Good­bye, San Fran­cis­co. Stan­ford spin­out heads to Hous­ton af­ter bag­ging a $20M CPRIT grant

Ray Tabib­i­azar

Two years ago an as­so­ciate pro­fes­sor of bio­engi­neer­ing at Stan­ford named Jen­nifer Cochran and co-au­thor Am­a­to Gi­ac­cia came up with a new ap­proach for throw­ing a mon­key wrench in­to the me­chan­ics of metas­ta­sis. Pick­ing up on the role that a pair of Gas6 pro­teins play when they link to two Axl pro­teins — a sub­fam­i­ly of re­cep­tor ty­ro­sine ki­nas­es found on the sur­face of can­cer cells, al­low­ing them to roam from a tu­mor — they de­vel­oped a de­coy pro­tein that harm­less­ly binds to Gas6 and scram­bles the un­teth­er­ing process, ef­fec­tive­ly tak­ing it out of the bi­o­log­ic loop.

The ap­proach worked to blunt metas­ta­sis in mice, and a low-pro­file start­up named Ru­ga Cor­po­ra­tion land­ed the rights — one of a wave of biotech star­tups in the Bay Area.

And this one came with a very promi­nent en­dorse­ment.

“It is a beau­ti­ful piece of bio­chem­istry and has some nu­ances that make it par­tic­u­lar­ly ex­cit­ing,” not­ed Glenn Dra­noff. At the time Dra­noff was a Dana-Far­ber in­ves­ti­ga­tor. Dra­noff joined NI­BR last year to run their im­muno-on­col­o­gy work.

To­day, Ru­ga Corp. is of­fi­cial­ly chang­ing its name to Ar­a­vive, and it’s mak­ing an un­usu­al switch in lo­cales, chang­ing its Bay Area ad­dress in the heart of a top biotech hub for Hous­ton, with a $20 mil­lion in­jec­tion from the Lone Star state’s Can­cer Pre­ven­tion & Re­search In­sti­tute of Texas, bet­ter known as CPRIT.

Gi­ac­cia is now the CSO and co-founder at Ar­a­vive. Ray Tabib­i­azar, a for­mer VC part­ner at Bay City Cap­i­tal, is the CEO. To­geth­er, they’re fo­cused on get­ting their drug in­to the clin­ic for acute myeloid leukemia.

“It’s un­usu­al in that this is the largest amount giv­en (by CPRIT) to one com­pa­ny,” Tabib­i­azar tells me

In the com­ing months the CEO says we should look out for new pub­li­ca­tions spelling out a sec­ond-gen ap­proach to what the Stan­ford team put out in 2014. That’s what is point­ed to the clin­ic in 2017, he adds. And Tabib­i­azar is putting to­geth­er a new fi­nanc­ing round to ful­ly fund the ear­ly stages of de­vel­op­ment work.

As of now, the com­pa­ny has a staff of about 15, adds the CEO, which will grow to a max­i­mum of about 20 for this stage of the game. As for the move to Texas, Tabib­i­azar adds, it makes a lot of sense to get clos­er to in­ves­ti­ga­tors at Bay­lor and MD An­der­son, where they’ve al­ready been do­ing work on this tar­get.

CPRIT has been rais­ing the ante on its biotech bet this month af­ter a four-year bout of on-again, off-again con­tro­ver­sies.

Hous­ton-based Bel­licum Phar­ma­ceu­ti­cals just won a rec­om­men­da­tion for a $16.9 mil­lion CPRIT grant to sup­port its clin­i­cal work for BPX-501 in pe­di­atric AML. And that was part of $93 mil­lion in grants is­sued No­vem­ber 16.

The state set up the $3 bil­lion CPRIT bond ini­tia­tive to sup­port can­cer re­search back in 2007, and it’s been in and out of the head­lines over ac­cu­sa­tions of fa­voritism and bias re­lat­ed to some of the biotechs it’s backed as well as its ties to three promi­nent in­sti­tu­tions: MD An­der­son in Hous­ton, UT South­west­ern in Dal­las, and Bay­lor — which have col­lec­tive­ly snared close to half of the cash hand­ed out so far.

