Billing it­self as the first AI biotech to launch hu­man tri­als, Re­cur­sion adds $121M C round

Chris Gib­son

Billing it­self as the first AI biotech with pro­grams in the clin­ic, Salt Lake City-based Re­cur­sion now has a $121 mil­lion bankroll to start gath­er­ing hu­man da­ta to see if it’s on the right track. 

“We’re try­ing to build this dis­cov­ery en­gine,” Re­cur­sion CEO Chris Gib­son tells me ahead of the C round news. “We now have the first two pro­grams in the clin­ic.” And that, he adds, qual­i­fies as a first for any AI es­tab­lish­ment “that ac­tu­al­ly have some­thing in the clin­ic.”

Well, maybe. 

While a buzzy AI field is billed by many as the next big tech wave bound to in­flu­ence the iden­ti­fi­ca­tion and de­vel­op­ment of new drugs, tap­ping in­to a grow­ing moun­tain of da­ta to find clues on where and how to look for new drugs, Re­cur­sion’s two lead pro­grams fit more in line with long-es­tab­lished drug de­vel­op­ment norms.

Dean Li

Gib­son read­i­ly con­cedes that one of his 2 clin­i­cal stage drugs, REC-994 for cere­bral cav­ernous mal­for­ma­tion, came out of the lab of co-founder Dean Li, now head of trans­la­tion­al re­search at Mer­ck. REC-2282 for neu­rofi­bro­mato­sis type 2 was in-li­censed from Ohio State some months ago, af­ter a failed Arno sim­ply hand­ed it back to the uni­ver­si­ty fol­low­ing their de­ci­sion to liq­ui­date. It’s not hard to find the drug via Google, and the ear­li­er work done in neu­rofi­bro­mato­sis in 2011.

That may not be a clas­sic AI/ma­chine learn­ing play, says Gib­son, but it does re­flect the com­pa­ny’s abil­i­ty when it comes to what he calls “da­ta ar­bi­trage.” 

“Most of the in­dus­try has thought of AI dis­cov­ery, mak­ing some chem­i­cal struc­ture,” says the CEO. “We don’t need to know the tar­get; we use our plat­form to find ap­pli­ca­tions that peo­ple wouldn’t ex­pect.”

And he says he’s built a work­force of 152 — mas­sive by start­up stan­dards — to cre­ate a plat­form that does com­ply more close­ly with what we’ve come to ex­pect in an AI/ML biotech.

Says Gib­son: “Now that the com­pa­ny has grown we are now do­ing com­pu­ta­tion­al chem­istry.”

Gib­son is quick to tout the high­lights of the biotech’s fast growth; from the rapid ad­di­tion of new staffers, their 100,000-square-foot fa­cil­i­ty in a con­vert­ed Dick’s Sport­ing Goods fa­cil­i­ty in down­town Salt Lake City and an op­tion from Take­da on can­di­dates for 2 rare dis­eases.

The new mon­ey in the C round an­nounced to­day comes from a host of non­tra­di­tion­al biotech in­vestors. Bail­lie Gif­ford’s Scot­tish Mort­gage In­vest­ment Trust led the round, with In­ter­moun­tain Ven­tures, Re­gents of the Uni­ver­si­ty of Min­neso­ta, Texas Tech Uni­ver­si­ty Sys­tem, and se­lect an­gel in­vestors com­ing in for the first time. All pri­or in­sti­tu­tion­al in­vestors par­tic­i­pat­ed, in­clud­ing Lux Cap­i­tal, Da­ta Col­lec­tive, Mubadala Ven­tures, Two Sig­ma Ven­tures, Ob­vi­ous Ven­tures, Fe­li­cis Ven­tures, Epic Ven­tures, Men­lo Ven­tures, AME Cloud Ven­tures, and CRV.

So­cial im­age: In­tel­li­gent Health AI via Youtube

Eli Lil­ly’s first PhI­II show­down for their $1.6B can­cer drug just flopped — what now?

