J&J's Alex Gorsky re­vers­es course and jumps ship — just as Trump scut­tles top CEO groups

Alex Gorsky

One day af­ter J&J CEO Alex Gorsky pub­licly com­mit­ted to stay­ing on Pres­i­dent Don­ald Trump’s man­u­fac­tur­ing coun­cil, he abrupt­ly re­versed course — just as a sud­den ex­o­dus of ex­ec­u­tives forced the pres­i­dent’s hand and pushed him to dis­band two promi­nent ad­vi­so­ry com­mit­tees.

J&J an­nounced Wednes­day af­ter­noon that the pres­i­dent’s po­si­tion on the dead­ly Char­lottesville con­fronta­tion was un­ac­cept­able, adding that Gorsky was re­sign­ing with im­me­di­ate ef­fect. But as J&J was putting out their state­ment, Trump is­sued his on Twit­ter.

Gorsky had no soon­er told the world on Tues­day that he wasn’t fol­low­ing Ken Fra­zier’s de­ci­sion to re­sign from the man­u­fac­tur­ing coun­cil than Trump called a press con­fer­ence and ve­he­ment­ly in­sist­ed that both sides of the vi­o­lent and dead­ly con­fronta­tion in Char­lottesville, VA — the neo-Nazis, KKK and oth­ers as well as the pro­test­ers who came out to op­pose their demon­stra­tion — were equal­ly to blame.

Equat­ing the two, while al­so not­ing that the right-wing ex­trem­ists had a le­gal per­mit for their demon­stra­tion, led to a po­lit­i­cal earth­quake in Wash­ing­ton DC which is still rum­bling through the capi­tol.

Gorsky wasn’t en­dors­ing the pres­i­dent’s po­si­tion when he an­nounced his plans to stay on the man­u­fac­tur­ing coun­cil. That de­ci­sion to stay on, he said in a pre­pared state­ment, was in­flu­enced by his de­sire to main­tain the com­pa­ny’s eth­i­cal cre­do with­in a se­nior White House cir­cle.

Trump’s de­ci­sion to end the eco­nom­ic ad­vi­so­ry group came on­ly af­ter the CEOs in­volved got to­geth­er and vot­ed to dis­band.

The sud­den up­heaval could well com­pli­cate things for bio­phar­ma at a tick­lish time.

J&J has al­so been lob­by­ing, along with the rest of the in­dus­try, for tax re­form leg­is­la­tion that would low­er rates on repa­tri­at­ing mon­ey from over­seas ac­counts. And no one in a top lead­er­ship po­si­tion at any of the phar­ma com­pa­nies would have en­joyed Trump’s re­cent move to start call­ing out the in­dus­try for high drug prices or their over­seas man­u­fac­tur­ing op­er­a­tions, which resur­faced af­ter Ken Fra­zier got the ball rolling on Mon­day as po­lit­i­cal sup­port for the pres­i­dent crum­bled in ex­ec­u­tive suites from coast-to-coast.

Who can rep­re­sent those in­ter­ests ef­fec­tive­ly in the White House now that some of the most promi­nent ex­ecs in the busi­ness won’t come with­in a mile of the White House?

A fa­vorite in Alex­ion’s C-suite is leav­ing, and some mighty sur­prised an­a­lysts aren’t the least bit hap­py about it

Analysts hate to lose a biotech CFO they’ve come to trust and admire — especially if they’re being blindsided by a surprise exit.

Endpoints News

Keep reading Endpoints with a free subscription

Unlock this story instantly and join 59,900+ biopharma pros reading Endpoints daily — and it's free.

David Grainger [file photo]

'Dis­con­nect the bas­tard­s' — one biotech's plan to break can­cer cell­s' uni­fied de­fens­es

Chemotherapy and radiotherapy are the current gladiators of cancer treatment, but they come with well-known limitations and side-effects. The emergence of immunotherapy — a ferocious new titan in oncologist’s toolbox — takes the brakes off the immune system to kill cancer cells with remarkable success in some cases, but the approach is not always effective. What makes certain forms of cancer so resilient? Scientists may have finally pieced together a tantalizing piece of the puzzle, and a new biotech is banking on a new approach to fill the gap.

