Dear Kite: With 2300% up­side, we blazed an amaz­ing trail

With the $12 bil­lion Kite buy­out now signed, sealed and de­liv­ered, CEO Arie Bellde­grun has penned a thank-you note to every­one who helped along the way.

Here it is, in its en­tire­ty.


To My Kite Fam­i­ly –

Arie Bellde­grun

For all of us, the Kite ex­pe­ri­ence has been more than just an in­vest­ment op­por­tu­ni­ty or a step­ping stone in a pro­fes­sion­al ca­reer. Over the past eight years, Kite has be­come an in­te­gral part of our lives and a foun­da­tion from which hope be­came more than just an as­pi­ra­tion.

To our pa­tients: You put your faith in us and an ex­per­i­men­tal tech­nol­o­gy known as CAR T ther­a­py. That faith al­lowed a small proof-of-con­cept tri­al to po­ten­tial­ly pro­duce the first-and-on­ly ap­proved CAR T ther­a­py for mul­ti­ple forms of large B-cell lym­phoma. We now have the po­ten­tial to treat thou­sands of pa­tients in need and the means to ex­pand the tech­nol­o­gy to treat many oth­er tu­mors.

To clin­i­cians, our stead­fast part­ners: Your tire­less ef­forts in con­duct­ing clin­i­cal tri­als, with the sole pur­pose of giv­ing your pa­tients hope when no oth­er op­tions re­mained, is to be com­mend­ed. You should be proud. Your de­ter­mi­na­tion and ex­per­tise have paved the way for oth­ers to fol­low.

To our in­vestors: I am hon­ored and hum­bled by your con­tin­ued be­lief in us. Some of you joined me in the nascent stages of Kite, where you in­vest­ed in sim­ply my word, pas­sion and be­lief. While oth­er in­vestors came lat­er, all of you stood by our side, time and time again, even when oth­ers tried to in­fuse doubt. You have been wise ad­vi­sors and fierce sen­tinels.

To our Board of Di­rec­tors: Your sup­port and guid­ance is be­yond what any­one may read in an SEC fil­ing. You have been our guardians and teach­ers, each bring­ing your own set of ex­pe­ri­ences and in­sights for the bet­ter­ment of every­one in­volved in Kite. You have helped us build and pre­serve a bright fu­ture for cell ther­a­py.

To our UCLA friends and Sci­en­tif­ic Founders: Back in 2009, your un­pop­u­lar be­lief that cel­lu­lar im­munother­a­py not on­ly held great promise for the treat­ment of pa­tients but could al­so be brought to pa­tients with oth­er­wise in­cur­able can­cer was para­mount to the suc­cess of Kite. Your friend­ship, ex­per­tise and sup­port of the en­tire Kite fam­i­ly for the past eight years is the ul­ti­mate ex­am­ple of a suc­cess­ful aca­d­e­m­ic-in­dus­try part­ner­ship. I can­not thank you enough for all you have done for Kite.

To our em­ploy­ees: I can’t imag­ine work­ing along­side a braver, more pas­sion­ate or more com­mit­ted group of peo­ple, of­ten­times at the qui­et sac­ri­fice of your per­son­al lives. Your de­vo­tion has been with­out lim­it or ques­tion, even in the face of skep­tics.

In a span of just a few short years, we grew from few­er than 10 em­ploy­ees to al­most 700. The com­pa­ny’s val­ue in­creased 2300% from the time of our IPO to near­ly $12 bil­lion with the ac­qui­si­tion by Gilead Sci­ences. Our clos­ing $180 per share price rep­re­sents not just a 960% ap­pre­ci­a­tion from the IPO price of $17 per share, but the largest ever pre-com­mer­cial bio­phar­ma ac­qui­si­tion.

Kite has changed so many lives in just eight years. I know it has changed mine. I hope it has changed yours, too.

In this, my last of­fi­cial up­date as Pres­i­dent and CEO of Kite, I re­main filled with hope. Hope that Kite’s maid­en flight is mere­ly the first leg of a jour­ney, with an ul­ti­mate des­ti­na­tion more amaz­ing than any of us can to­day con­ceive. Hope that we, in­di­vid­u­al­ly, and col­lec­tive­ly, re­main fo­cused on the cure and con­tin­ue to work to­ward this no­ble pur­suit. And, hope that I get the chance to shake your hand and per­son­al­ly thank each of you for what you have done to make the Kite dream pos­si­ble.

Hope is on­ly the be­gin­ning, not the strat­e­gy.

Thank you all again for your years of sup­port. None of this would have been pos­si­ble with­out each of you.

Arie

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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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.

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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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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No­var­tis jumps in­to Covid-19 vac­cine hunt, as Big Phar­ma and big biotech com­mit to bil­lions of dos­es

After spending most of the pandemic on the sidelines, Novartis is offering its aid in the race to develop a Covid-19 vaccine.

AveXis, the Swiss pharma’s gene therapy subsidiary, has agreed to manufacture the vaccine being developed by Massachusetts Eye and Ear and Massachusetts General Hospital. The biotech will begin manufacturing this month, while the vaccine undergoes further preclinical testing. They’ve agreed to provide the vaccine for free for clinical trials beginning in the second half of 2020, but have not disclosed financials for after.

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Roger Perlmutter, Merck R&D chief (YouTube)

UP­DAT­ED: 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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