While the state project has played a promi­nent role in aca­d­e­m­ic re­search, the de­vel­op­ment of a biotech hub has ad­vanced in fits and starts, with MD An­der­son step­ping up and help­ing with a se­ries of spin­outs and col­lab­o­ra­tions over the past year.

J&J In­no­va­tions al­so pro­vid­ed a big as­sist of its own, adding a JLabs in­cu­ba­tor in Hous­ton to help fos­ter biotech star­tups. Ar­a­vive can help Texas make the case that it’s al­so bring­ing in new com­pa­nies.

De­vel­op­ment of the Next Gen­er­a­tion NKG2D CAR T-cell Man­u­fac­tur­ing Process

Celyad’s view on developing and delivering a CAR T-cell therapy with multi-tumor specificity combined with cell manufacturing success
Overview
Transitioning potential therapeutic assets from academia into the commercial environment is an exercise that is largely underappreciated by stakeholders, except for drug developers themselves. The promise of preclinical or early clinical results drives enthusiasm, but the pragmatic delivery of a therapy outside of small, local testing is most often a major challenge for drug developers especially, including among other things, the manufacturing challenges that surround the production of just-in-time and personalized autologous cell therapy products.

Paul Hudson, Getty Images

UP­DAT­ED: Sanofi CEO Hud­son lays out new R&D fo­cus — chop­ping di­a­betes, car­dio and slash­ing $2B-plus costs in sur­gi­cal dis­sec­tion

Earlier on Monday, new Sanofi CEO Paul Hudson baited the hook on his upcoming strategy presentation Tuesday with a tell-tale deal to buy Synthorx for $2.5 billion. That fits squarely with hints that he’s pointing the company to a bigger future in oncology, which also squares with a major industry tilt.

In a big reveal later in the day, though, Hudson offered a slate of stunners on his plans to surgically dissect and reassemble the portfoloio, saying that the company is dropping cardio and diabetes research — which covers two of its biggest franchise arenas. Sanofi missed the boat on developing new diabetes drugs, and now it’s pulling out entirely. As part of the pullback, it’s dropping efpeglenatide, their once-weekly GLP-1 injection for diabetes.

“To be out of cardiovascular and diabetes is not easy for a company like ours with an incredibly proud history,” Hudson said on a call with reporters, according to the Wall Street Journal. “As tough a choice as that is, we’re making that choice.”

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Roger Perlmutter, Merck

#ASH19: Here’s why Mer­ck is pay­ing $2.7B to­day to grab Ar­Qule and its next-gen BTK drug, lin­ing up Eli Lil­ly ri­val­ry

Just a few months after making a splash at the European Hematology Association scientific confab with an early snapshot of positive data for their BTK inhibitor ARQ 531, ArQule has won a $2.7 billion buyout deal from Merck.

Merck is scooping up a next-gen BTK drug — which is making a splash at ASH today — from ArQule in an M&A pact set at $20 a share $ARQL. That’s more than twice Friday’s $9.66 close. And Merck R&D chief Roger Perlmutter heralded a deal that nets “multiple clinical-stage oral kinase inhibitors.”

This is the second biotech buyout pact today, marking a brisk tempo of M&A deals in the lead-up to the big JP Morgan gathering in mid-January. It’s no surprise the acquisitions are both for cancer drugs, where Sanofi will try to make its mark while Merck beefs up a stellar oncology franchise. And bolt-ons are all the rage at the major pharma players, which you could also see in Novartis’ recent $9.7 billion MedCo buyout.

ArQule — which comes out on top after their original lead drug foundered in Phase III — highlighted early data on ‘531 at EHA from a group of 6 chronic lymphocytic leukemia patients who got the 65 mg dose. Four of them experienced a partial response — a big advance for a company that failed with earlier attempts.

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Paul Hudson, Sanofi

Paul Hud­son promis­es a bright new fu­ture at Sanofi, kick­ing loose me-too drugs and fo­cus­ing on land­mark ad­vances. But can he de­liv­er?

