Cir­ius with­draws $86M IPO as vaunt­ed 'Year of NASH' draws to bru­tal close

Cir­ius Ther­a­peu­tics didn’t wait for the gov­ern­ment shut­down to end be­fore it filed its IPO in Jan­u­ary. It was, as JP Mor­gan an­a­lysts had pre­dict­ed the month pri­or, “The Year of NASH” and Cir­ius be­lieved their Phase II pro­gram could raise $86 mil­lion.

To­day, eleven months and a slew of in­dus­try-wide NASH fail­ures lat­er, Cir­ius is with­draw­ing their IPO. The news adds per­haps 2019’s fi­nal nail in ex­pec­ta­tions that were first buried months ago.

Cir­ius was far from im­mune to the NASH tri­al fail­ures. The biotech has one prod­uct: MS­DC-0602K, a mol­e­cule de­signed to bind to part of the mi­to­chon­dria and bal­ance the me­tab­o­lism in pa­tients with NASH with fi­bro­sis. In Cir­ius’s S-1, they billed their 402-per­son EM­I­NENCE tri­al as “to our knowl­edge… the largest Phase 2b clin­i­cal tri­al fo­cused on the treat­ment of NASH.”

If so, it proved to al­so be the most vo­lu­mi­nous Phase IIb tri­al fail­ure in NASH his­to­ry. Cir­ius an­nounced last month their drug missed its pri­ma­ry end­point, fail­ing to de­crease pa­tients’ NAS score by at least 2 points against place­bo with sta­tis­ti­cal sig­nif­i­cance. Cir­ius said oth­er re­sults from the study still “po­ten­tial­ly” sup­port launch­ing a Phase III tri­al, but the news ap­pears to have sapped the biotech’s last hopes for their IPO.

Cir­ius joined some large play­ers, most no­tably Gilead, who saw their NASH dreams dashed or set back in 2019. The Cal­i­for­nia-based big biotech saw three dif­fer­ent tri­al fail­ures for its NASH drug, both as a monother­a­py and in com­bi­na­tion. Days ago, Boehringer dumped a NASH drug they ac­quired for $250 mil­lion af­ter a Phase I raised safe­ty con­cerns.

The strug­gles aren’t lim­it­ed to the clin­ic. In­vestors have ex­pressed skep­ti­cism about NASH drugs’ com­mer­cial prospects. Al­though NASH – or non­al­co­holic steato­hep­ati­tis – is thought to af­fect about 50 mil­lion Amer­i­cans and is marked by dam­ag­ing liv­er scar­ring and fat buildup, most pa­tients have nev­er heard of the con­di­tion and don’t know they have it. It re­quires a painful biop­sy to di­ag­nose, lim­it­ing the num­ber who will ever ac­tu­al­ly be di­ag­nosed. Re­im­burse­ment is al­so a ques­tion; broad­ly, Amer­i­can pay­ers have tried to lim­it their ex­po­sure to chron­ic ther­a­pies.

The re­sult has been few NASH buy­outs in 2019, al­though a cou­ple biotechs proved suc­cess­ful on pub­lic mar­kets with 89bio and Gen­fit fetch­ing $85 mil­lion and $107 mil­lion re­spec­tive­ly.

Tesla and SpaceX founder Elon Musk gestures to the audience after being recognized by President Trump following the successful launch of a Falcon 9 rocket at the Kennedy Space Center. (via Getty Images)

Tes­la chief Elon Musk teams up with Covid-19 play­er Cure­Vac to build 'R­NA mi­cro­fac­to­ries'

Elon Musk has joined the global tech crusade now underway to revolutionize vaccine manufacturing — now aimed at delivering billions of doses of a new mRNA vaccine to fight Covid-19. And he’s cutting right to the front.

In a late-night tweet Wednesday, the Tesla chief announced:

Tesla, as a side project, is building RNA microfactories for CureVac & possibly others.

That’s not a lot to go on. But the tweet comes a year after Tesla’s German division in Grohmann and CureVac filed a patent on a “bioreactor for RNA in vitro transcription, a method for RNA in vitro transcription, a module for transcribing DNA into RNA and an automated apparatus for RNA manufacturing.” CureVac, in the meantime, has discussed a variety of plans to build microfactories that can speed up the whole process for a global supply chain.

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George Yancopoulos (Regeneron)

UP­DAT­ED: Re­gen­eron co-founder George Yan­copou­los of­fers a com­bat­ive de­fense of the po­lice at a high school com­mence­ment. It didn’t go well

Typically, the commencement speech at Yorktown Central School District in Westchester — like most high schools — is an opportunity to encourage students to face the future with confidence and hope. Regeneron president and co-founder George Yancopoulos, though, went a different route.

In a fiery speech, the outspoken billionaire defended the police against the “prejudice and bias against law enforcement” that has erupted around the country in street protests from coast to coast. And for many who attended the commencement, Yancopoulos struck the wrong note at the wrong time, especially when he combatively challenged someone for interrupting his speech with a honk for “another act of cowardness.”

