GSK R&D chief Val­lance is out as its new CEO changes di­rec­tion un­der a new crew

Im­age: Patrick Val­lance.

The R&D chief at Glax­o­SmithK­line is jump­ing ship, just as new CEO Em­ma Walm­s­ley push­es through the fi­nal changes of a top-to-bot­tom shake­up aimed at spurring a more com­mer­cial­ly ef­fec­tive strat­e­gy in drug de­vel­op­ment.

Patrick Val­lance is turn­ing in his com­pa­ny cre­den­tials in ex­change for a new job in gov­ern­ment, ac­cord­ing to sev­er­al re­ports out of Lon­don, with plans to take a job as a se­nior ad­vis­er to the gov­ern­ment on sci­ence, though the Fi­nan­cial Times says that the cur­rent oc­cu­pant of that job isn’t slat­ed to leave for some months.

Both the Fi­nan­cial Times and Reuters cit­ed sources say­ing that a change is in the off­ing, with the FT not­ing that Val­lance had been feel­ing un­der pres­sure from the new regime as in­ter­nal crit­i­cism of their track record mount­ed over the course of the year. A com­pa­ny spokesper­son de­clined com­ment when I queried GSK ear­ly Fri­day.

While it’s not im­me­di­ate­ly clear whether Val­lance had some help in de­cid­ing to leave GSK, it’s un­like­ly that Walm­s­ley made an ef­fort to re­tain him. At the end of his 6-year tenure, the UK phar­ma gi­ant has found lit­tle of block­buster im­por­tance to re­port on in the late-stage phar­ma pipeline. In­no­va­tion has been large­ly lim­it­ed to vac­cines and HIV, where they are the ma­jor­i­ty own­er of Vi­iV, with some in­cre­men­tal gains on the res­pi­ra­to­ry side.

GSK, mean­while, has the 11th largest R&D bud­get in the in­dus­try at $4.5 bil­lion, mak­ing it a top 15 play­er as the ma­jors ag­gres­sive­ly pur­sued big­ger pipelines. R&D ac­count­ed for 16% of its rev­enue last year, a re­spectable amount. But with gener­ic Ad­vair pres­sures set to grow, pa­tience has been run­ning out.

Not long af­ter tak­ing the helm af­ter An­drew Wit­ty’s de­par­ture from the top job, Walm­s­ley moved to spur a change, bring­ing in As­traZeneca’s Luke Miels at phar­ma to help de­vise a bet­ter drug strat­e­gy, woo­ing Dana-Far­ber chief Lau­rie Glim­ch­er over to the board from Bris­tol-My­ers Squibb and sug­gest­ing that now might be a great time to dive deep­er in­to on­col­o­gy.

Kick­ing loose some poor R&D prospects while re­treat­ing from Chi­na, GSK’s R&D group al­so re­cent­ly com­plet­ed pick­ing up an op­tion from Adap­ti­m­mune. Just yes­ter­day the com­pa­ny tout­ed the FDA’s de­ci­sion to lend its break­through drug des­ig­na­tion to an ear­ly-stage can­cer ther­a­py guid­ed by SVP Ax­el Hoos, which helped clar­i­fy the grow­ing in­flu­ence of can­cer R&D, where fel­low British phar­ma gi­ant As­traZeneca has been mak­ing sig­nif­i­cant ad­vances.

The ques­tion now is whether GSK will reach in­to its fad­ed R&D struc­ture in search of a new R&D star, or reach out to find an ex­pert look­ing to wran­gle one of the biggest re­search groups on the plan­et. Both Val­lance and his pre­de­ces­sor in the phar­ma group, Mon­cef Slaoui, were long­time em­ploy­ees at the com­pa­ny.

