Neil Woodford via YouTube

In­vestors trapped for an­oth­er 28 days as sus­pen­sion of Wood­ford flag­ship fund drags on

So when will Neil Wood­ford’s main fund be re­opened? Not in the com­ing 28 days, in­vestors learned af­ter the mar­kets closed in the UK Mon­day.

Link Fund So­lu­tions, the of­fi­cial hold­er of the Wood­ford Eq­ui­ty In­come Fund, has de­cid­ed to con­tin­ue block­ing re­demp­tions, sales or oth­er trans­ac­tions of the fund. It’s hard­ly a sur­pris­ing out­come, but one that is like­ly to fur­ther frus­trate in­vestors, many of whom said they were blind­sided by the ban.

The ra­tio­nale, Link in­sists, has al­ways been to pro­tect in­vestors’ in­ter­ests by al­low­ing Wood­ford’s team the time to shift away from pri­vate com­pa­nies to­ward more liq­uid stocks. In the first 28 days of sus­pen­sion, they have re­port­ed­ly sold at least £300 mil­lion ($379 mil­lion) worth of as­sets, con­vert­ed in­to cash or oth­er stock hold­ings.

“When the fund re­opens, you will see a much more liq­uid port­fo­lio, but one that re­flects the same in­vest­ment strat­e­gy. The port­fo­lio will con­tin­ue to be fo­cused on un­der­val­ued com­pa­nies, but the ma­jor­i­ty of them will be FTSE 100 and FTSE 250 in­dex con­stituents,” Link wrote in a state­ment, adding that it will ap­point a part­ner to as­sist with the process.

Wood­ford added in a video that he sees many com­pa­nies in this group that are “pro­found­ly un­der­val­ued” and look like at­trac­tive can­di­dates to re­plen­ish the port­fo­lio af­ter sell­ing off some fa­vorites. Over the long course of fi­nan­cial mar­ket his­to­ry, he said, val­u­a­tion wins out, align­ing share prices with re­al­i­ty soon­er or lat­er.

As long as in­vestors still trust his as­sess­ment of re­al­i­ty.

Fi­nal­ly, the be­lea­guered stock­pick­er pledged to re­turn to full trans­paren­cy once the saga is over, even though the pol­i­cy has been with­drawn for the time be­ing:

When we set Wood­ford up 5 years ago we felt our in­vestors would val­ue the in­for­ma­tion that we were able to pro­vide. I think what we un­der­es­ti­mat­ed is how our full port­fo­lio trans­paren­cy would be­come more dam­ag­ing in a pe­ri­od of un­der­per­for­mance. In essence, the trans­paren­cy be­came more dam­ag­ing than the val­ue it cre­at­ed for our in­vestors.

Sus­pend­ing the Eq­ui­ty In­come Fund, of course, still doesn’t stop Wood­ford’s oth­er funds from be­com­ing col­lat­er­al dam­age. And it would like­ly add fu­el to the po­lit­i­cal fire that’s prompt­ed fi­nan­cial reg­u­la­tors to look in­to the halt in the first place.

The con­tro­ver­sy will have an­oth­er 28 days to brew be­fore Link re­views the sit­u­a­tion again.

Vlad Coric (Biohaven)

In an­oth­er dis­ap­point­ment for in­vestors, FDA slaps down Bio­haven’s re­vised ver­sion of an old ALS drug

Biohaven is at risk of making a habit of disappointing its investors. 

Late Friday the biotech $BHVN reported that the FDA had rejected its application for riluzole, an old drug that they had made over into a sublingual formulation that dissolves under the tongue. According to Biohaven, the FDA had a problem with the active ingredient used in a bioequivalence study back in 2017, which they got from the Canadian drugmaker Apotex.

Francesco De Rubertis

Medicxi is rolling out its biggest fund ever to back Eu­rope's top 'sci­en­tists with strange ideas'

Francesco De Rubertis built Medicxi to be the kind of biotech venture player he would have liked to have known back when he was a full time scientist.

“When I was a scientist 20 years ago I would have loved Medicxi,’ the co-founder tells me. It’s the kind of place run by and for investigators, what the Medicxi partner calls “scientists with strange ideas — a platform for the drug hunter and scientific entrepreneur. That’s what I wanted when I was a scientist.”

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Af­ter a decade, Vi­iV CSO John Pot­tage says it's time to step down — and he's hand­ing the job to long­time col­league Kim Smith

ViiV Healthcare has always been something unique in the global drug industry.

Owned by GlaxoSmithKline and Pfizer — with GSK in the lead as majority owner — it was created 10 years ago in a time of deep turmoil for the field as something independent of the pharma giants, but with access to lots of infrastructural support on demand. While R&D at the mother ship inside GSK was souring, a razor-focused ViiV provided a rare bright spot, challenging Gilead on a lucrative front in delivering new combinations that require fewer therapies with a more easily tolerated regimen.