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Elias Zerhouni (Photo by Vincent Isore/IP3/Getty Images)

Elias Zer­houni dis­cuss­es ‘am­a­teur hour’ in DC, the de­struc­tion of in­fec­tious dis­ease R&D and how we need to prep for the next time

Elias Zerhouni favors blunt talk, and in a recent discussion with NPR, the ex-Sanofi R&D and ex-NIH chief had some tough points to make regarding the pandemic response.

Rather than interpret them, I thought it would be best to provide snippets straight from the interview.

On the Trump administration response:

It was basically amateur hour. There is no central concept of operations for preparedness, for pandemics, period. This administration doesn’t want to or has no concept of what it takes to protect the American people and the world because it is codependent. You can’t close your borders and say, “OK, we’re going to be safe.” You’re not going to be able to do that in this world. So it’s a lack of vision, basically just a lack of understanding, of what it takes to protect the American people.

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Sec­ond death trig­gers hold on Astel­las' $3B gene ther­a­py biotech's lead pro­gram, rais­ing fresh con­cerns about AAV

Seven months after Astellas shelled out $3 billion to acquire the gene therapy player Audentes, the biotech company’s lead program has been put on hold following the death of 2 patients taking a high dose of their treatment. And there was another serious adverse event recorded in the study as well, with a total of 3 “older” patients in the study affected.

The incidents are derailing plans to file for a near-term approval, which had been expected right about now.

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Look­ing for 'ex­ter­nal in­no­va­tion,' Boehringer In­gel­heim re­serves $500M+ for new Shang­hai hub

Now that Boehringer Ingelheim’s bet on contract manufacturing in China has paid off, the German drugmaker is anteing up more to get into the research game.

Boehringer has set aside $507.9 million (€451 million) for a new External Innovation Hub to be built in Shanghai over five years. The site will become one of its “strategic pillars” as the team strives to get 71 approvals — either for new products or indications — by 2030, said Felix Gutsche, president and CEO of Boehringer Ingelheim China.

Vas Narasimhan, Novartis CEO (Patrick Straub/​EPA-EFE/​Shutterstock)

No­var­tis pays $678M for kick­back scheme as Vas Narasimhan tries to dis­tance phar­ma gi­ant from shady be­hav­ior

Novartis has reached another large settlement to resolve misconduct allegations, agreeing to pay more than $678 million to settle claims that it had spent hundreds of millions of dollars on lavish dinners, so-called speaking fees and expensive alcohol “that were nothing more than bribes” to get doctors to prescribe Novartis medications.

The top-shelf alcohol and lavish meals included a $3,250 per person night at Nobu in Dallas, a $672-per person dinner at Washington DC’s Smith & Wollensky and a $314 per person meal at Sushi Roku in Pasadena, according to the Justice Department complaint. There were at least 7 trips to Hooters and fishing trips in Alaska and off the Florida coast. Each of these events were supposed to be “speaker programs” where doctors educated other doctors on a drug, but the DOJ alleged many were “bogus” wine-and-dine events where the drug was barely mentioned, if at all.  (“Nobody presented slides on the fishing trips,” the complaint says.)

No­vavax snags Ben Machielse for CMC and pro­motes a trio of staffers; Mar­ty Du­vall lands an­oth­er CEO post at On­copep­tides

Novavax has been making waves recently by securing a $384 million commitment from CEPI to cover R&D and manufacturing for its Covid-19 vaccine while also spending $167 million on a 150,000 square-foot facility. The Maryland biotech continues to shore up its leadership team as well, bringing in Ben Machielse as their EVP of CMC just a couple weeks after nabbing AstraZeneca vet Filip Dubrovsky as their new CMO. Machielse was president and CEO of Vtesse from 2014-17, and before that, he also spent more than 11 years at MedImmune and was EVP of operations for the back half of his tenure.

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Dan Gold, MEI Pharma CEO

De­vel­op­ment part­ners at MEI, Helsinn dump a high-risk PhI­II AML study af­ter con­clud­ing it would fail sur­vival goal

Four years after Switzerland’s Helsinn put $25 million of cash on the table for an upfront and near-term milestone to take MEI Pharma’s drug pracinostat into a long-running Phase III trial for acute myeloid leukemia, the partners are walking away from a clinical pileup.

The drug — an HDAC inhibitor — failed to pass muster during a futility analysis, as researchers concluded that pracinostat combined with azacitidine wasn’t going to outperform the control group in the pivotal.

No­var­tis los­es biosim­i­lar ap­peal as court up­holds a 31-year mo­nop­oly by Am­gen's En­brel

A new court ruling has strengthened Amgen’s grip on the IP estate around Enbrel, keeping biosimilars of the autoimmune and inflammatory drug at bay until 2029.

Novartis, the patent challenger, isn’t throwing in the towel yet. In a statement noting the failed appeal, its generics division Sandoz noted its reviewing options, “including potential appeal to US Supreme Court.”

It’s been almost four years since the FDA approved Erelzi, Sandoz’s copycat version of Enbrel. While sales of the Pfizer-partnered drug in the US — the market Amgen is in charge of — have dipped slightly during that time, it remains a solid megablockbuster with 2019 revenue slightly above $5 billion.