Duchenne MD dad piv­ots from last-minute alert on FDA's par­tial hold to $125M IPO for Sol­id Bio

In most IPOs, risk fac­tors can range from any­thing from “our lead drug may not work” to the threat of famine and plague — they’re in­tend­ed to cov­er vir­tu­al­ly every con­tin­gency.

Ilan Gan­ot

But as Ilan Gan­ot was out drum­ming up sup­port for his $125 mil­lion IPO for Sol­id Bio­sciences in re­cent months, there was one key risk fac­tor that hadn’t been in­clud­ed. The FDA had put its lead drug on par­tial clin­i­cal hold in No­vem­ber, with reg­u­la­tors re­fus­ing to al­low re­searchers to start test­ing the high dose.

On­ly the low dose was green-light­ed for the tri­al, the com­pa­ny dis­closed in a tardy amend­ment to the IPO to­day, but the high dose was stymied un­til Sol­id could “sub­mit ad­di­tion­al CMC in­for­ma­tion that demon­strates that man­u­fac­tur­ing ca­pac­i­ty and prod­uct at­trib­ut­es can sup­port the high-dose group.”

And that’s not all.

Ear­li­er this month the biotech not­ed that gene ther­a­py pi­o­neer James Wil­son from Penn had re­signed from their sci­en­tif­ic ad­vi­so­ry board due to ris­ing safe­ty con­cerns re­lat­ed to high dos­ing us­ing the vec­tor he had de­vel­oped.

Re­cent­ly, James M. Wil­son, M.D., Ph.D., re­signed from our Sci­en­tif­ic Ad­vi­so­ry Board cit­ing emerg­ing con­cerns about the pos­si­ble risks of high sys­temic dos­ing of AAV. If in the fu­ture we are un­able to demon­strate that any such ad­verse events were not caused by the ad­min­is­tra­tion process or re­lat­ed pro­ce­dures, the FDA, the Eu­ro­pean Com­mis­sion, the EMA or oth­er reg­u­la­to­ry au­thor­i­ties could or­der us to cease fur­ther de­vel­op­ment of, or de­ny ap­proval of, SGT-001 or our oth­er prod­uct can­di­date for any or all tar­get­ed in­di­ca­tions.

The news, though, didn’t hit un­til Sol­id Bio was wrap­ping up the pric­ing. Sol­id has been plan­ning to sell about 6 mil­lion shares at $16 to $18 a share, with a mar­ket val­u­a­tion of rough­ly $550 mil­lion. Thurs­day evening, Sol­id put out an an­nounce­ment that they had sold 7.8 mil­lion shares at $16 apiece.

Their suc­cess comes amid a wave of fresh hits on the IPO front. Men­lo Ther­a­peu­tics bagged $119 mil­lion in an up­sized of­fer­ing to get the sea­son un­der­way on Thurs­day. And right on the heels of the move by Sol­id Bio, resTOR­bio raised $85 mil­lion and Ar­mo gar­nered $86 mil­lion, bring­ing the to­tal haul from 4 IPOs in two days to $415 mil­lion, which is sure to in­spire plen­ty more new IPOs in Q1.

Gan­ot — a for­mer JP Mor­gan in­vest­ment banker — has made much of the fact that he’s a Duchenne MD dad out to find a gene ther­a­py that could cure the lethal, rare dis­ease. By in­tro­duc­ing a syn­thet­ic dy­s­trophin trans­gene con­struct, called mi­crody­s­trophin, via a vi­ral vec­tor, the com­pa­ny hopes to prove it can do what Sarep­ta and oth­ers have been grop­ing for with one de­ci­sive in­ter­ven­tion. And he had at­tract­ed some heavy­weight back­ers, in­clud­ing RA Cap­i­tal and their col­leagues at Bain.

Now their new risk fac­tor in­cludes the note that the drug may fail if they can’t get the FDA to lift the hold, which they were in­formed of at least two months ago.

I not­ed at the be­gin­ning of Jan­u­ary that the IPO Gan­ot filed al­so failed to lay out ex­act­ly who owned what in the com­pa­ny, an odd omis­sion for some­one shoot­ing to raise that much cash.

The lat­est up­dates in­clude the fact that Gan­ot owns 4.3% of the com­pa­ny with JPMC Strate­gic In­vest­ments in for 9% and Per­cep­tive at 8.7%.

Gan­ot him­self will earn a base salary of $450,000 this year, with a shot at a $200,000 bonus. And his wife is al­so work­ing for the com­pa­ny, with a salary that’s un­der $200,000.

The stock will trade as $SLDB, with every­one look­ing to see where it heads on Fri­day.

Brian Kaspar. AveXis via Twitter

AveX­is sci­en­tif­ic founder fires back at No­var­tis CEO Vas Narasimhan, 'cat­e­gor­i­cal­ly de­nies any wrong­do­ing'

Brian Kaspar’s head was among the first to roll at Novartis after company execs became aware of the fact that manipulated data had been included in its application for Zolgensma, now the world’s most expensive therapy.

But in his first public response, the scientific founder at AveXis — acquired by Novartis for $8.7 billion — is firing back. And he says that not only was he not involved in any wrongdoing, he’s ready to defend his name as needed.

I reached out to Brian Kaspar after Novartis put out word that he and his brother Allen had been axed in mid-May, two months after the company became aware of the allegations related to manipulated data. His response came back through his attorneys.