They kept a massive number of people alive who would otherwise have been facing a death sentence. And they made money.

And throughout, John Pottage has been the chief scientific and chief medical officer.

Until now.

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Chas­ing Roche's ag­ing block­buster fran­chise, Am­gen/Al­ler­gan roll out Avastin, Her­ceptin knock­offs at dis­count

Let the long battle for biosimilars in the cancer space begin.

Amgen has launched its Avastin and Herceptin copycats — licensed from the predecessors of Allergan — almost two years after the FDA had stamped its approval on Mvasi (bevacizumab-awwb) and three months after the Kanjinti OK (trastuzumab-anns). While the biotech had been fielding biosimilars in Europe, this marks their first foray in the US — and the first oncology biosimilars in the country.

Seer adds ex-FDA chief Mark Mc­Clel­lan to the board; Her­cules Cap­i­tal makes it of­fi­cial for new CEO Scott Bluestein

→ On the same day it announced a $17.5 million Series C, life sciences and health data company Seer unveiled that it had lured former FDA commissioner and ex-CMS administrator Mark McClellan on to its board. “Mark’s deep understanding of the health care ecosystem and visionary insights on policy reform will be crucial in informing our thinking as we work to bring our liquid biopsy and life sciences products to market,” said Seer chief and founder Omid Farokhzad in a statement.

Daniel O'Day

No­var­tis hands off 3 pre­clin­i­cal pro­grams to the an­tivi­ral R&D mas­ters at Gilead

Gilead CEO Daniel O’Day’s new task hunting up a CSO for the company isn’t stopping the industry’s dominant antiviral player from doing pipeline deals.

The big biotech today snapped up 3 preclinical antiviral programs from pharma giant Novartis, with drugs promising to treat human rhinovirus, influenza and herpes viruses. We don’t know what the upfront is, but the back end has $291 million in milestones baked in.

Vas Narasimhan, AP Images

On a hot streak, No­var­tis ex­ecs run the odds on their two most im­por­tant PhI­II read­outs. Which is 0.01% more like­ly to suc­ceed?

Novartis CEO Vas Narasimhan is living in the sweet spot right now.

The numbers are running a bit better than expected, the pipeline — which he assembled as development chief — is performing and the stock popped more than 4% on Thursday as the executive team ran through their assessment of Q2 performance.

Year-to-date the stock is up 28%, so the investors will be beaming. Anyone looking for chinks in their armor — and there are plenty giving it a shot — right now focus on payer acceptance of their $2.1 million gene therapy Zolgensma, where it’s early days. And CAR-T continues to underperform, but Novartis doesn’t appear to be suffering from it.

So what could go wrong?

Actually, not much. But Tim Anderson at Wolfe pressed Narasimhan and his development chief John Tsai to pick which of two looming Phase III readouts with blockbuster implication had the better odds of success.

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H1 analy­sis: The high-stakes ta­ble in the biotech deals casi­no is pay­ing out some record-set­ting win­nings

For years the big trend among dealmakers at the major players has been centered on ratcheting down upfront payments in favor of bigger milestones. Better known as biobucks for some. But with the top 15 companies competing for the kind of “transformative” pacts that can whip up some excitement on Wall Street, with some big biotechs like Regeneron now weighing in as well, cash is king at the high stakes table.

We asked Chris Dokomajilar, the head of DealForma, to crunch the numbers for us, looking over the top 20 deals for the past decade and breaking it all down into the top alliances already created in 2019. Gilead has clearly tipped the scales in terms of the coin of the bio-realm, with its record-setting $5 billion upfront to tie up to Galapagos’ entire pipeline.

Dokomajilar notes:

We’re going to need a ‘three comma club’ for the deals with over $1 billion in total upfront cash and equity. The $100 million-plus club is getting crowded at 164 deals in the last decade with new deals being added towards the top of the chart. 2019 already has 14 deals with at least $100 million in upfront cash and equity for a total year-to-date of over $9 billion. That beats last year’s $8 billion and sets a record.

Add upfronts and equity payments and you get $11.5 billion for the year, just shy of last year’s record-setting $11.8 billion.

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Part club, part guide, part land­lord: Arie Bellde­grun is blue­print­ing a string of be­spoke biotech com­plex­es in glob­al boom­towns — start­ing with Boston

The biotech industry is getting a landlord, unlike anything it’s ever known before.

Inspired by his recent experiences scrounging for space in Boston and the Bay Area, master biotech builder, investor, and global dealmaker Arie Belldegrun has organized a new venture to build a new, 250,000 square foot biopharma building in Boston’s Seaport district — home to Vertex and a number of up-and-coming biotech players.

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