Deep­en­ing US foot­print, As­traZeneca-part­nered French biotech In­nate shoots for $100M IPO

Fresh off of a 20th birth­day cel­e­bra­tion, French biotech In­nate Phar­ma filed for a US IPO worth up to $100 mil­lion. They de­tailed in their fil­ings a strat­e­gy to roll cash in­to pre­clin­i­cal work, ad­vanc­ing the tri­als for two drugs tar­get­ing blood can­cer and sol­id tu­mors and fur­ther test­ing the check­point in­hibitor mon­al­izum­ab, while al­so build­ing a com­mer­cial in­fra­struc­ture to mar­ket and cap­i­tal­ize on their trade­mark leukemia drug Lu­mox­i­ti.

Jen­nifer But­ler

The im­muno-on­col­o­gy biotech ac­quired its first big drug last year as it li­censed Lu­mox­i­ti from As­traZeneca. It’s the first FDA-ap­proved drug for hairy cell leukemia in 20 years. But, as they write in their F-1, al­though the com­pa­ny will be ful­ly re­spon­si­ble for mar­ket­ing the drug by 2020, they “cur­rent­ly have no sales, mar­ket­ing or com­mer­cial prod­uct dis­tri­b­u­tion or­ga­ni­za­tion and have no ex­pe­ri­ence in mar­ket­ing or man­ag­ing the man­u­fac­tur­ing of prod­ucts.”

Long­time As­traZeneca ex­ec Jen­nifer But­ler is now the head of In­nate’s US op­er­a­tions.

The com­pa­ny brought in €93 mil­lion last year (around $100 mil­lion), and €59 mil­lion in the first half of 2019 (about $65 mil­lion). They have re­ceived $550 mil­lion over the last 10 years in up­front pay­ments, mile­stone pay­ments and eq­ui­ty in­vest­ments through part­ner­ships with As­traZeneca and Sanofi and oth­ers, and they es­ti­mate they’re el­i­gi­ble for up to $5.5 bil­lion in var­i­ous pay­ments from such col­lab­o­ra­tions.

The three largest stock­hold­ers are No­vo Nordisk, Med­Im­mune (which is owned by As­traZeneca) and Bpifrance Par­tic­i­pa­tions, with co-founder Hervé Brail­ly hold­ing a 2.1% slice. No­vo ac­quired its 13.9% stake in ex­change for a new im­muno-on­col­o­gy tar­get af­ter a vaunt­ed In­nate leukemia ther­a­py flunked a Phase II tri­al. The biotech is cur­rent­ly list­ed on Eu­ronext Paris.

As of June 30, they had $220 mil­lion in cash, cash equiv­a­lents, short term in­vest­ments and non-cur­rent fi­nan­cial as­sets.

The com­pa­ny is work­ing on three class­es of prod­ucts: broad-spec­trum im­mune check­point in­hibitors, tu­mor anti­gen tar­get­ing, and sup­pres­sive fac­tors of the TME.

They are cur­rent­ly test­ing mon­al­izum­ab, their lead drug, in col­lab­o­ra­tion with As­traZeneca for sol­id tu­mors, in­clud­ing SC­CHN (head and neck) and CRC (col­orec­tal). They part­nered out that drug as part of the same deal that li­censed Lu­mox­i­ti to them, with As­traZeneca ex­er­cis­ing its $100 mil­lion for an op­tion on the drug, with an­oth­er $100 mil­lion pay­out at the first Phase III de­vel­op­ment and $825 mil­lion in po­ten­tial mile­stone mon­ey.

Pre­lim­i­nary da­ta from the lat­est 40-per­son ex­pan­sion to a Phase II tri­al showed a 27.5% re­sponse rate and one com­plete re­sponse. Fol­low-up da­ta are com­ing with­in the year.

As­traZeneca al­so agreed to fun­nel $20 mil­lion in­to four pre­clin­i­cal pro­grams, each po­ten­tial­ly worth $355 mil­lion, and pur­chased their 9.8% stake in In­nate for $72 mil­lion. In­nate paid $50 mil­lion for Lu­mox­i­ti.

This year, they al­so gained FDA fast-track sta­tus for the an­ti­body IPH4102 for treat­ment-re­sis­tant Sézary syn­drome, an ag­gres­sive form of lym­phoma, in ad­di­tion to or­phan drug des­ig­na­tions in the US and Eu­rope.

Lu­mox­i­ti was ap­proved un­der pri­or­i­ty re­view af­ter a Phase III tri­al demon­strat­ed a 75% re­sponse rate, with 30% of pa­tients re­spond­ing com­plete­ly. But there were less than 100 pa­tients and the drug was no­table among the half of all FDA-ap­proved treat­ments that were stamped based on a sin­gle tri­al in 2018.

Once fu­ri­ous over No­var­tis’ da­ta ma­nip­u­la­tion scan­dal, the FDA now says it’s noth­ing they need to take ac­tion on

Back in the BP era — Before Pandemic — the FDA ripped Novartis for its decision to keep the agency in the dark about manipulated data used in its application for Zolgensma while its marketing application for the gene therapy was under review.

Civil and criminal sanctions were being discussed, the agency noted in a rare broadside at one of the world’s largest pharma companies. Notable lawmakers cheered the angry regulators on, urging the FDA to make an example of Novartis, which fielded Zolgensma at $2.1 million — the current record for a one-off therapy.

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Covid-19 roundup: GSK, Am­gen tai­lor R&D work to fit the coro­n­avirus age; Doud­na's ge­nomics crew launch­es di­ag­nos­tic lab

You can add Amgen and GSK to the list of deep-pocket drug R&D players who are tailoring their pipeline work to fit a new age of coronavirus.

