Cel­gene scoops up fresh­man au­toim­mune start­up Delinia in $775M buy­out

Four months ago, At­las Ven­ture part­ner Saurabh Sa­ha set up shop at the new­born Delinia with a pre­clin­i­cal au­toim­mune drug, $35 mil­lion in start­up cash and a skele­ton crew. To­day, Cel­gene says it struck a deal to buy the start­up for $300 mil­lion up front and up to $475 mil­lion in mile­stones, adding a new drug for its au­toim­mune and in­flam­ma­tion pipeline.

Cel­gene is get­ting a pre­clin­i­cal lead pro­gram in the deal, which cen­ters pri­mar­i­ly on DEL106, as well as re­lat­ed sec­ond gen­er­a­tion pro­grams. DEL106 is an IL-2 mutein Fc fu­sion pro­tein de­signed to up­reg­u­late reg­u­la­to­ry T cells (Tregs), im­mune cells that are crit­i­cal to main­tain­ing nat­ur­al self-tol­er­ance — and avoid­ing au­toim­mune dis­eases.

There’s a long list of dis­eases trig­gered when the bal­ance of Tregs and T ef­fec­tor cells is dis­rupt­ed and the im­mune sys­tem starts to at­tack healthy tis­sue. By ex­pand­ing Tregs, amp­ing up ac­tiv­i­ty, Sa­ha set out be­liev­ing that Delinia’s drug can re­store im­mune tol­er­ance and home­osta­sis, stop­ping dis­eases like lu­pus, Type 1 dis­eases and fi­brot­ic dis­eases like scle­ro­der­ma.

The deal clear­ly comes with a big cash pay­out to At­las — which has nev­er been re­luc­tant to take a good mul­ti­ple for ear­ly-stage as­sets like this — as well as Sofinno­va Part­ners, the Paris-based VC group that co-led the round. And there’s al­so plen­ty of up­side left if the tech works as hoped. For Cel­gene, it’s yet an­oth­er ac­qui­si­tion for a deal team that has been strik­ing a broad range of pacts over the years.

In a blog post this morn­ing, At­las’ Bruce Booth wrote:

Over the past decade, Cel­gene has built an im­pres­sive I&I port­fo­lio of both in­ter­nal­ly-dis­cov­ered and ex­ter­nal­ly-sourced pro­grams. Ote­zla (apremi­last) is their flag­ship I&I med­i­cine to­day (fastest pso­ri­a­sis drug to hit $1B in sales from launch) and was dis­cov­ered at Cel­gene; be­hind it are sev­er­al ad­di­tion­al home­grown pro­grams ear­li­er in de­vel­op­ment (e.g., im­munomod­u­la­tor CC-220 and an­ti-fi­brot­ic CC-90001). Cel­gene’s I&I pipeline al­so has sev­er­al high pro­file ex­ter­nal­ly-sourced ther­a­pies, in­clud­ing mon­gersen/GED-0301 (via a li­cense with No­gra Phar­ma) and ozan­i­mod (via ac­qui­si­tion of Re­cep­tos). They’ve al­so been at the fore­front of chang­ing the au­toim­mune treat­ment par­a­digm, such as with the re­cent deal with Anokion on tol­er­ance in­duc­tion. The Delinia pro­grams fit nice­ly in­to this grow­ing port­fo­lio, and com­ple­ment sev­er­al of these I&I ap­proach­es – which was a big dri­ver for Cel­gene’s over­all in­ter­est in the sto­ry.

Delinia ex­ecs Sa­ha and Jeff Tong, chair­man, told me in a fol­low-up in­ter­view that the ear­ly buy­out came up as they be­gan to strike up in­tro­duc­to­ry con­tacts aimed at es­tab­lish­ing some longterm talks with key play­ers in the field. Their sto­ry of a new tech­nol­o­gy that could have a pro­found im­pact on au­toim­mune dis­eases — even though it was still pre­clin­i­cal — at­tract­ed keen at­ten­tion from sev­er­al play­ers, in­clud­ing an un­ex­pect­ed in­bound call from one com­pa­ny that helped get the bid­ding go­ing for far more than what At­las had in­vest­ed in seed and ear­ly A cash.