Paul Hudson was on a mission Tuesday morning as he stood up to address Sanofi’s new R&D and business strategy.

Still fresh into the job, the new CEO set out to convince his audience — including the legions of nervous staffers inevitably devoting much of their day to listening in — that the pharma giant is shedding the layers of bureaucracy that had held them back from making progress in the past, dropping the duds in the pipeline and reprioritizing a more narrow set of experimental drugs that were promised as first-in-class or best-in-class.  The company, he added, is now positioned to “go after other opportunities” that could offer a transformational approach to treating its core diseases.

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Am­gen puts its foot down in shiny new South San Fran­cis­co hub as it re­or­ga­nizes R&D ops

Amgen has signed up to be AbbVie’s neighbor in South San Francisco as it moves into a nine-story R&D facility in the booming biotech hub.

The arrangement gives Amgen 240,000 square feet of space on the Gateway of Pacific Campus, just a few minutes drive from its current digs at Oyster Point. The new hub will open in 2022 and house the big biotech’s Bay Area employees working on cardiometabolic, inflammation and oncology research.

Left top to right: Mark Timney, Alex Denner, Vas Narasimhan. (The Medicines Company, Getty, AP/Endpoints News)

In a play-by-play of the $9.7B Med­Co buy­out, No­var­tis ad­mits it over­paid while of­fer­ing a huge wind­fall to ex­ecs

A month into his tenure at The Medicines Company, new CEO Mark Timney reached out to then-Novartis pharma chief Paul Hudson: Any interest in a partnership?

No, Hudson told him. Not now, at least.

Ten months later, Hudson had left to run Sanofi and Novartis CEO Vas Narasimhan was paying $9.7 billion for the one-drug biotech – the largest in the string of acquisitions Narasimhan has signed since his 2017 appointment.

The deal was the product of an activist investor and his controversial partner working through nearly a year of cat-and-mouse negotiations to secure a deal with Big Pharma’s most expansionist executive. It represented a huge bet in a cardiovascular field that already saw two major busts in recent years and brought massive returns for two of the industry’s most eye-raising names.

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Paul Hudson. Sanofi

New Sanofi CEO Hud­son adds next-gen can­cer drug tech to the R&D quest, buy­ing Syn­thorx for $2.5B

When Paul Hudson lays out his R&D vision for Sanofi tomorrow, he will have a new slate of interleukin therapies and a synthetic biology platform to boast about.

The French pharma giant announced early Monday that it is snagging San Diego biotech Synthorx in a $2.5 billion deal. That marks an affordable bolt-on for Sanofi but a considerable return for Synthorx backers, including Avalon, RA Capital and OrbiMed: At $68 per share, the price represents a 172% premium to Friday’s closing.

Synthorx’s take on alternative IL-2 drugs for both cancer and autoimmune disorders — enabled by a synthetic DNA base pair pioneered by Scripps professor Floyd Romesberg — “fits perfectly” with the kind of innovation that he wants at Sanofi, Hudson said.

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Ab­b­Vie, Scripps ex­pand part­ner­ship, for­ti­fy fo­cus on can­cer drugs

Scripps and AbbVie go way back. Research conducted in the lab of Scripps scientist Richard Lerner led to the discovery of Humira. The antibody, approved by the FDA in 2002 and sold by AbbVie, went on to become the world’s bestselling treatment. In 2018, the drugmaker and the non-profit organization signed a pact focused on developing cancer treatments — and now, the scope of that partnership has broadened to encompass a range of diseases, including immunological and neurological conditions.

South Ko­rea jails 3 Sam­sung ex­ecs for de­stroy­ing ev­i­dence in Bi­o­Log­ics probe

Three Samsung executives in Korea are going to jail.

The convictions came in what prosecutors had billed as “biggest crime of evidence destruction in the history of South Korea”: a case of alleged corporate intrigue that was thrown open when investigators found what was hidden beneath the floor of a Samsung BioLogics plant. Eight employees in total were found guilty of evidence tampering and the three executives were each sentenced to up to two years in prison.