Bris­tol-My­ers beefs up big can­cer drug pipeline, buy­ing IFM drugs in $2.3B-plus deal

Gary Glick, cred­it: Uni­ver­si­ty of Michi­gan

At­las Ven­ture has an­oth­er block­buster biotech flip to boast about — while keep­ing an up­start in the port­fo­lio. And it’s a big one.

Just a lit­tle more than a year af­ter the At­las-in­cu­bat­ed IFM Ther­a­peu­tics achieved liftoff with a $27 mil­lion A round, with a co-lead in­vest­ment from Abing­worth, Bris­tol-My­ers Squibb has stepped in with a buy­out. Bris­tol-My­ers re­searchers are now carv­ing out the work the biotech has done on two pro­grams pro­mot­ing an in­nate im­mune re­sponse to can­cer, and spin­ning out the sig­nif­i­cant re­main­der in­to a new com­pa­ny al­so helmed by IFM co-founder Gary Glick.

To com­plete the deal, Bris­tol-My­ers is pay­ing a whop­ping $300 mil­lion up­front, with a lit­tle more than $1 bil­lion in mile­stones on each of the pre­clin­i­cal pro­grams. And there’s an un­spec­i­fied pay­ment due to se­cure an op­tion on one of its in­nate im­mune sys­tem pro­grams that al­so caught the bio­phar­ma’s eye as well as more biobucks for any oth­er drugs the are de­vel­oped out of the tech­nol­o­gy.

IFM was aimed at a prime tar­get when it jumped in­to view last sum­mer. The two lead can­cer projects look to use small mol­e­cules to ac­ti­vate NL­RP3 and STING, revving up in­nate im­mune re­spons­es that can play a com­ple­men­tary role with adap­tive im­mune ther­a­pies, like Bris­tol-My­ers’ big PD-1 drug Op­di­vo, which thwart a mech­a­nism can­cer cells use to evade an at­tack by im­mune sys­tem T cells. In­nate im­mu­ni­ty at­tacks as an im­me­di­ate guard — or first line of de­fense — against an in­vad­ing pathogen, and among oth­er things can re­cruit cells to the fight.

The biotech now will go on to con­cen­trate on the flip side of that coin: Rein­ing back in­nate im­mune at­tacks, tamp­ing down cy­tokine pro­duc­tion and re­duce chron­ic in­flam­ma­tion tied to au­to-in­flam­ma­to­ry con­di­tions like NASH, IBD and gout. And that work in­cludes NL­RP3 and some re­lat­ed mem­bers of the NLR fam­i­ly.

It’s that NL­RP3 an­tag­o­nist that Bris­tol-My­ers wants an op­tion on.

Thomas Lynch

Bris­tol-My­ers is pay­ing more than 10 times the A-round in cash for this com­pa­ny, which will not go un­no­ticed in At­las cir­cles to­day. At­las part­ner Jean-François Formela was chair­man of the com­pa­ny.

For Bris­tol-My­ers, which is look­ing to reignite its once-dom­i­nant check­point ef­fort, it rep­re­sents an­oth­er op­por­tu­ni­ty to steal a march against a slew of ri­vals all look­ing to sec­ond- and third-gen­er­a­tion tie-ups as they an­gle to keep and grow a ma­jor seg­ment of the mar­ket. Its busi­ness de­vel­op­ment group un­der Paul Bion­di has a cold and steady eye when it comes to tech deals, look­ing for ways to gain an ad­van­tage in core fields through this kind of ex­ter­nal ac­qui­si­tion.

“Tar­get­ing in­nate im­mu­ni­ty path­ways rep­re­sents a po­ten­tial­ly dif­fer­en­ti­at­ed ap­proach in im­muno-on­col­o­gy de­signed to ini­ti­ate and aug­ment im­mune re­spons­es that may help the body’s nat­ur­al de­fens­es bet­ter rec­og­nize and at­tack tu­mors,” said Thomas Lynch, ex­ec­u­tive vice pres­i­dent, chief sci­en­tif­ic of­fi­cer, Bris­tol-My­ers Squibb. “The ad­di­tion of STING and NL­RP3 ag­o­nist pro­grams broad­ens our abil­i­ty to in­ves­ti­gate ad­di­tion­al path­ways across the im­mune sys­tem and com­ple­ments our im­muno-on­col­o­gy port­fo­lio. We look for­ward to ad­vanc­ing the de­vel­op­ment of these im­por­tant pro­grams ini­ti­at­ed by Gary Glick, his lead­er­ship team and lead­ing aca­d­e­m­ic and in­dus­try ex­perts across im­munol­o­gy and on­col­o­gy.”

Vlad Coric (Biohaven)

In an­oth­er dis­ap­point­ment for in­vestors, FDA slaps down Bio­haven’s re­vised ver­sion of an old ALS drug

Biohaven is at risk of making a habit of disappointing its investors. 

Late Friday the biotech $BHVN reported that the FDA had rejected its application for riluzole, an old drug that they had made over into a sublingual formulation that dissolves under the tongue. According to Biohaven, the FDA had a problem with the active ingredient used in a bioequivalence study back in 2017, which they got from the Canadian drugmaker Apotex.

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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H1 analy­sis: The high-stakes ta­ble in the biotech deals casi­no is pay­ing out some record-set­ting win­nings

For years the big trend among dealmakers at the major players has been centered on ratcheting down upfront payments in favor of bigger milestones. Better known as biobucks for some. But with the top 15 companies competing for the kind of “transformative” pacts that can whip up some excitement on Wall Street, with some big biotechs like Regeneron now weighing in as well, cash is king at the high stakes table.

We asked Chris Dokomajilar, the head of DealForma, to crunch the numbers for us, looking over the top 20 deals for the past decade and breaking it all down into the top alliances already created in 2019. Gilead has clearly tipped the scales in terms of the coin of the bio-realm, with its record-setting $5 billion upfront to tie up to Galapagos’ entire pipeline.

Dokomajilar notes:

We’re going to need a ‘three comma club’ for the deals with over $1 billion in total upfront cash and equity. The $100 million-plus club is getting crowded at 164 deals in the last decade with new deals being added towards the top of the chart. 2019 already has 14 deals with at least $100 million in upfront cash and equity for a total year-to-date of over $9 billion. That beats last year’s $8 billion and sets a record.

Add upfronts and equity payments and you get $11.5 billion for the year, just shy of last year’s record-setting $11.8 billion.

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Part club, part guide, part land­lord: Arie Bellde­grun is blue­print­ing a string of be­spoke biotech com­plex­es in glob­al boom­towns — start­ing with Boston

The biotech industry is getting a landlord, unlike anything it’s ever known before.

Inspired by his recent experiences scrounging for space in Boston and the Bay Area, master biotech builder, investor, and global dealmaker Arie Belldegrun has organized a new venture to build a new, 250,000 square foot biopharma building in Boston’s Seaport district — home to Vertex and a number of up-and-coming biotech players.

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