When Eli Lilly plunked down $1.6 billion in cash to acquire Armo Biosciences a little more than a year ago, the stars seemed aligned in its favor. The jewel in the crown they were buying was pegilodecakin, which had cleared the proof-of-concept stage and was already in a Phase III trial for pancreatic cancer.

And that study just failed.

Lilly reported this morning that their cancer drug flopped on overall survival when added to FOLFOX (folinic acid, 5-FU, oxaliplatin), compared to FOLFOX alone among patients suffering from advanced pancreatic cancer.

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Mi­rati preps its first look at their KRAS G12C con­tender, and they have to clear a high bar for suc­cess

If you’re a big KRAS G12C fan, mark your calendars for October 28 at 4:20 pm EDT.

That’s when Mirati $MRTX will unveil its first peek at the early clinical data available on MRTX849 in presentations at the AACR-NCI-EORTC International Conference on Molecular Targets and Cancer Therapeutics in Boston.

Mirati has been experiencing the full effect of a rival’s initial success at targeting the G12C pocket found on KRAS, offering the biotech some support on the concept they’re after — and biotech fans a race to the top. Amgen made a big splash with its first positive snapshot on lung cancer, but deflated sky-high expectations as it proved harder to find similar benefits in other types of cancers.

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The FDA will hus­tle up an ex­pe­dit­ed re­view for As­traZeneca’s next shot at a block­buster can­cer drug fran­chise

AstraZeneca paid a hefty price to partner with Daiichi Sankyo on their experimental antibody drug conjugate for HER2 positive breast cancer. And they’ve been rewarded with a fast ride through the FDA, with a straight shot at creating another blockbuster oncology franchise.

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Sean Park­er helps cre­ate a CRISPRed cell ther­a­py 2.0 play — and he’s got a high-pro­file set of lead­ers on the team

You can rack up one more high-profile debut effort in the wave of activity forming around cell therapy 2.0. It’s another appealing Bay Area group that’s attracted some of the top hands in the business to a multi-year effort to create a breakthrough. And they have $85 million in hand to make that first big step to the clinic.

Today it’s Ken Drazan and the team at South San Francisco-based ArsenalBio that are coming from behind the curtain for a public bow, backed by billionaire Sean Parker and a collection of investors that includes Beth Seidenberg’s new venture investment operation based in LA.
Drazan — a J&J Innovation vet with a long record of entrepreneurial endeavors — exited the stage in 2018 when his last mission ended as he stepped aside as president of Grail. It wasn’t long, though, before he was helping out with a business plan for ArsenalBio that revolved around the work of a large group of interconnected scientists supported by the Parker Institute for Cancer Immunology.
The biotech started by putting together an “arsenal” of technologies aimed at making cell therapies for cancer much, much better than the rather crude first-generation drugs that hit the market from Novartis and Kite.
Their drugs have become the baseline against which all others are being measured.
“The technology set we’re developing is independent of the chassis,” Drazan tells me. “It doesn’t have to be autologous (extracted from the patient) or allogeneic (off the shelf). It doesn’t have to be a T cell, it could be a B cell.” But they are starting out on the autologous side, where they have the most knowledge and insight into manufacturing techniques.
It also doesn’t have to be close to the clinic.
Drazan expects the biotech will be working its way through preclinical operations for “a few years,” with enough money from the $85 million launch round to get into humans.
By today’s superheated fundraising standards, that’s not a huge amount of cash. Lyell, another cell therapy 2.0 startup we featured last week, raised $600 million in a year, including a big chunk of cash from GlaxoSmithKline. Drazan is interested in dealmaking as well, but he also knows he has the cash necessary to support the company for a good run — a key part of what it takes to bring together a stellar team of top players.

