Cel­gene sweet­ened the pot for ex­ec team ahead of Bris­tol-My­ers merg­er an­nounce­ment

A be­lea­guered Cel­gene $CELG, which was re­port­ed­ly in merg­er talks with Bris­tol-My­ers $BMY since Sep­tem­ber, had hatched a plan to sweet­en the pot for its ex­ec­u­tive team ahead of the his­toric $74 bil­lion deal an­nounced on Thurs­day.

In an SEC fil­ing fil­ing post­ed on Fri­day, Cel­gene said its CEO, CFO, pres­i­dent of re­search & ear­ly de­vel­op­ment and chief cor­po­rate strat­e­gy of­fi­cer be­came par­tic­i­pants in the the com­pa­ny’s ex­ec­u­tive sev­er­ance plan as of Jan­u­ary 2. Their par­tic­i­pa­tion en­ti­tles them to sev­er­ance ben­e­fits up­on a ter­mi­na­tion of em­ploy­ment, with­out cause, or due to the em­ploy­ee’s res­ig­na­tion for “good rea­son” — ei­ther would be con­sid­ered a “qual­i­fy­ing ter­mi­na­tion.”

If the qual­i­fy­ing ter­mi­na­tion oc­curs on, or with­in two years fol­low­ing, a change in con­trol of Cel­gene, the sev­er­ance ben­e­fits are gen­er­al­ly: “a cash sev­er­ance pay­ment equal to 2.5x (or 3x, in the case of the CEO) mul­ti­plied by the sum of the of­fi­cer’s an­nu­al base salary and tar­get an­nu­al cash in­cen­tive op­por­tu­ni­ty…and full ac­cel­er­at­ed vest­ing of all out­stand­ing eq­ui­ty awards grant­ed un­der the com­pa­ny’s eq­ui­ty plan,” among oth­ers, the fil­ing not­ed.

The move is per­ti­nent, con­sid­er­ing cuts and lay­offs are all but cer­tain if the deal is closed. Bris­tol-My­ers ex­pects to achieve $2.5 bil­lion in an­nu­al cost re­duc­tions by 2022 as it merges the two op­er­a­tions. If Cel­gene CEO Mark Alles, who has large­ly borne the brunt of the crit­i­cism for his com­pa­ny’s bruised rep­u­ta­tion and share price, is shown the door, he could po­ten­tial­ly walk away with a tidy sum.

In a sep­a­rate fil­ing, it was re­vealed that ei­ther com­pa­ny would have to cough up a break-up fee of $2.2 bil­lion if the deal were not con­sum­mat­ed, de­pend­ing on the firm re­spon­si­ble for block­ing the merg­er.

In a re­port by Bloomberg on Fri­day, it was re­vealed that Cel­gene raised the price of its flag­ship drug, Revlim­id, by 3.5% to $719.82 on Thurs­day, the day the Bris­tol deal was an­nounced. The biotech, which per­sis­tent­ly hikes the prices of its top-sell­ing treat­ments, leans heav­i­ly on Revlim­id rev­enue and is dread­ing the loom­ing loss of patent pro­tec­tion on the prod­uct in the Unit­ed States.

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.

Endpoints News

Basic subscription required

Unlock this story instantly and join 55,000+ biopharma pros reading Endpoints daily — and it's free.

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.

Endpoints News

Basic subscription required

Unlock this story instantly and join 55,000+ biopharma pros reading Endpoints daily — and it's free.

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.”

Endpoints News

Basic subscription required

Unlock this story instantly and join 55,000+ biopharma pros reading Endpoints daily — and it's free.

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.

Endpoints News

Basic subscription required

Unlock this story instantly and join 55,000+ biopharma pros reading Endpoints daily — and it's free.

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.

Endpoints News

Basic subscription required

Unlock this story instantly and join 55,000+ biopharma pros reading Endpoints daily — and it's free.

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.