“It was not a for­mal auc­tion,” Tong tells me, “but there was a very com­pet­i­tive lev­el of in­ter­est.”

Not yet de­cid­ed is what hap­pens with the Delinia team. Sa­ha says those dis­cus­sions are con­tin­u­ing with Cel­gene.

Co-founder and the new chief sci­en­tif­ic of­fi­cer at Delinia, Jef­frey Greve, is cred­it­ed with much of the dis­cov­ery work for their cy­tokine. Com­pa­ny co-founder Michael Rosen­blum is the as­sis­tant pro­fes­sor of der­ma­tol­ogy at the UCSF School of Med­i­cine.

“Delinia is at the fore­front of ad­vanc­ing new ap­proach­es to treat­ing pa­tients with se­vere and de­bil­i­tat­ing au­toim­mune dis­eases,” said Ru­pert Vessey, FR­CP DPhil, Pres­i­dent of Re­search and Ear­ly De­vel­op­ment for Cel­gene Cor­po­ra­tion. “We look for­ward to pro­gress­ing DEL106 in­to the clin­ic next year.”

Vas Narasimhan (Photographer: Jason Alden/Bloomberg via Getty Images)

No­var­tis de­tails plans to axe 8,000 staffers as Narasimhan be­gins sec­ond phase of a glob­al re­org

We now know the number of jobs coming under the axe at Novartis, and it isn’t small.

The pharma giant is confirming a report from Swiss newspaper Tages-Anzeiger that it is chopping 8,000 jobs out of its 108,000 global staffers. A large segment will hit right at company headquarters in Basel, as CEO Vas Narasimhan axes some 1,400 of a little more than 11,000  jobs in Switzerland.

The first phase of the work is almost done, the company says in a statement to Endpoints News. Now it’s on to phase two. In the statement, Novartis says:

Endpoints News

Keep reading Endpoints with a free subscription

Unlock this story instantly and join 144,600+ biopharma pros reading Endpoints daily — and it's free.

Lina Gugucheva, NewAmsterdam Pharma CBO

Phar­ma group bets up to $1B-plus on the PhI­II res­ur­rec­tion of a once dead-and-buried LDL drug

Close to 5 years after then-Amgen R&D chief Sean Harper tamped the last spade of dirt on the last broadly focused CETP cholesterol drug — burying their $300 million upfront and the few remaining hopes for the class with it — the therapy has been fully resurrected. And today, the NewAmsterdam Pharma crew that did the Lazarus treatment on obicetrapib is taking another big step on the comeback trail with a €1 billion-plus regional licensing deal, complete with close to $150 million in upfront cash.

Endpoints News

Keep reading Endpoints with a free subscription

Unlock this story instantly and join 144,600+ biopharma pros reading Endpoints daily — and it's free.

Bob Nelsen (Lyell)

As bear mar­ket con­tin­ues to beat down biotech, ARCH clos­es a $3B ear­ly-stage fund

One of the biggest names in biotech investing has a whole lot of new money to spend.

ARCH Venture Partners closed its 12th venture fund early Wednesday morning, the firm said, bringing in almost $3 billion to invest in early-stage biotechs. The move comes about a year and a half after ARCH announced its previous fund, for almost $2 billion back in January 2021.

In a statement, ARCH managing director and co-founder Bob Nelsen appeared to brush off concerns about the broader market troubles, alluding to the downturn that’s seen several biotechs downsize and the XBI fall back to almost pre-pandemic levels.

Endpoints News

Keep reading Endpoints with a free subscription

Unlock this story instantly and join 144,600+ biopharma pros reading Endpoints daily — and it's free.