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Med­ical an­i­ma­tion: Mak­ing it eas­i­er for the site and the pa­tient to un­der­stand

Medical animation has in recent years become an increasingly important tool for conveying niche information to a varied audience, particularly to those audiences without expertise in the specialist area. Science programmes today, for example, have moved from the piece-to-camera of the university professor explaining how a complex disease mechanism works, to actually showing the viewer first-hand what it might look like to shrink ourselves down to the size of an ant’s foot, and travel inside the human body to witness these processes in action. Effectively communicating a complex disease pathophysiology, or the novel mechanism of action of a new drug, can be complex. This is especially difficult when the audience domain knowledge is limited or non-existent. Medical animation can help with this communication challenge in several ways.
Improved accessibility to visualisation
Visualisation is a core component of our ability to understand a concept. Ask 10 people to visualise an apple, and each will come up with a slightly different image, some apples smaller than others, some more round, some with bites taken. Acceptable, you say, we can move on to the next part of the story. Now ask 10 people to visualise how HIV’s capsid protein gets arranged into the hexamers and pentamers that form the viral capsid that holds HIV’s genetic material. This request may pose a challenge even to someone with some virology knowledge, and it is that inability to effectively visualise what is going on that holds us back from fully understanding the rest of the story. So how does medical animation help us to overcome this visualisation challenge?

Hal Barron, GSK's president of R&D and CSO, speaks to Endpoints News founder and editor John Carroll in London at Endpoints' #UKBIO19 summit on October 8, 2019

[Video] Cel­e­brat­ing tri­al fail­ures, chang­ing the cul­ture and al­ly­ing with Cal­i­for­nia dream­ers: R&D chief Hal Bar­ron talks about a new era at GSK

Last week I had a chance to sit down with Hal Barron at Endpoints’ #UKBIO19 summit to discuss his views on R&D at GSK, a topic that has been central to his life since he took the top research post close to 2 years ago. During the conversation, Barron talked about changing the culture at GSK, a move that involves several new approaches — one of which involves celebrating their setbacks as they shift resources to the most promising programs in the pipeline. Barron also discussed his new alliances in the Bay Area — including his collaboration pact with Lyell, which we covered here — frankly assesses the pluses and minuses of the UK drug development scene, and talks about his plans for making GSK a much more effective drug developer.

This is one discussion you won’t want to miss. Insider and Enterprise subscribers can log-in to watch the video.

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CSL ac­cus­es ri­val Pharm­ing of par­tic­i­pat­ing in a scheme to rip off IP on HAE while re­cruit­ing se­nior R&D staffer

Pharming has landed in the middle of a legal donnybrook after recruiting a senior executive from a rival R&D team at CSL. The Australian pharma giant slapped Pharming with a lawsuit alleging that the Dutch biotech’s new employee, Joseph Chiao, looted a large cache of proprietary documents as he hit the exit. And they want it all back.
Federal Judge Juan Sanchez in the Eastern District Pennsylvania court issued an injunction on Tuesday prohibiting Chiao from doing any work on HAE or primary immune deficiency in his new job and demanding that he return any material from CSL that he may have in his possession. And he wants Pharming to tell its employees not to ask for any information on the forbidden topics.
For its part, Pharming fired off an indignant response this morning denying any involvement in extracting any kind of IP from CSL, adding that it’s cooperating in the internal probe that CSL has underway.

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UP­DAT­ED: Alex­ion pays $930M to buy out Achillion and its promis­ing com­pan­ion drug to Soliris

After a series of stock-crunching setbacks over the years, Achillion enjoyed a turn in the sun a few weeks ago as the FDA blessed their lead drug danicopan (ACH-4471) — a complementary therapy for PNH patients taking Alexion’s Soliris — with a breakthrough drug designation after taking a look at some solid supporting Phase II data.

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From left to right: Lilian Kim, Associate Director Business Development; John Moller, CEO; Yooni Kim, Executive Director, Asia Operations; Michelle Park, Director South Korea Operations.

Novotech CRO sees 26% growth in Asia tri­al ac­tiv­i­ty from biotechs, but still plen­ty of ca­pac­i­ty

As the Asia-Pacific clinical trials sector continues to grow rapidly, Novotech the Asia-Pacific-based CRO is seeing biotech clinical activity up by 26%. But says there is still plenty of capacity in the region that features advanced medical facilities, supportive regulatory environments, and more than 2.3 billion people, largely treatment naïve, living in urban areas.

China, South Korea and Australia have the most studies registered as recruiting or about to recruit according to ClinicalTrials.Gov.