Deep tech, round 2: DCVC Bio bags $350M fund to chase the tip of the life sci­ence spear

It took one trip from San Fran­cis­co to Van­cou­ver for Kier­sten Stead and her DCVC Bio crew to feel con­fi­dent about throw­ing their weight — and cash — be­hind Ab­Cellera.

Kier­sten Stead

CEO Carl Hansen’s aca­d­e­m­ic back­ground and the po­ten­tial of the plat­form, which com­bined ma­chine vi­sion and ro­bot­ics with mi­croflu­idics, were promis­ing. But the site vis­it sealed the Se­ries A deal, where DCVC was the lead and on­ly in­vestor.

“We saw a com­pa­ny that had a high­ly ad­van­taged method for ba­si­cal­ly turn­ing an­ti­body de­vel­op­ment in­to a deep search mech­a­nism, sim­i­lar to what Google might do,” she said.

As Ab­Cellera bur­nish­es its pro­file through an Eli Lil­ly-part­nered an­ti­body de­signed to help end the pan­dem­ic, Stead and John Hamer, the oth­er man­ag­ing part­ner of DCVC Bio, have closed $350 mil­lion to bet on com­pa­nies that sim­i­lar­ly sit at the in­ter­sec­tion of “deep tech” and life sci­ences.

DCVC Bio II, just like its pre­de­ces­sor, will look for ear­ly-stage com­pa­nies. Se­ries A, seed rounds should com­prise the ma­jor­i­ty of the port­fo­lio, but they al­so don’t mind rolling up their sleeves to help spin out a start­up if the op­por­tu­ni­ty aris­es.

John Hamer

The way Stead de­scribes it, these are places where com­pu­ta­tion is an “ab­solute core com­pe­ten­cy” rather than an af­ter­thought or sim­ply a sup­port­ing func­tion.

“Gen­er­al­ly speak­ing, our com­pa­nies gen­er­ate their own da­ta, they have their own de­vel­op­ers and they’re build­ing nov­el AI, nov­el al­go­rithms on their pro­pri­etary da­ta to ad­dress re­cal­ci­trant prob­lems across the life sci­ences,” she said.

The team — most of whom worked to­geth­er at Mon­san­to Growth Ven­tures be­fore mov­ing un­der DCVC — is think­ing big. Cit­ing “the triple threat of cli­mate change, an in­creas­ing glob­al pop­u­la­tion and frag­ile glob­al sup­ply chains,” they al­so want to tap in­to agri­cul­ture and in­dus­tri­al biotech­nol­o­gy.

When it comes to ther­a­peu­tics, Stead is be­gin­ning to see the con­flu­ence of dif­fer­ent modal­i­ties from pro­tein degra­da­tion to cell ther­a­pies and gene edit­ing.

Chas­ing those emerg­ing arcs of com­pu­ta­tion and bi­ol­o­gy has brought DCVC Bio to new in­ven­tions in ro­bot­ics and au­toma­tion — think Or­ca Bio’s au­to­mat­ed sys­tem for man­u­fac­tur­ing cell grafts — as well as liv­ing med­i­cines, such as the ge­net­i­cal­ly en­gi­neered mi­crobes at Novome. Phys­i­cal in­tel­li­gent sys­tems will loom large to com­ple­ment soft­ware break­throughs, she pre­dict­ed, while things like re­in­force­ment learn­ing (al­go­rithms that can gen­er­ate their own da­ta) could work around some of the cur­rent con­straints in bi­o­log­i­cal re­search.

Even though phar­ma these days is clear­ly cog­nizant of the need to in­te­grate new com­pu­ta­tion­al tech­nolo­gies, Stead said they face the re­al chal­lenge of re­cruit­ing peo­ple who have ex­pe­ri­ence set­ting up com­mer­cial AI. That’s not to say they don’t play a key role in bring­ing the com­pounds gen­er­at­ed on new plat­forms to­ward the mar­ket; they may just come in lat­er in the process.

“A com­mon thread of en­tre­pre­neurs that we in­vest in and build com­pa­nies with is that they ran X com­pu­ta­tion­al group at X phar­ma­ceu­ti­cal com­pa­ny but re­al­ized that they couldn’t start from scratch and build it from the ground up,” she said, “and and they were re­al­ly pro­found­ly lim­it­ed by that, and want­ed to start a start­up so that they could do X right, what­ev­er their par­tic­u­lar area of in­ter­est is.”

DCVC man­ag­ing part­ners Matt Ocko and Zachary Bogue said on their blog re­cent­ly the fact that the new fund was raised en­tire­ly dur­ing the pan­dem­ic high­lights the ap­petite for even more. Their first fund has backed some ef­forts to ad­dress the cur­rent health­care cri­sis; it’s time to find “the next set of so­lu­tions to the next set of prob­lems.”

The DCT-OS: A Tech­nol­o­gy-first Op­er­at­ing Sys­tem - En­abling Clin­i­cal Tri­als

As technology-enabled clinical research becomes the new normal, an integrated decentralized clinical trial operating system can ensure quality, deliver consistency and improve the patient experience.

The increasing availability of COVID-19 vaccines has many of us looking forward to a time when everyday things return to a state of normal. Schools and teachers are returning to classrooms, offices and small businesses are reopening, and there’s a palpable sense of optimism that the often-awkward adjustments we’ve all made personally and professionally in the last year are behind us, never to return. In the world of clinical research, however, some pandemic-necessitated adjustments are proving to be more than emergency stopgap measures to ensure trial continuity — and numerous decentralized clinical trial (DCT) tools and methodologies employed within the last year are likely here to stay as part of biopharma’s new normal.

