Biotech gains ground in NYC: Sprawl­ing re­search cen­ter planned in $1.6B Mid­town project

Mak­ing good on its promise to inch its way to­ward biotech hub sta­tus, New York City is ded­i­cat­ing a mas­sive space for life sci­ence com­pa­nies to put down roots in a 105-year-old struc­ture in Mid­town.

Com­mer­cial re­al es­tate de­vel­op­ers have been work­ing to make over the old Far­ley Post Of­fice Build­ing, a Ro­man clas­sic struc­ture that spans two city blocks, in­to an elab­o­rate tran­sit hub to be called the Moyni­han Train Hall. Now, the two firms be­hind the $1.6 bil­lion over­haul have hired a bro­ker with ex­ten­sive knowl­edge of Boston’s re­al es­tate mar­ket and have de­vel­oped a brochure for the train hall that mar­kets the struc­ture to the life sci­ence in­dus­try.

David Green­baum

The brochure calls the space “Moyni­han Re­search Cen­ter at Far­ley” and it high­lights po­ten­tial de­signs for lab­o­ra­to­ry and of­fice space. De­vel­op­ers Vor­na­do Re­al­ty Trust and Re­lat­ed Cos, which have a 99-year lease to de­vel­op about 900,000 square feet of of­fice and re­tail space, told the Wall Street Jour­nal that they’re tar­get­ing new in­dus­tries that are rapid­ly grow­ing in the city.

“Just as Google and Face­book have de­cid­ed they need a ma­jor pres­ence in New York, there is the recog­ni­tion by life-sci­ences com­pa­nies that for kids who are the sci­en­tists of the fu­ture, they want to live in ur­ban ar­eas,” David Green­baum, pres­i­dent of Vor­na­do’s New York di­vi­sion, told the WSJ.

This new re­al es­tate project is the lat­est de­vel­op­ment in NYC’s jour­ney to biotech hub sta­tus. The city has seen a boost of life sci­ence ac­tiv­i­ty in re­cent years, thanks to ef­forts made by the state and city to in­cen­tivize biotech to plant roots in New York. The moves ap­pear to be work­ing, with new en­trants set­ting up shop in the city. NYU Lan­gone Med­ical Cen­ter is col­lab­o­rat­ing with Cam­bridge, MA-based Bi­o­Labs to cre­ate a 50,000-square-foot biotech co-work­ing cen­ter on Var­ick Street in Low­er Man­hat­tan. And the Long Is­land City Part­ner­ship is work­ing on a plan for a life sci­ences cen­ter in that Queens dis­trict.

Nan­cy Thorn­ber­ry

And a cou­ple months ago, NYC’s eco­nom­ic de­vel­op­ment group told me it post­ed a “want­ed ad” for an or­ga­ni­za­tion or joint ven­ture to de­vel­op and op­er­ate a life sci­ence R&D cam­pus in the city. New York is putting up $100 mil­lion in city cap­i­tal and city-owned land to spur the project, which has been coined “LifeSci NYC Hub,” the EDC said.

“NYC has proven to be an out­stand­ing place to re­cruit for biotech,” said Kally­ope CEO Nan­cy Thorn­ber­ry, who sits on the ad­vi­so­ry coun­cil for the EDC ef­fort.  “The scene is just be­gin­ning to grow here, and so there’s an un­tapped pool of tal­ent of sci­en­tists from acad­e­mia who are in­ter­est­ed in work­ing in biotech. There’s al­so a num­ber of in­di­vid­u­als want­i­ng to make tran­si­tion from phar­ma to biotech who want to live here in New York.”

Still, Thorn­ber­ry ad­mits the city has had a his­tor­i­cal prob­lem with find­ing space for biotech. WSJ re­ports the city has strug­gled to keep star­tups around as they grow.

New York has on­ly 2.8 mil­lion square feet of rentable lab space, com­pared with New Jer­sey’s 16.2 mil­lion and the 26.8 mil­lion square feet in the greater Boston area, ac­cord­ing to da­ta from the spring of 2017 col­lect­ed by re­al es­tate ser­vices firm JLL.

Im­age: Ren­der­ing of the Far­ley Post Of­fice Build­ing. SOM

Norbert Bischofberger. Kronos

Backed by some of the biggest names in biotech, Nor­bert Bischof­berg­er gets his megaround for plat­form tech out of MIT

A little over a year ago when I reported on Norbert Bischofberger’s jump from the CSO job at giant Gilead to a tiny upstart called Kronos, I noted that with his connections in biotech finance, that $18 million launch round he was starting off with could just as easily have been $100 million or more.

With his first anniversary now behind him, Bischofberger has that mega-round in the bank.

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Francesco De Rubertis

Medicxi is rolling out its biggest fund ever to back Eu­rope's top 'sci­en­tists with strange ideas'

Francesco De Rubertis built Medicxi to be the kind of biotech venture player he would have liked to have known back when he was a full time scientist.

