Black Di­a­mond dou­bles in val­ue hours in­to Nas­daq de­but, mark­ing hot start to the 2020 IPO run

There are few al­losteric ther­a­pies ap­proved, but in­vestors seem to like the idea — and the lat­est duo to pur­sue it.

Black Di­a­mond Ther­a­peu­tics, the young on­col­o­gy com­pa­ny from Tarce­va vets David Ep­stein and Eliz­a­beth Buck, opened its IPO yes­ter­day at $19 per share. By 11:15 am, it was up to $35 per share. And, with a slight rise in the last min­utes, it closed at $39.48. That’s a 108% in­crease on its open­ing ten­der. They col­lect­ed over $200 mil­lion.  The mar­ket cap dou­bled from around $670 mil­lion to $1.3 bil­lion.

On Fri­day, right on the heels of that quick coup, Ar­cutis Bio­ther­a­peu­tics priced its IPO at $17 — the top of the range. That of­fer­ing raised $159 mil­lion through the sale of 9.4 mil­lion shares. It’s start­ing out with a mar­ket val­ue of $657 mil­lion.

The end-of-week surge sug­gests that de­spite some head­winds in­vestors still want to get in ear­ly on what they deem the most promis­ing com­pa­nies, par­tic­u­lar­ly in on­col­o­gy. That bodes well for the start of the 2020 IPO sea­son and will like­ly in­spire oth­ers to jump in­to the game ear­ly — though there’s no way to pre­dict what will hap­pen down the road. The biotech IPO win­dow has been wide open for 5 years now, mark­ing a very long stretch.

Black Di­a­mond’s first-day gain dwarfed the mean for biotech IPOs. Since the start of 2019, they’ve risen on av­er­age 16% on day one and 60% over­all, ac­cord­ing to Re­nais­sance Cap­i­tal.

Black Di­a­mond had raised mon­ey rapid­ly in the pri­vate mar­kets as well. They were the first com­pa­ny to come out of Ver­sant’s Basel-based in­cu­ba­tor and launched with an ini­tial $20 mil­lion from the ven­ture firm. With­in a month of emerg­ing from stealth mode in De­cem­ber 2018, they an­nounced an $85 mil­lion Se­ries B fund­ing. Less than a year lat­er, they net­ted an­oth­er $85 mil­lion. They then im­me­di­ate­ly filed for an IPO.

Buck and Ep­stein are far from alone in pur­su­ing al­losteric ther­a­pies for can­cer and oth­er dis­eases. No­var­tis has a Phase I pro­gram for an al­losteric SHP2 in­hibitor, Rev­o­lu­tion Med­i­cines — now pur­su­ing its own $100 mil­lion IPO –  has an al­losteric SHP2 it li­censed from Sanofi for $50 mil­lion, and back in 2016, Gilead paid Nim­bus $40o mil­lion for fir­so­co­stat, an al­losteric in­hibitor for NASH. (Which did not per­form well last year).

Black Di­a­mond is be­hind those oth­er pro­grams. They have yet to en­ter the clin­ic.

In­vestors are large­ly bet­ting on their MAP plat­form, which works to map out al­losteric mu­ta­tions across the body. Al­losteric sites are grooves away from a pro­tein’s ac­tive bind­ing site but which can nev­er­the­less af­fect the bind­ing site and the pro­tein’s over­all func­tion. A mu­ta­tion there could af­fect the pro­tein’s func­tion, po­ten­tial­ly dri­ving cer­tain can­cers. Sci­en­tists have long known about these sites, but have strug­gled un­til re­cent­ly to find them.

A com­pa­ny with promis­ing map­ping soft­ware could have a sig­nif­i­cant leg up. An­oth­er biotech try­ing to do that, Hotspot Ther­a­peu­tics, launched in 2018 with a $45 mil­lion Se­ries A.

Sanofi brings in 4 new ex­ec­u­tives in con­tin­ued shake-up, as vac­cines and con­sumer health chief head out the door

In the middle of Sanofi’s multi-pronged race to develop a Covid-19 vaccine, David Loew, the head of their sprawling vaccines unit, is leaving – part of the final flurry of moves in the French giant’ months-long corporate shuffle that will give them new-look leadership under new CEO Paul Hudson.

The company also said today that Alan Main, the head of their consumer healthcare unit, is out, and they named 4 executives to fill new or newly vacated positions, 3 of whom come from both outside both Sanofi and from Pharma.

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As­traZeneca trum­pets the 'mo­men­tous' da­ta they found for Tagris­so in an ad­ju­vant set­ting for NSCLC — but many of the ex­perts aren’t cheer­ing along

AstraZeneca is rolling out the big guns this evening to provide a salute to their ADAURA data on Tagrisso at ASCO.

Cancer R&D chief José Baselga calls the disease-free survival data for their drug in an adjuvant setting of early stage, epidermal growth factor receptor-mutated NSCLC patients following surgery “momentous.” Roy Herbst, the principal investigator out of Yale, calls it “transformative.”

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Pablo Legorreta, founder and CEO of Royalty Pharma AG, speaks at the annual Milken Institute Global Conference in Beverly Hills, California (Patrick T. Fallon/Bloomberg via Getty Images)

Cap­i­tal­iz­ing Pablo: The world’s biggest drug roy­al­ty buy­er is go­ing pub­lic. And the low-key CEO di­vulges a few se­crets along the way

Pablo Legorreta is one of the most influential players in biopharma you likely never heard of.