Following in the footsteps of a lineup of big players like Eli Lilly — which has suspended patient recruitment for drug studies — Amgen and GSK have opted to take a more tailored approach. Amgen is intent on circling the wagons around key studies that are already fully enrolled, and GSK has the red light on new studies while the pandemic plays out.

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In a stun­ning set­back, Amarin los­es big patent fight over Vas­cepa IP. And its high-fly­ing stock crash­es to earth

Amarin’s shares $AMRN were blitzed Monday evening, losing billions in value as reports spread that the company had lost its high-profile effort to keep its Vascepa patents protected from generic drugmakers.

Amarin had been fighting to keep key patents under lock and key — and away from generic rivals — for another 10 years, but District Court Judge Miranda Du in Las Vegas ruled against the biotech. She ruled that:
(A)ll the Asserted Claims are invalid as obvious under 35 U.S.C.§ 103. Thus, the Court finds in favor of Defendants on Plaintiff’s remaining infringementclaim, and in their favor on their counterclaims asserting the invalidity of the AssertedClaims under 35 U.S.C. § 103.

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Covid-19 roundup: J&J, BAR­DA set ear­ly 2021 fin­ish line for $1B vac­cine race; FDA al­lows emer­gency drug use, ahead of piv­otal da­ta

J&J has zeroed in on a Covid-19 vaccine candidate that it hopes to begin testing in humans by September this year — with the extraordinary goal of getting it ready for emergency use in early 2021. And together with BARDA, it’s committing $1 billion to make it happen.

That kind of accelerated timeline would fall on the fast side of NIAID director Anthony Fauci’s well-publicized prediction that it would be another 12 to 18 months before a vaccine can be available for public use. A Phase I trial of Moderna’s mRNA vaccine began two weeks ago, and both the biotech and fellow mRNA player CureVac have discussed similar, if not even faster, timelines for emergency use among healthcare workers.

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As­traZeneca says its block­buster Farx­i­ga proved to be a game-chang­er in CKD — wrap­ping PhI­II ear­ly

If the FDA can still hold up its end of the bargain, AstraZeneca is already on a short path to scooping up a cutting-edge win with a likely approval for their SGLT2 drug Farxiga in cutting the risk of heart failure. Now the pharma giant says it can point to solid evidence that the drug — initially restricted to diabetes — also works for chronic kidney disease, potentially adding a blockbuster indication for the franchise.

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It is 'kind of a proven tech­nol­o­gy': Hep B vac­cine mak­er joins glob­al hunt for coro­n­avirus vac­cine

Using lab-grown proteins that are engineered to mimic the architecture of viruses to induce an immune response, VBI Vaccines is joining the hunt for a coronavirus vaccine — harnessing technology that has initially been proved safe in early trials as a prophylactic for cytomegalovirus (CMV) infection.

Unlike the raft of the companies in the Covid-19 vaccine race — including Moderna, CureVac and J&J — VBI is taking a pan-coronavirus approach, by developing a vaccine that will encompass Covid-19, severe acute respiratory syndrome (SARS), and Middle East respiratory syndrome (MERS).

Can a pair of top AveX­is alum­ni steer a new gene ther­a­py up­start to R&D glo­ry? 3 VCs bet $60M on it

VCs love few things more than a proven executive team when it comes to launching a new company. And now a group of A-listers has turned to a pair of top execs out of AveXis to steer the latest gene therapy player into the clinic.

The biotech is Waltham, MA-based Affinia and the two execs are Sean Nolan and Rick Modi — the former CEO and CBO respectively of AveXis, the gene therapy pioneer that fetched $8.7 billion in a sale to Novartis. Nolan has now taken the chairman’s role at Affinia while Modi moves up to the CEO post at the company.

Un­de­terred by a pan­dem­ic, Gilde Health­care rais­es their largest fund yet

When Pieter van der Meer started raising the capital for Gilde Healthcare’s fifth fund in the waning months of 2019, he had his eyes on a different chain of events that could change the healthcare system and perhaps even play to his firm’s advantage: The US presidential election.

Since raising their third fund in 2011, the 34-year-old Dutch firm had focused on value-based care. They chose late-stage biotechs that came up with new devices and delivery systems for de-risked established compounds, and when they chose preclinical biotechs, they spoke with potential pharma partners, payers and regulators to ask where and at what prices the drug made sense. As the Democratic primary became a contest over how to lower healthcare costs, it looked like a strategy that could pay off.

Daniel O'Day (AP Images)

Gilead CEO Dan O'­Day of­fers a de­tailed ex­pla­na­tion on remde­sivir ac­cess — re­as­sur­ing an­a­lysts that Covid-19 da­ta are com­ing fast

After coming under heavy fire from consumer groups ready to pummel them for grabbing the FDA’s orphan status for remdesivir — reserved to encourage the development of rare disease therapies — Gilead CEO Daniel O’Day had some explaining to do about the company’s approach to providing access to this drug to patients suffering from Covid-19. And he set aside time over the weekend to patiently explain how they are making their potential pandemic drug available in a new program — one he feels can better be used to address a growing pack of infected patients desperately seeking remdesivir under compassionate use provisions.

In addition to trying to reassure patients that they will once again have an avenue to pursue access, O’Day also reassured some analysts who had been fretting that China’s quick comeback from the coronavirus outbreak could derail its ultra-fast schedule for testing the drug in patients. The data are still expected in a few weeks, he says in the letter, putting the readout in April.

O’Day emphasizes that Gilead intends to pursue a pricing approach that will make this drug widely available — if it proves effective and safe. But no one is quite sure just what the longterm value would be, given the work being done on a variety of vaccines that may be rolled out as early as this fall — at least to the most heavily threatened groups.

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