Onno van de Stolpe, Galapagos CEO (Thierry Roge/Belga Mag/AFP via Getty Images)

Gala­pa­gos chops in­to their pipeline, drop­ping core fields and re­or­ga­niz­ing R&D as the BD team hunts for some­thing 'trans­for­ma­tive'

Just 5 months after Gilead gutted its rich partnership with Galapagos following a bitter setback at the FDA, the Belgian biotech is hunkering down and chopping the pipeline in an effort to conserve cash while their BD team pursues a mission to find a “transformative” deal for the company.

The filgotinib disaster didn’t warrant a mention as Galapagos laid out its Darwinian restructuring plans. Forced to make choices, the company is ditching its IPF molecule ’1205, while moving ahead with a Phase II IPF study for its chitinase inhibitor ’4617.

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Ron DePinho (file photo)

A 'fly­over' biotech launch­es in Texas with four Ron De­Pin­ho-found­ed com­pa­nies un­der its belt

In his 13 years at Genzyme, Michael Wyzga noticed something about East Coast drugmakers. Execs would often jet from Boston or New York to San Francisco to find more assets, and completely miss the work being done in flyover states, like Texas or Wisconsin.

“If it doesn’t come out of MGH or MIT or Harvard, probably not that interesting,” he said of the mindset.

Now, he and some well-known industry players are looking to change that, and they’ve reeled in just over $38 million to do it.

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CEO Khurem Farooq (Gyroscope)

Hours be­fore ex­pect­ed de­but, Gy­ro­scope post­pones its IPO as 2 oth­er biotechs hold the line on their march to Nas­daq

Editor’s note: Interested in following biopharma’s fast-paced IPO market? You can bookmark our IPO Tracker here.

In a surprising turn of events, UK-based Gyroscope Therapeutics has postponed its IPO mere hours before it was set to debut on Nasdaq.

Working on a gene therapy for wet AMD, Gyroscope was all set and ready to go public earlier this week, setting terms for a $142 million raise with a price range of $20 to $22. But in the wee hours of Friday morning, the company put out a press release saying they would delay their debut “in light of market conditions,” CEO Khurem Farooq said in a statement.

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Stéphane Bancel, Getty

Mod­er­na CEO brush­es off US sup­port for IP waiv­er, eyes more than $19B in Covid-19 vac­cine sales in 2021

Moderna is definitively more concerned with keeping pace with Pfizer in the race to vaccinate the world against Covid-19 than it is with Wednesday’s decision from the Biden administration to back an intellectual property waiver that aims to increase vaccine supplies worldwide.

In its first quarter earnings call on Thursday, Moderna CEO Stéphane Bancel shrugged off any suggestion that the newly US-backed intellectual property waiver would impact his company’s vaccine or bottom line. Still, the company’s stock price fell by about 9% in early morning trading.

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Angela Merkel (AP Photo/Michael Sohn)

Covid-19 roundup: Pfiz­er sub­mits vac­cine for full ap­proval; Merkel op­pos­es Biden pro­pos­al to sus­pend IP for vac­cines

Pfizer and BioNTech said Friday that they’ve submitted a biologics license application to the FDA for full approval of their mRNA vaccine for those over the age of 16.

How long it will take the FDA to decide on the BLA will be set once it’s been formally accepted by the agency.

Peter Marks, director of the FDA’s Center for Biologics Evaluation and Research, previously told Endpoints News that the review of the BLA should take between three and four months, but it may be even faster than that.

David Coman, Science 37

Amid vir­tu­al tri­al craze, Sci­ence 37 earns uni­corn sta­tus and a trip to Nas­daq on the back of SPAC deal

Editor’s note: Interested in following biopharma’s fast-paced IPO market? You can bookmark our IPO Tracker here.

As the Covid-19 pandemic made conventional trials impossible for some drugmakers, more and more companies moved to decentralize their clinical studies, accelerating business for tech developers like Science 37. Leveraging that boost, the company is on the verge of a SPAC merger, landing unicorn status and its very own stock ticker.

UP­DAT­ED: EMA safe­ty com­mit­tee seeks more in­fo on heart in­flam­ma­tion fol­low­ing Pfiz­er Covid-19 vac­cine

The European Medicines Agency’s safety committee said Friday that it’s aware of cases of inflammation of the heart muscle and inflammation of the membrane around the heart, mainly reported following vaccination with Pfizer’s Covid-19 vaccine, known in Europe as Comirnaty.

“There is no indication that these cases are due to the vaccine,” the EMA’s Pharmacovigilance Risk Assessment Committee said.

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As­traZeneca caps PD-L1/CT­LA-4/chemo com­bo come­back with OS win. Is treme­li­mum­ab fi­nal­ly ready for ap­proval?

AstraZeneca’s closely-watched POSEIDON study continues to be the rare bright spot in its push for an in-house PD-L1/CTLA-4 combo.

Combining Imfinzi and tremelimumab with physicians’ choice of chemotherapy helped patients with stage IV non-small cell lung cancer live longer, the company reported — marking the first time the still-experimental tremelimumab has demonstrated an OS benefit.

For AstraZeneca and CEO Pascal Soriot, the positive readout — which is devoid of numbers — offers much-needed validation for the big bet they made on Imfinzi plus tremelimumab, after the PD-L1/CTLA-4 regimen failed multiple trials in head and neck cancer as well as lung cancer.

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