Over the last 24 years, Legorreta’s Royalty Pharma group has become, by its own reckoning, the biggest buyer of drug royalties in the world. The CEO and founder has bought up a stake in a lengthy list of the world’s biggest drug franchises, spending $18 billion in the process — $2.2 billion last year alone. And he’s become one of the best-paid execs in the industry, reaping $28 million from the cash flow last year while reserving 20% of the cash flow, less expenses, for himself.

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Dan O'Day, Gilead CEO (Andrew Harnik, AP Images)

UP­DAT­ED: Gilead leas­es part­ner rights to TIG­IT, PD-1 in a $2B deal with Ar­cus. Now comes the hard part

Gilead CEO Dan O’Day has brokered his way to a PD-1 and lined up a front row seat in the TIGIT arena, inking a deal worth close to $2 billion to align the big biotech closely with Terry Rosen’s Arcus. And $375 million of that comes upfront, with cash for the buy-in plus equity, along with $400 million for R&D and $1.22 billion in reserve to cover opt-in payments and milestones..

Hotly rumored for weeks, the 2 players have formalized a 10-year alliance that starts with rights to the PD-1, zimberelimab. O’Day also has first dibs on TIGIT and 2 other leading programs, agreeing to an opt-in fee ranging from $200 million to $275 million on each. There’s $500 million in potential TIGIT milestones on US regulatory events — likely capped by an approval — if Gilead partners on it and the stars align on the data. And there’s another $150 million opt-in payments for the rest of the Arcus pipeline.

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Paul Hudson, Sanofi CEO (Getty Images)

Sanofi CEO Paul Hud­son has $23B burn­ing a hole in his pock­et. And here are some hints on how he plans to spend that

Sanofi has reaped $11.1 billion after selling off a big chunk of its Regeneron stock at $515 a share. And now everyone on the M&A side of the business is focused on how CEO Paul Hudson plans to spend it.

After getting stung in France for some awkward politicking — suggesting the US was in the front of the line for Sanofi’s vaccines given American financial support for their work, versus little help from European powers — Hudson now has the much more popular task of managing a major cash cache to pull off something in the order of a big bolt-on. Or two.

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Ab­b­Vie wins an ap­proval in uter­ine fi­broid-as­so­ci­at­ed heavy bleed­ing. Are ri­vals My­ovant and Ob­sE­va far be­hind?

Women expel on average about 2 to 3 tablespoons of blood during their time of the month. But with uterine fibroids, heavy bleeding is typical — a third of a cup or more. Drugmakers have been working on oral therapies to try and stem the flow, and as expected, AbbVie and their partners at Neurocrine Biosciences are the first to make it across the finish line.

Known chemically as elagolix, the drug is already approved as a treatment for endometriosis under the brand name Orilissa. It targets the GnRH receptor to decrease the production of estrogen and progesterone.

David Chang, Allogene CEO (Jeff Rumans)

Head­ed to PhII: Al­lo­gene CEO David Chang com­pletes a pos­i­tive ear­ly snap­shot of their off-the-shelf CAR-T pi­o­neer

Allogene CEO David Chang has completed the upbeat first portrait of the biotech’s off-the-shelf CAR-T contender ALLO-501 at virtual ASCO today, keeping all eyes on a drug that will now try to go on to replace the first-wave personalized pioneers he helped create.

The overall response rate outlined in Allogene’s abstract for treatment-resistant patients with non-Hodgkin lymphoma slipped a little from the leadup, but if you narrow the patient profile to treatment-naïve patients — removing the 3 who had previous CAR-T therapy who didn’t respond, leaving 16 — the ORR lands at 75% with a 44% complete response rate. And 9 of the 12 responders remained in response at the data cutoff, offering a glimpse on durability that still has a long way to go before it can be completely nailed down.

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Roger Perlmutter, Merck R&D chief (YouTube)

Backed by BAR­DA, Mer­ck jumps in­to Covid-19: buy­ing out a vac­cine, part­ner­ing on an­oth­er and adding an­tivi­ral to the mix

Merck execs are making a triple play in a sudden leap into the R&D campaign against Covid-19. And they have more BARDA cash backing them up on the move.

Tuesday morning the pharma giant simultaneously announced plans to buy an Austrian biotech that has been working on a preclinical vaccine candidate, added a collaboration on another vaccine with the nonprofit IAVI and inked a deal with Ridgeback Biotherapeutics on an early-stage antiviral.

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As­traZeneca’s $7B ADC suc­ceeds where Roche failed, im­prov­ing sur­vival in gas­tric can­cer

Another day, another win for Enhertu.

The antibody-drug conjugate AstraZeneca promised up-to $7 billion to partner on has had a quite a few months, beginning with splashy results in a Phase II breast cancer trial, a rapid approval and, earlier this month, breakthrough designations in both non-small cell lung cancer and gastric cancer.

Now, at ASCO, the British pharma and their Japanese partner, Daiichi Sankyo, have shown off the data that led to the gastric cancer designation, which they’ll take back to the FDA. In a pivotal, 187-person Phase II trial, Enhertu shrunk tumors in 42.9% of third-line patients with HER2-positive stomach cancer, compared with 12.5% in a control arm where doctors prescribed their choice of therapy. Progression-free survival was 5.4 months for Enhertu compared to 3.5 months for the control.