“When I was a scientist 20 years ago I would have loved Medicxi,’ the co-founder tells me. It’s the kind of place run by and for investigators, what the Medicxi partner calls “scientists with strange ideas — a platform for the drug hunter and scientific entrepreneur. That’s what I wanted when I was a scientist.”

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Af­ter a decade, Vi­iV CSO John Pot­tage says it's time to step down — and he's hand­ing the job to long­time col­league Kim Smith

ViiV Healthcare has always been something unique in the global drug industry.

Owned by GlaxoSmithKline and Pfizer — with GSK in the lead as majority owner — it was created 10 years ago in a time of deep turmoil for the field as something independent of the pharma giants, but with access to lots of infrastructural support on demand. While R&D at the mother ship inside GSK was souring, a razor-focused ViiV provided a rare bright spot, challenging Gilead on a lucrative front in delivering new combinations that require fewer therapies with a more easily tolerated regimen.

They kept a massive number of people alive who would otherwise have been facing a death sentence. And they made money.

And throughout, John Pottage has been the chief scientific and chief medical officer.

Until now.

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Chas­ing Roche's ag­ing block­buster fran­chise, Am­gen/Al­ler­gan roll out Avastin, Her­ceptin knock­offs at dis­count

Let the long battle for biosimilars in the cancer space begin.

Amgen has launched its Avastin and Herceptin copycats — licensed from the predecessors of Allergan — almost two years after the FDA had stamped its approval on Mvasi (bevacizumab-awwb) and three months after the Kanjinti OK (trastuzumab-anns). While the biotech had been fielding biosimilars in Europe, this marks their first foray in the US — and the first oncology biosimilars in the country.

Seer adds ex-FDA chief Mark Mc­Clel­lan to the board; Her­cules Cap­i­tal makes it of­fi­cial for new CEO Scott Bluestein

→ On the same day it announced a $17.5 million Series C, life sciences and health data company Seer unveiled that it had lured former FDA commissioner and ex-CMS administrator Mark McClellan on to its board. “Mark’s deep understanding of the health care ecosystem and visionary insights on policy reform will be crucial in informing our thinking as we work to bring our liquid biopsy and life sciences products to market,” said Seer chief and founder Omid Farokhzad in a statement.

Daniel O'Day

No­var­tis hands off 3 pre­clin­i­cal pro­grams to the an­tivi­ral R&D mas­ters at Gilead

Gilead CEO Daniel O’Day’s new task hunting up a CSO for the company isn’t stopping the industry’s dominant antiviral player from doing pipeline deals.

The big biotech today snapped up 3 preclinical antiviral programs from pharma giant Novartis, with drugs promising to treat human rhinovirus, influenza and herpes viruses. We don’t know what the upfront is, but the back end has $291 million in milestones baked in.

Vas Narasimhan, AP Images

On a hot streak, No­var­tis ex­ecs run the odds on their two most im­por­tant PhI­II read­outs. Which is 0.01% more like­ly to suc­ceed?

Novartis CEO Vas Narasimhan is living in the sweet spot right now.

The numbers are running a bit better than expected, the pipeline — which he assembled as development chief — is performing and the stock popped more than 4% on Thursday as the executive team ran through their assessment of Q2 performance.

Year-to-date the stock is up 28%, so the investors will be beaming. Anyone looking for chinks in their armor — and there are plenty giving it a shot — right now focus on payer acceptance of their $2.1 million gene therapy Zolgensma, where it’s early days. And CAR-T continues to underperform, but Novartis doesn’t appear to be suffering from it.

So what could go wrong?

Actually, not much. But Tim Anderson at Wolfe pressed Narasimhan and his development chief John Tsai to pick which of two looming Phase III readouts with blockbuster implication had the better odds of success.

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On a glob­al romp, Boehringer BD team picks up its third R&D al­liance for Ju­ly — this time fo­cused on IPF with $50M up­front

Boehringer Ingelheim’s BD team is on a global deal spree. The German pharma company just wrapped its third deal in 3 weeks, going back to Korea for its latest pipeline pact — this time focused on idiopathic pulmonary fibrosis.

They’re handing over $50 million to get their hands on BBT-877, an ATX inhibitor from Korea’s Bridge Biotherapeutics that was on display at a science conference in Dallas recently. There’s not a whole lot of data to evaluate the prospects here.

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Servi­er scoots out of an­oth­er col­lab­o­ra­tion with Macro­Gen­ics, writ­ing off their $40M

Servier is walking out on a partnership with MacroGenics $MGNX — for the second time.

After the market closed on Wednesday MacroGenics put out word that Servier is severing a deal — inked close to 7 years ago — to collaborate on the development of flotetuzumab and other Dual-Affinity Re-Targeting (DART) drugs in its pipeline.

MacroGenics CEO Scott Koenig shrugged off the departure of Servier, which paid $20 million to kick off the alliance and $20 million to option flotetuzumab — putting a heavily back-ended $1 billion-plus in additional biobuck money on the table for the anti-CD123/CD3 bispecific and its companion therapies.