The top 10 block­buster drugs in the late-stage pipeline — Eval­u­ate adds 6 new ther­a­pies to heavy-hit­ter list

Vertex comes in for a substantial amount of criticism for its no-holds-barred tactical approach toward wresting the price it wants for its commercial drugs in Europe. But the flip side of that coin is a highly admired R&D and commercial operation that regularly wins kudos from analysts for their ability to engineer greater cash flow from the breakthrough drugs they create.

Both aspects needed for success in this business are on display in the program backing Vertex’s triple for cystic fibrosis. VX-659/VX-445 + Tezacaftor + Ivacaftor — it’s been whittled down to 445 now — was singled out by Evaluate Pharma as the late-stage therapy most likely to win the crown for drug sales in 5 years, with a projected peak revenue forecast of $4.3 billion.

The latest annual list, which you can see here in their latest world preview, includes a roster of some of the most closely watched development programs in biopharma. And Evaluate has added 6 must-watch experimental drugs to the top 10 as drugs fail or go on to a first approval. With apologies to the list maker, I revamped this to rank the top 10 by projected 2024 sales, instead of Evaluate's net present value rankings.

It's how we roll at Endpoints News.

Here is a quick summary of the rest of the top 10:

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How small- to mid-sized biotechs can adopt pa­tient cen­tric­i­ty in their on­col­o­gy tri­als

By Lucy Clos­sick Thom­son, Se­nior Di­rec­tor of On­col­o­gy Pro­ject Man­age­ment, Icon

Clin­i­cal tri­als in on­col­o­gy can be cost­ly and chal­leng­ing to man­age. One fac­tor that could re­duce costs and re­duce bar­ri­ers is har­ness­ing the pa­tient voice in tri­al de­sign to help ac­cel­er­ate pa­tient en­roll­ment. Now is the time to adopt pa­tient-cen­tric strate­gies that not on­ly fo­cus on pa­tient needs, but al­so can main­tain cost ef­fi­cien­cy.

John Reed at JPM 2019. Jeff Rumans for Endpoints News

Sanofi's John Reed con­tin­ues to re­or­ga­nize R&D, cut­ting 466 jobs while boost­ing can­cer, gene ther­a­py re­search

The R&D reorganization inside Sanofi is continuing, more than a year after the pharma giant brought in John Reed to head the research arm of the Paris-based company.
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UP­DAT­ED: Chica­go biotech ar­gues blue­bird, Third Rock 'killed' its ri­val, pi­o­neer­ing tha­lassemia gene ther­a­py in law­suit

Blue­bird bio $BLUE chief Nick Leschly court­ed con­tro­ver­sy last week when he re­vealed the com­pa­ny’s be­ta tha­lassemia treat­ment will car­ry a jaw-drop­ping $1.8 mil­lion price tag over a 5-year pe­ri­od in Eu­rope — mak­ing it the plan­et’s sec­ond most ex­pen­sive ther­a­py be­hind No­var­tis’ $NVS fresh­ly ap­proved spinal mus­cu­lar at­ro­phy ther­a­py, Zol­gens­ma, at $2.1 mil­lion. A Chica­go biotech, mean­while, has been fum­ing at the side­lines. In a law­suit filed ear­li­er this month, Er­rant Gene Ther­a­peu­tics al­leged that blue­bird and ven­ture cap­i­tal group Third Rock un­law­ful­ly prised a vi­ral vec­tor, de­vel­oped in part­ner­ship with the Memo­r­i­al Sloan Ket­ter­ing Can­cer Cen­ter (MSK), from its grasp, and thwart­ed the de­vel­op­ment of its sem­i­nal gene ther­a­py.

Neil Woodford. Woodford Investment Management via YouTube

Wood­ford braces po­lit­i­cal storm as UK fi­nan­cial reg­u­la­tors scru­ti­nize fund sus­pen­sion

The shock of Neil Wood­ford’s de­ci­sion to block with­drawals for his flag­ship fund is still rip­pling through the rest of his port­fo­lio — and be­yond. Un­der po­lit­i­cal pres­sure, UK fi­nan­cial reg­u­la­tors are now tak­ing a hard look while in­vestors con­tin­ue to flee.

