Five months, $98.5M and a PhII drug from No­var­tis lat­er, Ma­gen­ta Ther­a­peu­tics is floor­ing it


Last No­vem­ber, Ma­gen­ta Ther­a­peu­tics end­ed a year of self-im­posed start­up si­lence with a hefty $48.5 mil­lion Se­ries A and a bur­geon­ing team of in­ves­ti­ga­tors fo­cused on cord blood stem cell ther­a­pies. To­day, just a lit­tle more than 5 months lat­er, it’s adding $50 mil­lion in Se­ries B cash from some mar­quee in­vestors that in­cludes the ven­ture group for­mer­ly known as Google and in-li­cens­ing a mid-stage drug that No­var­tis clear­ly thinks high­ly of for en­hanc­ing cord blood stem cells as a treat­ment.

Oh, and some of that ven­ture cash is from crossover in­vestors, spurring some added think­ing in this fledg­ling biotech about the right tim­ing on a po­ten­tial IPO.

The drug is HSC835, which is now be­ing rechris­tened as MG­TA-456. And the ther­a­py comes with da­ta from some small tri­als, help­ing ad­vance Ma­gen­ta with a full-fledged clin­i­cal pro­gram which fits neat­ly in­to Ma­gen­ta’s R&D strat­e­gy.

No­var­tis has spot­light­ed this drug for its abil­i­ty to im­prove the ther­a­peu­tic pow­er of um­bil­i­cal cord trans­plants, amp­ing up the stem cells need­ed for the en­graft­ment process to cre­ate in­fec­tion-fight­ing cells. And that’s right in Ma­gen­ta’s wheel­house.

It’s a great fit for Ma­gen­ta, CEO Ja­son Gard­ner tells me. The biotech hired in a pair of the ear­ly in­ves­ti­ga­tors on this pro­gram. And when they went to No­var­tis to sound out their in­ter­est man­ag­ing its clin­i­cal fu­ture, de­clar­ing a com­mit­ment to hus­tling it through the clin­ic, the mes­sage res­onat­ed well at the phar­ma gi­ant, which re­tains an un­spec­i­fied in­ter­est in the drug.

Ma­gen­ta is keep­ing those terms to it­self — which is gen­er­al­ly how No­var­tis likes to keep things.

The ex­tra $50 mil­lion that just ar­rived in an ac­cel­er­at­ed Se­ries B will al­so help the biotech ex­pand its fo­cus on can­cer, ge­net­ic dis­eases and au­toim­mu­ni­ty.

GV (for­mer­ly Google Ven­tures) led the round, with par­tic­i­pa­tion from all ex­ist­ing in­vestors, in­clud­ing At­las Ven­ture, Third Rock Ven­tures, Part­ners In­no­va­tion Fund and Ac­cess In­dus­tries. The fi­nanc­ing al­so in­clud­ed Cas­din Cap­i­tal and oth­er crossover in­vestors, as well as Be The Match Bio­Ther­a­pies, a sub­sidiary of Na­tion­al Mar­row Donor Pro­gram. And Be The Match Bio­Ther­a­pies — with its 178 US trans­plant cen­ters — is al­ly­ing with the biotech as it push­es ahead with new clin­i­cal tri­als.

We’re a long way from the 2014 biotech IPO boom, which was the last time you could flip a start­up in­to Nas­daq. But the CEO is hap­py to con­cede that the sub­ject has come up in­side the com­pa­ny.

“We have dis­cussed that op­tion,” says Gard­ner. “We like that op­tion.” But there are lots of op­tions to con­sid­er right now, he adds, in­clud­ing do­ing some non-di­lu­tive deals.

Says Gard­ner: “We like to have all the op­tions avail­able to the com­pa­ny.”

Out-li­cens­ing is not a new strat­e­gy for No­var­tis. Just last March No­var­tis de­cid­ed to spin out a pair of an­ti-ag­ing ther­a­peu­tics to a PureTech start­up, the lat­est in a se­ries of out-li­cens­ing deals for a com­pa­ny that has been care­ful to fo­cus on the core strat­e­gy un­der Chair­man Jo­erg Rein­hardt, who’s keen­ly in­ter­est­ed in main­tain­ing a rel­a­tive­ly con­ser­v­a­tive re­search fo­cus at the phar­ma gi­ant as rev­enue flat­tened and then de­clined.

For Gard­ner, a GSK vet who was sent to Cam­bridge to help scout new ther­a­pies for the phar­ma gi­ant and wound up get­ting sucked in­to At­las’ start­up world, the ac­cel­er­a­tion at Ma­gen­ta feels fine.

By the end of this year, says Gard­ner, he ex­pects the 26-mem­ber team at Ma­gen­ta to grow to about 40. And along the way will come more da­ta and a clear out­line of de­vel­op­ment time­lines that will put this biotech way ahead of most any fledg­ling to pop up in the Boston hub.

2023 Spot­light on the Fu­ture of Drug De­vel­op­ment for Small and Mid-Sized Biotechs

In the context of today’s global economic environment, there is an increasing need to work smarter, faster and leaner across all facets of the life sciences industry.  This is particularly true for small and mid-sized biotech companies, many of which are facing declining valuations and competing for increasingly limited funding to propel their science forward.  It is important to recognize that within this framework, many of these smaller companies already find themselves resource-challenged to design and manage clinical studies themselves because they don’t have large teams or in-house experts in navigating the various aspects of the drug development journey. This can be particularly challenging for the most complex and difficult to treat diseases where no previous pathway exists and patients are urgently awaiting breakthroughs.