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UP­DAT­ED: An em­bold­ened As­traZeneca splurges $95M on a pri­or­i­ty re­view vouch­er. Where do they need the FDA to hus­tle up?

AstraZeneca is in a hurry.

We learned this morning that the pharma giant — not known as a big spender, until recently — forked over $95 million to get its hands on a priority review voucher from Sobi, otherwise known as Swedish Orphan Biovitrum.

That marks another step down on price for a PRV, which allows the holder to slash 4 months off of any FDA review time.

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Martin Shkreli [via Getty]

Pris­on­er #87850-053 does not get to add drug de­vel­op­er to his list of cred­its

Just days after Retrophin shed its last ties to founder Martin Shkreli, the biotech is reporting that the lead drug he co-invented flopped in a pivotal trial. Fosmetpantotenate flunked both the primary and key secondary endpoints in a placebo-controlled trial for a rare disease called pantothenate kinase-associated neurodegeneration, or PKAN.

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We­bi­nar: Re­al World End­points — the brave new world com­ing in build­ing fran­chise ther­a­pies

Several biopharma companies have been working on expanding drug labels through the use of real world endpoints, combing through the data to find evidence of a drug’s efficacy for particular indications. But we’ve just begun. Real World Evidence is becoming an important part of every clinical development plan, in the soup-through-nuts approach used in building franchises.

I’ve recruited a panel of 3 top experts in the field — the first in a series of premium webinars — to look at the practical realities governing what can be done today, and where this is headed over the next few years, at the prodding of the FDA.

ZHEN SU — Merck Serono’s Senior Vice President and Global Head of Oncology
ELLIOTT LEVY — Amgen’s Senior Vice President of Global Development
CHRIS BOSHOFF — Pfizer Oncology’s Chief Development Officer

A premium subscription to Endpoints News is required to attend this webinar. Please upgrade to either an Insider or Enterprise plan for access. Already have Endpoints Premium? Please sign-in below. You can contact our Subscriptions team at help@endpointsnews.com with any issues.

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Am­gen, Al­ler­gan biosim­i­lar of Roche's block­buster Rit­ux­an clears an­oth­er US piv­otal study 

Novartis $NVS may have given up, but Amgen $AMGN and Allergan $AGN are plowing ahead with their knockoff of Roche’s blockbuster biologic Rituxan in the United States.

Their copycat, ABP 798, was found to have a clinically equivalent impact as Rituxan — meeting the main goal of the study involving CD20-positive B-cell non-Hodgkin’s lymphoma patients. This is the second trial supporting the profile of the biosimilar. In January, it came through with positive PK results in patients with rheumatoid arthritis.

BeiGene and Mus­tang nail down spe­cial FDA sta­tus for top drugs; Roche bags added cov­er­age for Hem­li­bra

→ BeiGene $BGNE is getting a boost in its drive to field a rival to Imbruvica. The FDA has offered an accelerated review to zanubrutinib, a BTK inhibitor that has posted positive results for mantle cell lymphoma. The PDUFA date lands on February 27, 2020. The drug scored breakthrough status at the beginning of the year.

→ BeiGene isn’t the only biopharma company to gain special regulatory status today. Mustang Bio $MBIO and St. Jude Children’s Research Hospital announced that MB-107, a lentiviral gene therapy for the treatment of X-linked severe combined immunodeficiency, also known as bubble boy disease, has been granted Regenerative Medicine Advanced Therapy status.

Trump ad­min­is­tra­tion re­vives bid to get drug list prices on TV ads

The Trump administration is not giving up just yet. On Wednesday, the HHS filed an appeal against a judge’s decision in July to overturn a ruling obligating drug manufacturers to disclose the list price of their therapies in television adverts — hours before it was stipulated to go into effect.

In May, the HHS published a final ruling requiring drugmakers to divulge the wholesale acquisition cost— of a 30-day supply of the drug — in tv ads in a bid to enhance price transparency in the United States. The pharmaceutical industry has vehemently opposed the rule, asserting that list prices are not what a typical patient in the United States pays for treatment — that number is typically determined by the type of (or lack thereof) insurance coverage, deductibles and out-of-pocket costs. Although there is truth to that claim, the move was considered symbolic in the Trump administration’s healthcare agenda to hold drugmakers accountable in a climate where skyrocketing drug prices have incensed Americans on both sides of the aisle.

Ver­sant-backed Chi­nook gets a $65M launch round for its dis­cov­ery quest in a resur­gent kid­ney field

Versant is once again stepping off the beaten track in biotech to see if they can blaze a trail of their own in a field that has looked too thorny to many investors for years.

The venture group and their partners at Apple Tree are bringing their latest creation out of stealth mode today. Born in Versant’s Inception Sciences’ Chinook Therapeutics is betting that its preclinical take on kidney disease can get an early lead among the companies starting up in the field.

Sir An­drew Dil­lon, NICE's first — and on­ly — chief ex­ec­u­tive to step down next year

Using a laptop borrowed from his former employer, South London’s St George’s Hospital, Sir Andrew Dillon set about establishing NICE — launched by the then health secretary Frank Dobson — in 1999.  On Thursday, the UK cost-effectiveness watchdog said its first and only chief executive — Dillon — is stepping down in March 2020.

Back in the day, decisions about which drugs and interventions were funded by the National Health Service (NHS) were made at the local level, but this ‘postcode prescribing’ system was fraught with skewed healthcare deployment making the structure unsustainable. A national system was deemed necessary — and NICE was formed to bridge that gap.