Hank Safferstein, Generian CEO

Astel­las sub­sidiary to part­ner with Pitts­burgh up­start in search for 'un­drug­gable' pro­teins

As Astellas continues its drive to build out its gene therapy portfolio and capabilities, a subsidiary of the Japanese pharma company has entered into a collaboration with a little-known Pittsburgh biotech.

Astellas-owned Mitobridge and Generian Pharmaceuticals announced on Wednesday that they will work together in a new deal for “undruggable” protein targets. Generian will net an undisclosed upfront payment and could get up to $180 million in milestones, should anything from its platform prove successful, as well as single-digit royalties on global net sales.

Sanofi to cut in­sulin prices for unin­sured from $99 to $35, match­ing the in­sulin cap com­ing through Con­gress

As the House-passed bill to cap the monthly price of insulin at $35 nationwide makes its way for a Senate vote soon, Sanofi announced Wednesday morning that beginning next month it will cut the monthly price of its insulins for uninsured Americans to $35, down from $99 previously.

The announcement from Sanofi, which allows the uninsured to buy one or multiple Sanofi insulins (Lantus, Insulin Glargine U-100, Toujeo, Admelog, and Apidra) at $35 for a 30-day supply effective July 1, follows House passage (232-193) of the monthly cap in March, with just 12 Republicans voting in favor of the measure.

How pre­pared is bio­phar­ma for the cy­ber dooms­day?

One of the largest cyberattacks in history happened on a Friday, Eric Perakslis distinctly remembers.

Perakslis, who was head of Takeda’s R&D Data Sciences Institute and visiting faculty at Harvard Medical School at the time, had spent that morning completing a review on cybersecurity for the British Medical Journal. Moments after he turned it in, he heard back from the editor: “Have you heard what’s going on right now?”

Endpoints Premium

Premium subscription required

Unlock this article along with other benefits by subscribing to one of our paid plans.

Adam Simpson, Icosavax CEO

Reel­ing from Covid flop, Icosavax says its RSV can­di­date passed ear­ly test. But in­vestors need some more con­vinc­ing

Three months separated from a disappointing readout of its Covid-19 vaccine, Icosavax is back with what it calls positive topline data for a different VLP vaccine candidate — although investors aren’t impressed.

IVX-121, a vaccine candidate for respiratory syncytial virus (RSV), appeared to generate “robust” immune responses among both young and older adults, as measured by neutralizing antibodies, and appeared generally well-tolerated, Icosavax reported.

Shehnaaz Suliman, ReCode Therapeutics CEO (Photo by Jennifer Leahy)

Pfiz­er, Sanofi-backed LNP out­fit goes back to the well and draws $120M for its trek to the clin­ic

A preclinical biotech touting a five-lipid drug delivery platform is looking to break out of its preclinical mold, and it just secured a sizable raise to do just that.

ReCode Therapeutics reported Wednesday morning that Leaps by Bayer and Matrix Capital Management affiliate AyurMaya co-led a Series B extension round, adding $120 million to the biotech’s previous Series B haul of $80 million. The biotech has been backed by several players in Big Pharma, notably Pfizer and Sanofi from its original Series B close last fall. And in this extension — featuring all new investors, CEO Shehnaaz Suliman tells Endpoints News — Amgen’s VC arm jumped on board.

Endpoints News

Keep reading Endpoints with a free subscription

Unlock this story instantly and join 144,600+ biopharma pros reading Endpoints daily — and it's free.

A Mer­ck part­ner is sucked in­to the fi­nan­cial quag­mire as key lender calls in a note

Another biotech standing on shaky financial legs has fallen victim to the bears.

Merck partner 4D Pharma has reported that a key lender, Oxford Finance, shoved the UK company into administration after calling in a $14 million loan they couldn’t immediately make good on. Trading in their stock was halted with a market cap that had fallen to a mere £30 million.

“Despite the very difficult prevailing market conditions,” 4D reported on Friday, the biotech had been making progress on finding some new financing and turned to Oxford with an alternative late on Thursday and then again Friday morning.