Spe­cial re­port 2022: Meet 20 women blaz­ing trails in bio­phar­ma R&D

When you run a special report for a fourth year, it can start feeling a little bit like a ritual. You go through the motions — in our case opening up nominations for top women in biopharma R&D and reviewing more than 500 entries — you make your choices of inclusion and exclusion. You host a ceremony.

But then things happen that remind you why you do it in the first place. Perhaps a Supreme Court rules to overturn the constitutional right to abortion and a group of women biotech leaders makes it clear they strongly dissent; perhaps new data on gender diversity in the industry come out that look all too similar to the old ones, suggesting women are still dramatically underrepresented at the top; perhaps protests and conflicts around the world put in stark terms the struggles that many women still face in earning the most basic recognition.

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Graphic: Shutterstock

Prometheus moves to raise cash hours af­ter PhII da­ta leads to stock surge

After releasing better-than-anticipated data on two mid-stage studies Wednesday morning, Prometheus Biosciences’ CEO said the company would “take some time to assess” its next financing options.

It only needed about seven hours. Wednesday afternoon after the market closed, the biotech announced it would seek $250 million through an equity offering as the company looks to edge out anti-TL1A competitor Pfizer and its new partner Roivant.

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Kristen Hege, Bristol Myers Squibb SVP, early clinical development, oncology/hematology and cell therapy (Illustration: Assistant Editor Kathy Wong for Endpoints News)

Q&A: Bris­tol My­er­s' Kris­ten Hege on cell ther­a­py, can­cer pa­tients and men­tor­ing the next gen­er­a­tion

Kristen Hege leads Bristol Myers Squibb’s early oncology discovery program carrying on from the same work at Celgene, which was acquired by BMS in 2019. She’s known for her early work in CAR-T, having pioneered the first CAR-T cell trial for solid tumors more than 25 years ago.

However, the eminent physician-scientist is more than just a drug developer mastermind. She’s also a practicing physician, mother to two young women, an avid backpacker and intersecting all those interests — a champion of young women and people of color in STEM and life sciences.

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Gossamer Bio CEO Faheem Hasnain at Endpoints' #BIO22 panel (J.T. MacMillan Photography for Endpoints News)

Gos­samer’s Fa­heem Has­nain de­fends a round of pos­i­tive PAH da­ta as a clear win. But can these PhII re­sults stand up to scruti­ny?

Gossamer Bio $GOSS posted a statistically significant improvement for its primary endpoint in the key Phase II TORREY trial for lead drug seralutinib on Tuesday morning. But CEO Faheem Hasnain has some explaining to do on the important secondary of the crucial six-minute walk distance test — which will be the primary endpoint in Phase III — as the data on both endpoints fell short of expectations, missing one analyst’s bar on even modest success.

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Alex Martinez, Intrinsic Medicine CEO

They with­drew their IPO. Then, they broke off their SPAC merg­er. Now what?

If at first an IPO doesn’t succeed, try, try a SPAC. But what happens when that fails too?

Intrinsic Medicine and its blank-check partner Phoenix Biotech Acquisition Corp. called off their reverse merger Tuesday night, citing “current market conditions” as the reason it went kaput. The pair decoupled just weeks after agreeing to combine in late October as investors’ appetite for new IPOs and SPACs has been limited, at best.

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Jay Lichter, Arialys Therapeutics CEO (Avalon Ventures)

Scoop: Aval­on, MPM back new CNS biotech with sci­en­tif­ic chops from Astel­las

A preclinical central nervous system biotech is in the works in La Jolla, CA, and the drug developer has reeled in capital from a syndicate of investors, Endpoints News has learned.

Arialys Therapeutics filed incorporation documents in the Golden State last December and applied its name for trademark protection with the US Patent and Trademark Office the week prior to that. Paperwork with the SEC also outlines plans to offer up equity in exchange for $55 million.

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Piper Trelstad, head of CMC, Bill & Melinda Gates Medical Research Institute

Q&A with Gates leader: Women tak­ing on more roles in phar­ma man­u­fac­tur­ing, but still work to do

More and more women are driving innovation and taking leadership roles in biotech – as evidenced today in the release of Endpoints News’ list of the top 20 women in the R&D world – but those gains are beginning to extend across pharma sectors.

In pharma manufacturing in the US today, around 46% of all roles are occupied by women, according to the US Bureau of Labor Statistics for 2021. And according to a Bloomberg report, women’s roles across manufacturing roles had a massive boost after the start of the pandemic.

Phar­ma rep­u­ta­tion re­tains 'halo' even as pan­dem­ic me­dia cov­er­age re­cedes — sur­vey

The Covid-19 halo effect on the pharma industry is continuing, according to a new global study from Ipsos. The annual survey for the International Federation of Pharmaceutical Manufacturers and Associations (IFPMA) finds considerable goodwill from consumers across measures of trust, cooperation with governments, and advancing research and drug development.

“Despite the pandemic in many countries no longer being the top of mind concern generally – although it does remain the top concern as a health issue – the industry’s reputation has remained positive,” said Ipsos research director Thomas Fife-Schaw.

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