French up­start Step Phar­ma rais­es €8.6M, tak­ing im­muno­sup­pres­sive drugs to the clin­ic

Paris start­up Step Phar­ma has scored €8.6 mil­lion in a deal led by a new in­vestor to help bring its small-mol­e­cule im­muno­sup­pres­sive drugs in­to clin­i­cal tri­als for au­toim­mune dis­ease.

The new cash comes in part from Pon­tif­ax Ven­ture Cap­i­tal, and is added to Step’s first tranche of €5.9 mil­lion led by Ku­ma Part­ners last year, bring­ing the start­up’s to­tal Se­ries A raise to €14.5 mil­lion.

The mon­ey will be used to bring Step’s nov­el class of oral im­munomod­u­laters in­to the clin­ic.

Ge­of­froy de Rib­ains

The com­pa­ny, found­ed in 2014, is pur­su­ing a nov­el tar­get called the cy­ti­dine triphos­phate syn­thase 1 (CTPS1), which was dis­cov­ered at the Imag­ine In­sti­tute in Paris in pa­tients with rare ge­net­ic dis­eases who had a de­fi­cien­cy in this en­zyme in­volved in CTP nu­cleotide pro­duc­tion.

“There is a long, es­tab­lished his­to­ry of us­ing nu­cleotide syn­the­sis in­hibitors to treat au­toim­mune dis­eases, such as rheuma­toid arthri­tis, mul­ti­ple scle­ro­sis or pso­ri­a­sis, but their clin­i­cal use is lim­it­ed due to lack of tis­sue se­lec­tiv­i­ty,” said Ge­of­froy de Rib­ains, CEO and co-founder of Step Phar­ma, in a state­ment. “Tar­get­ing CTPS1 should al­low se­lec­tive mod­u­la­tion of spe­cif­ic im­mune cell pop­u­la­tions, such as T and B cells, with­out af­fect­ing oth­er tis­sues, which should trans­late to bet­ter ef­fi­ca­cy and an im­proved ther­a­peu­tic in­dex.”

Vanes­sa Malier

Step Phar­ma is a spin-off of the Imag­ine In­sti­tute, stem­ming from Alain Fis­ch­er’s re­search on ge­net­ic im­mun­od­e­fi­cien­cies. The com­pa­ny is a joint ven­ture be­tween Imag­ine and Syg­na­ture Dis­cov­ery, a com­pa­ny that does in­te­grat­ed drug dis­cov­ery, and Kur­ma Part­ners, a biotech in­vestor in Eu­rope.

Step has come pret­ty far with a rel­a­tive­ly small amount of cap­i­tal. The com­pa­ny has built a pro­pri­etary as­say plat­form, dis­cov­ered its first se­ries of CTPS1 com­pounds, and showed ini­tial proof of con­cept in vi­vo.

“Step Phar­ma is ex­plor­ing a com­plete­ly new par­a­digm for the treat­ment of au­toim­mune dis­eases,” said Vanes­sa Malier of Kur­ma Part­ners in a state­ment. “The rare com­bi­na­tion of a clin­i­cal­ly val­i­dat­ed tar­get, a nov­el mech­a­nism of ac­tion, and a sig­nif­i­cant un­met med­ical need led us to cre­ate the com­pa­ny with the Imag­ine In­sti­tute and Syg­na­ture Dis­cov­ery, and we are ex­cit­ed to see the pro­gram progress. The abil­i­ty of Step Phar­ma to at­tract Pon­tif­ax con­firms the po­ten­tial of this ap­proach.”

Brent Saunders [Getty Photos]

UP­DAT­ED: Ab­b­Vie seals $63B deal to buy a trou­bled Al­ler­gan — spelling out $1B in R&D cuts

Brent Saunders has found his way out of the current fix he’s in at Allergan $AGN. He’s selling the company to AbbVie for $63 billion in the latest example of the hot M&A market in biopharma.

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Af­ter rais­ing $158M, this up­start's founders have star back­ers and plans to break new ground in gene ther­a­py

Back in 2014, Stephanie Tagliatela opted to take an early exit out of her PhD program after working in Mark Bear’s lab at MIT, where she specialized in the synaptic connections between neuronal cells in the brain. She never finished that PhD, but she and fellow MIT student Kartik Ramamoorthi — who was on the founding team at Voyager — came away with some ideas for a gene therapy startup.

Today, fully 5 years later, she and Ramamoorthi are taking the wraps off of a $104 million mega-round designed to take the cumulative work of their preclinical formative stage for Encoded Therapeutics into human studies. They’ve now raised $158 million since starting out in Illumina’s incubator in the Bay Area, and they believe they are firmly on track to do something unique in gene therapy.

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Novotech CEO Dr. John Moller

Novotech CRO Award­ed Frost & Sul­li­van Best Biotech CRO Asia-Pa­cif­ic 2019

Known in the in­dus­try as the Asia-Pa­cif­ic CRO, Novotech is now lead CRO ser­vices provider for the grow­ing num­ber of in­ter­na­tion­al biotechs se­lect­ing the re­gion for their stud­ies.

Re­flect­ing this Asia-Pa­cif­ic growth, Novotech staff num­bers are up 20% since De­cem­ber 2018 to 600 in-house clin­i­cal re­search peo­ple across a full range of ser­vices, across the re­gion.