In a re­sponse let­ter to an MP, the Fi­nan­cial Con­duct Au­thor­i­ty re­vealed that it’s opened an in­ves­ti­ga­tion in­to the sus­pen­sion fol­low­ing months of en­gage­ment with Link Fund So­lu­tions, which tech­ni­cal­ly del­e­gat­ed Wood­ford’s firm to man­age its funds.

John Chiminski, Catalent CEO - File Photo

'It's a growth play': Catal­ent ac­quires Bris­tol-My­er­s' Eu­ro­pean launch pad, ex­pand­ing glob­al CD­MO ops

Catalent is staying on the growth track.

Just two months after committing $1.2 billion to pick up Paragon and take a deep dive into the sizzling hot gene therapy manufacturing sector, the CDMO is bouncing right back with a deal to buy out Bristol-Myers’ central launchpad for new therapies in Europe, acquiring a complex in Anagni, Italy, southwest of Rome, that will significantly expand its capacity on the continent.

There are no terms being offered, but this is no small deal. The Anagni campus employs some 700 staffers, and Catalent is planning to go right in — once the deal closes late this year — with a blueprint to build up the operations further as they expand on oral solid, biologics, and sterile product manufacturing and packaging.

This is an uncommon deal, Catalent CEO John Chiminski tells me. But it offers a shortcut for rapid growth that cuts years out of developing a green fields project. That’s time Catalent doesn’t have as the industry undergoes unprecedented expansion around the world.

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Arc­turus ex­pands col­lab­o­ra­tion, adding $30M cash; Ku­ra shoots for $100M raise

→  Rare dis­ease play­er Ul­tragenyx $RARE is ex­pand­ing its al­liance with Arc­turus $ARCT, pay­ing $24 mil­lion for eq­ui­ty and an­oth­er $6 mil­lion in an up­front as the two part­ners ex­pand their col­lab­o­ra­tion to in­clude up to 12 tar­gets. “This ex­pand­ed col­lab­o­ra­tion fur­ther so­lid­i­fies our mR­NA plat­form by adding ad­di­tion­al tar­gets and ex­pand­ing our abil­i­ty to po­ten­tial­ly treat more dis­eases,” said Emil Kakkis, the CEO at Ul­tragenyx. “We are pleased with the progress of our on­go­ing col­lab­o­ra­tion. Our most ad­vanced mR­NA pro­gram, UX053 for the treat­ment of Glyco­gen Stor­age Dis­ease Type III, is ex­pect­ed to move in­to the clin­ic next year, and we look for­ward to fur­ther build­ing up­on the ini­tial suc­cess of this part­ner­ship.”

Gilead baits new al­liance with $45M up­front, div­ing in­to the busy pro­tein degra­da­tion field

Gilead is jump­ing on board the pro­tein degra­da­tion band­wag­on. And they’re turn­ing to a low-pro­file Third Rock start­up for the ex­per­tise. But if you were look­ing for a trans­for­ma­tion­al deal to kick up fresh en­thu­si­asm for Gilead, you’ll have to re­main pa­tient.

This one will have a long way to go be­fore they get in­to the clin­ic.

The big biotech said Wednes­day morn­ing that it is pay­ing $45 mil­lion up­front and re­serv­ing a whop­ping $2.3 bil­lion in biotech bucks if San Fran­cis­co-based Nurix can point the way to new can­cer ther­a­pies, as well as drugs for oth­er, un­spec­i­fied dis­eases.

A new num­ber 1 drug? Keytru­da tapped to top the 10 biggest block­busters on the world stage by 2024

Analysts may be fretting about Keytruda’s longterm prospects as a host of rival therapies elbow their way to the market. But the folks at Evaluate Pharma are confident that last year’s $7 billion earner is headed for glory, tapping it to beat out the current #1 therapy Humira as AbbVie watches that franchise swoon over the next 5 years.

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