Dis­graced VC Steven Bur­rill heads to prison with 30-month sen­tence for fraud, tax eva­sion

An in­dict­ment on 34 counts of wire fraud, in­vest­ment ad­vis­er fraud, and tax eva­sion has fi­nal­ly led to prison time for ven­ture cap­i­tal­ist Steven Bur­rill.

Known in bio­phar­ma cir­cles for brash talk and a lav­ish lifestyle — sup­port­ed in part by mil­lions loot­ed from his own biotech fund — Bur­rill was first in­dict­ed last Sep­tem­ber by a fed­er­al grand ju­ry and faced a to­tal of 30 years in prison along­side mil­lions in fines.

But af­ter sign­ing a sealed plea agree­ment, Bur­rill will on­ly serve 2.5 years for the first two counts and pay $200 in a “spe­cial as­sess­ment.” A resti­tu­tion hear­ing next month will de­ter­mine whether Bur­rill must pay back $5.6 mil­lion to the fund he dipped in­to plus an ad­di­tion­al $2.9 mil­lion to the IRS for tax loss­es.

Ac­cord­ing to the De­part­ment of Jus­tice, Bur­rill con­vinced lim­it­ed part­ners to con­tribute cap­i­tal to the $283 mil­lion Bur­rill Life Sci­ences Cap­i­tal Fund III with “false and mis­lead­ing let­ters,” trans­ferred mil­lions in fees man­age­ment to en­ti­ties un­der his con­trol, and failed to re­port the in­come he fun­neled in­to his per­son­al ac­counts.

An ear­li­er SEC lit­i­ga­tion — which Bur­rill set­tled — put some ag­gre­gate num­bers on the case, dat­ing back to 2007. Over the next sev­en years, trans­fers from Fund III be­came rou­tine. About $4.6 mil­lion was used to cov­er per­son­al costs.

In spring of 2015, Bur­rill set­tled his dis­pute with the SEC, hand­ing over $6 mil­lion to cov­er what he had lift­ed out of the fund for ex­pens­es that in­clud­ed fam­i­ly va­ca­tions to St. Barts and Paris as well as jew­el­ry from Tiffany’s, gifts, car ser­vice, and pri­vate jets. The gifts went to both his girl­friend as well as his wife.

Bur­rill’s prob­lems turned crit­i­cal af­ter he had a falling out in 2014 with some of his staffers. Af­ter he fired them, they alert­ed in­vestors, who quick­ly seized con­trol of the fund and start­ed the chain of events.

Hav­ing backed biotech stal­warts like Phar­mas­set and Gala­pa­gos, cou­pled with me­dia cov­er­age from ti­tles like Sci­en­tif­ic Amer­i­can ex­tolling him as a vi­sion­ary, Bur­rill was once one of bio­phar­ma’s most vis­i­ble ven­ture cap­i­tal­ists.

He is now sched­uled to re­port to prison on March 4, 2019.


Im­age: Steven Bur­rill, fif­teen years ago, pos­ing at a fo­rum “No­bel Prizes and Biotech­nol­o­gy Gu­rus cel­e­brate DNA Dis­cov­ery’s 50th An­niver­sary” in Ly­on, France Get­ty

George Yancopoulos (Regeneron)

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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Pfiz­er shares surge on pos­i­tive im­pact of their mR­NA Covid-19 vac­cine — part­nered with BioN­Tech — in an ear­ly-stage study

Pfizer and their partners at the mRNA specialist BioNTech have published the first glimpse of biomarker data from an early-stage study spotlighting the “robust immunogenicity” triggered by their Covid-19 vaccine, which is one of the leaders in the race to vanquish the global pandemic.

Researchers selected 45 healthy volunteers 18-55 years of age for the study. They were randomized to receive 2 doses, separated by 21 days, of 10 µg, 30 µg, or 100 µg of BNT162b1, “a lipid nanoparticle-formulated, nucleoside-modified, mRNA vaccine that encodes trimerized SARS-CoV-2 spike glycoprotein RBD.” Their responses were compared against the effect of a natural, presumably protective defense offered by a regular infection.

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An ex­pe­ri­enced biotech is stitched to­geth­er from transpa­cif­ic parts, with 265 staffers and a fo­cus on ‘new bi­ol­o­gy’

Over the past few years, different teams at a pair of US-based biotechs and in labs in Japan have labored to piece together a group of cancer drug programs, sharing a single corporate umbrella with research colleagues in Japan. But now their far-flung operations have been knit together into a single unit, creating a pipeline with 10 cancer drug development programs — going from early-stage right into Phase III — and a host of discovery projects managed by a collective staff of some 265 people.

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New stan­dard of care? FDA hands Pfiz­er, Mer­ck KGaA an OK for Baven­cio in blad­der can­cer

The breakthrough therapy designation Pfizer and Merck KGaA notched for Bavencio in bladder cancer has quickly paved way for a full approval.

The PD-L1 drug is now sanctioned as a first-line maintenance treatment for patients with locally advanced or metastatic urothelial carcinoma, applicable in cases where cancer hasn’t progressed after platinum-containing chemotherapy.

Petros Grivas, the principal investigator of the supporting Phase III JAVELIN Bladder 100, called the approval “one of the most significant advances in the treatment paradigm in this setting in 30 years.”

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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Covid-19 roundup: Vac­cines will need to beat place­bo by 50% to qual­i­fy for FDA OK; UK tri­al drops Kale­tra

The FDA will set the bar for approving a Covid-19 vaccine at 50% efficacy, the Wall Street Journal reported, meaning any successful candidate will have to reduce the risk of coronavirus disease by at least half compared to placebo.

That requirement is part of guidance that the agency is set to release later today, laying out detailed criteria for vaccine developers — some of whom are eyeing an OK by the end of the year, in line with expectations at Operation Warp Speed.

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Joseph Kim, Inovio CEO (Andrew Harnik, AP Images)

Pos­i­tive Covid-19 vac­cine da­ta? New mouse study? OWS in­clu­sion? Yep, but some­how, the usu­al tid­bits from In­ovio back­fire

You don’t go more than 40 years in biotech without ever getting a product to market unless you can learn the art of writing a promotional press release. And Inovio captures the prize in baiting the hook.

Tuesday morning Inovio, which has been struggling to get its Covid-19 vaccine lined up for mass manufacturing, put out a release that touched on virtually every hot button in pandemic PR.

There was, first and foremost, an interim snapshot of efficacy from their Phase I program for INO-4800.

On a roll, Mer­ck blazes through a new seg­ment of the bio­mark­er trail

Merck has notched an approval for using Keytruda to treat a biomarker-based subset of first-line colorectal cancer patients with unresectable or metastatic tumors, as the pharma giant continues to find new niches for its blockbuster PD-1 star.

The OK is significant in a number of ways. Not only does it build on an accelerated approval for all tumors characterized as microsatellite instability-high (MSI-H) or mismatch repair deficient (dMMR); it also marks the first single treatment for colorectal cancer that doesn’t contain chemotherapy.