Novotech’s ca­pa­bil­i­ties have been rec­og­nized by an­a­lysts like Frost & Sul­li­van, most re­cent­ly with the pres­ti­gious Asia-Pa­cif­ic CRO Biotech of the year award for best prac­tices in clin­i­cal re­search for biotechs for the fifth year. See oth­er awards here.

Sanofi/Re­gen­eron mus­cle ahead of a ri­val No­var­tis/Roche team, win first ap­proval in key rhi­nos­i­nusi­tis field

Re­gen­eron and their part­ners at Sanofi have beat the No­var­tis/Roche team to the punch on an­oth­er key in­di­ca­tion for their block­buster an­ti-in­flam­ma­to­ry drug Dupix­ent. The drug team scored an ac­cel­er­at­ed FDA ap­proval for chron­ic rhi­nos­i­nusi­tis with nasal polyps, mak­ing this the first such NDA for the field.

An­a­lysts have been watch­ing this race for awhile now, as Sanofi/Re­gen­eron won a snap pri­or­i­ty re­view for what is now their third dis­ease in­di­ca­tion for this treat­ment. And they’re not near­ly done, build­ing up hopes for a ma­jor fran­chise.

Image: Chris Varma. Frontier

UP­DAT­ED: Chris Var­ma un­veils MP­M's lat­est start­up — eye­ing 'un­drug­gable' can­cer tar­gets and pow­ered by ma­chine learn­ing, $67M

Two years af­ter MPM Cap­i­tal en­list­ed Chris Var­ma on its busy on­col­o­gy team, the for­mer en­tre­pre­neur-in-res­i­dence is un­veil­ing his first ven­ture project out of his new stomp­ing grounds in the Bay Area: Fron­tier Med­i­cines.

For Var­ma, who’s al­so co-found­ed Blue­print Med­i­cines and built com­pa­nies at Third Rock and Flag­ship, this marks an­oth­er op­por­tu­ni­ty to ap­ply some cut­ting-edge sci­ence to “sev­er­al of the most im­por­tant and dif­fi­cult tar­gets in can­cer” — tar­gets that oth­ers have tried to tack­le with more clas­si­cal meth­ods and failed. The launch round comes in at $67 mil­lion, which should go some way in scaf­fold­ing a pre­clin­i­cal pipeline and push one or more as­sets in­to the clin­ic three years from now, he tells me.

Richard Gonzalez testifying in front of Senate Finance Committee, February 2019 [AP Images]

Ab­b­Vie's $63B buy­out spot­lights the re­turn of ma­jor M&A deals — de­spite the back­lash

Big time M&A is back. But for how long?

Over the past 18 months we’ve now seen three major buyouts announced: Takeda/Shire; Bristol-Myers/Celgene and now AbbVie/Allergan. And with this latest deal it’s increasingly clear that the sharp fall from grace suffered by high-profile players which have seen their share prices blasted has created an opening for the growth players in big pharma to up their game — in sharp contrast to the popular bolt-on deals that have been driving the growth strategy at Novartis, Merck, Roche and others.

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Two biotech uni­corns swell pro­posed IPOs, eye­ing a $600M-plus wind­fall

We’ve been wait­ing for the ar­rival of Bridge­Bio’s IPO to top off the wave of new biotech of­fer­ings sweep­ing through Nas­daq at the end of H1. And now we learn that it’s been sub­stan­tial­ly up­sized.

Ini­tial­ly pen­ciled in at a uni­corn-sized $225 mil­lion, the KKR-backed biotech has spiked that to the neigh­bor­hood of $300 mil­lion, look­ing to sell 20 mil­lion shares at $14 to $16 each. That’s an added 5 mil­lion shares, re­ports Re­nais­sance Cap­i­tal, which fig­ures the pro­posed mar­ket val­u­a­tion for Neil Ku­mar’s com­pa­ny at $1.8 bil­lion.

No­var­tis holds back the copy­cat brigade's at­tack on its top drug fran­chise — for now

A fed­er­al judge has put a gener­ic chal­lenge to No­var­tis’ block­buster mul­ti­ple scle­ro­sis drug Gilenya on hold while a patent fight plays out in court.

Judge Leonard P. Stark is­sued a tem­po­rary in­junc­tion ear­li­er this week, forc­ing My­lan, Dr. Red­dy’s Lab­o­ra­to­ries and Au­robindo Phar­ma to shelve their launch plans to al­low the patent fight to pro­ceed. He ruled that al­low­ing the gener­ics in­to the mar­ket now would per­ma­nent­ly slash the price for No­var­tis, even if it pre­vails. 

Top an­a­lyst finds a sil­ver lin­ing in Ab­b­Vie’s $63B Al­ler­gan buy­out — but there’s a catch

Af­ter get­ting beat up on all sides from mar­ket ob­servers who don’t much care for the lat­est mega-deal to ar­rive in bio­phar­ma, at least one promi­nent an­a­lyst now is start­ing to like what he sees in the num­bers for Ab­b­Vie/Al­ler­gan.

But it’s go­ing to take some en­cour­age­ment if Ab­b­Vie ex­ecs want it to last.

Ab­b­Vie’s mar­ket cap de­clined $20 bil­lion on Tues­day as the stock took a 17% hit dur­ing the day. And SVB Leerink’s Ge­of­frey Porges can see a dis­tinct out­line of an up­side af­ter re­view­ing the fun­da­men­tals of the deal.

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