the European Hematology Association scientific confab with an early snapshot of positive data for their BTK inhibitor ARQ 531, ArQule has won a $2.7 billion buyout deal from Merck.

Merck is scooping up a next-gen BTK drug — which is making a splash at ASH today — from ArQule in an M&A pact set at $20 a share $ARQL. That’s more than twice Friday’s $9.66 close. And Merck R&D chief Roger Perlmutter heralded a deal that nets “multiple clinical-stage oral kinase inhibitors.”

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Game on: Re­gen­eron's BC­MA bis­pe­cif­ic makes clin­i­cal da­ta de­but, kick­ing off mul­ti­ple myelo­ma matchup with Bris­tol-My­ers

As J&J attempts to jostle past Bristol-Myers Squibb and bluebird for a landmark approval of its anti-BCMA CAR-T — and while GlaxoSmithKline maps a quick path to the FDA riding on its own BCMA-targeting antibody-drug conjugates — the bispecifics are arriving on the scene to stake a claim for a market that could cross $10 billion per year.

The main rivalry in multiple myeloma is shaping up to be one between Regeneron and Bristol-Myers, which picked up a bispecific antibody to BCMA through its recently closed $74 billion takeover of Celgene. Both presented promising first-in-human data at the ASH 2019 meeting.

FDA lifts hold on Abeon­a's but­ter­fly dis­ease ther­a­py, paving way for piv­otal study

It’s been a difficult few years for gene and cell therapy startup Abeona Therapeutics. Its newly crowned chief Carsten Thiel was forced out last year following accusations of unspecified “personal misconduct,” and this September, the FDA imposed a clinical hold on its therapy for a form of “butterfly” disease. But things are beginning to perk up. On Monday, the company said the regulator had lifted its hold and the experimental therapy is now set to be evaluated in a late-stage study.

Roche faces an­oth­er de­lay in strug­gle to nav­i­gate Spark deal past reg­u­la­tors — but this one is very short

Roche today issued the latest in a long string of delays of its $4.3 billion buyout of Philadelphia-based Spark Therapeutics. The delay comes as little surprise — it is their 10th in as many months — as their most recent delay was scheduled to expire before a key regulatory deadline.

But it is notable for its length: 6 days.

Previous extensions had moved the goalposts by about 3 weeks to a month, with the latest on November 22 expiring tomorrow. The new delay sets a deadline for next Monday, December 16, the same day by which the UK Competition and Markets Authority has to give its initial ruling on the deal. And they already reportedly have lined up an OK from the FTC staff – although that’s only one level of a multi-step process.

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Paul Hudson. Sanofi

New Sanofi CEO Hud­son adds next-gen can­cer drug tech to the R&D quest, buy­ing Syn­thorx for $2.5B

When Paul Hudson lays out his R&D vision for Sanofi tomorrow, he will have a new slate of interleukin therapies and a synthetic biology platform to boast about.

The French pharma giant announced early Monday that it is snagging San Diego biotech Synthorx in a $2.5 billion deal. That marks an affordable bolt-on for Sanofi but a considerable return for Synthorx backers, including Avalon, RA Capital and OrbiMed: At $68 per share, the price represents a 172% premium to Friday’s closing.

Synthorx’s take on alternative IL-2 drugs for both cancer and autoimmune disorders — enabled by a synthetic DNA base pair pioneered by Scripps professor Floyd Romesberg — “fits perfectly” with the kind of innovation that he wants at Sanofi, Hudson said.

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KalVis­ta's di­a­bet­ic mac­u­lar ede­ma da­ta falls short — will Mer­ck walk away?

Merck’s 2017 bet on KalVista Pharmaceuticals may have soured, after the UK/US-based biotech’s lead drug failed a mid-stage study in patients with diabetic macular edema (DME).

Two doses of the intravitreal injection, KVD001, were tested against a placebo in a 129-patient trial. Patients who continued to experience significant inflammation and diminished visual acuity, despite anti-VEGF therapy, were recruited to the trial. Typically patients with DME — the most frequent cause of vision loss related to diabetes — are treated with anti-VEGF therapies such as Regeneron’s flagship Eylea or Roche’s Avastin and Lucentis.

Ear­ly-stage can­cer biotech nails $85M C round; Flem­ming Orn­skov's Gal­der­ma scores 'break­through' sta­tus

→ Zentalis Pharmaceuticals just nabbed an $85 million round from a syndicate that includes Matrix Capital, Viking Global Investors, Redmile Group, Farallon Capital, Perceptive Advisors, Surveyor Capital and Eventide Asset Management. Their lead drug is ZN-c5, which is currently in Phase I/II trials. The biotech describes that drug as a “potential best-in-class oral Selective Estrogen Receptor Degrader for estrogen receptor-positive, HER2-negative (ER+/ HER2-) breast cancer.”

UP­DAT­ED: Ob­sE­va makes case for best-in-class hor­mone sup­pres­sive ther­a­py in pos­i­tive uter­ine fi­broid study

About a month after the Swiss biotech disclosed a failed late-stage study in its IVF program, ObsEva on Monday unveiled positive pivotal data on its experimental treatment for heavy menstrual bleeding triggered by uterine fibroids.

ObsEva in-licensed the drug, linzagolix, from Japan’s Kissei Pharmaceutical in 2015. Two doses of the drug (100 mg and 200 mg) were tested against a placebo in the 535-patient Phase III study, dubbed PRIMROSE 2, in patients who were both on and off hormonal add-back therapy (ABT).