Endpoints News

Keep reading Endpoints with a free subscription

Unlock this story instantly and join 59,900+ biopharma pros reading Endpoints daily — and it's free.

While No­var­tis ban­ish­es Zol­gens­ma scan­dal scars — Bio­gen goes on a Spin­raza 'of­fen­sive'

While Novartis painstakingly works to mop up the stench of the data manipulation scandal associated with its expensive gene therapy for spinal muscular atrophy (SMA) Zolgensma— rival Biogen is attempting to expand the use of its SMA therapy, Spinraza. 

The US drugmaker $BIIB secured US approval for Spinraza for use in the often fatal genetic disease in 2016. The approval covered a broad range of patients with infantile-onset (most likely to develop Type 1) SMA. 

Jason Kelly. Mike Blake/Reuters via Adobe

Eye­ing big ther­a­peu­tic push, Gink­go bags $290M to build a cell pro­gram­ming em­pire

Ginkgo Bioworks is on a roll. Days after publicizing a plan to nurture new startups via partnerships with accelerators Y Combinator and Petri, the Boston biotech says it has raised another $290 million for its cell programming platform to reach further and wider.

Endpoints News

Keep reading Endpoints with a free subscription

Unlock this story instantly and join 59,900+ biopharma pros reading Endpoints daily — and it's free.

UP­DAT­ED: Speak­er Nan­cy Pelosi to un­veil bill for fed­er­al­ly ne­go­ti­at­ed drug prices

After months of buzz from both sides of the aisle, Speaker Nancy Pelosi will today introduce her plan to allow the federal government to negotiate prices for 250 prescription drugs, setting up a showdown with a pharmaceutical industry working overtime to prevent it.

The need to limit drug prices is a rare point of agreement between President Trump and Democrats, although the president has yet to comment on the proposal and will likely face pressure to back a more conservative option or no bill at all. Republican Senator Chuck Grassley is reportedly lobbying his fellow party members on a more modest proposal he negotiated with Democratic Senator Ron Wyden in July.

Jeff Kindler's Cen­trex­ion re­news bid to make pub­lic de­but

Jeffrey Kindler’s plan to take his biotech — which is developing a slate of non-opioid painkillers — public, is back on.

The Boston based company, led by former Pfizer $PFE chief Kindler, originally contemplated a $70 million to $80 million IPO last year— but eventually postponed that strategy. On Wednesday, the company revived its bid to make a public debut in a filing with the SEC — although no pricing details were disclosed.

Zachary Hornby. Boundless

'A fourth rev­o­lu­tion in can­cer ther­a­pies': ARCH-backed Bound­less Bio flash­es big check, makes big­ger promis­es in de­but

It was the cellular equivalent of opening your car door and finding an active, roaring engine in the driver seat.

Scientists learned strands of DNA could occasionally appear outside of its traditional home in the nucleus in the 1970s, when they appeared as little, innocuous circles on microscopes; inexplicable but apparently innate. But not until UC San Diego’s Paul Mischel published his first study in Science in 2014 did researchers realize these circles were not only active but potentially overactive and driving some cancer tumors’ superhuman growth.

It’s fi­nal­ly over: Bio­gen, Ei­sai scrap big Alzheimer’s PhI­I­Is af­ter a pre­dictable BACE cat­a­stro­phe rais­es safe­ty fears

Months after analysts and investors called on Biogen and Eisai to scrap their BACE drug for Alzheimer’s and move on in the wake of a string of late-stage failures and rising safety fears, the partners have called it quits. And they said they were dropping the drug — elenbecestat — after the independent monitoring board raised concerns about…safety.

We don’t know exactly what researchers found in this latest catastrophe, but the companies noted in their release that investigators had determined that the drug was flunking the risk/benefit analysis.

Endpoints News

Keep reading Endpoints with a free subscription

Unlock this story instantly and join 59,900+ biopharma pros reading Endpoints daily — and it's free.

Mer­ck helps bankroll new part­ner Themis' game plan to fin­ish the chikun­gun­ya race and be­gin on­colyt­ic virus quest

As Themis gears up for a Phase III trial of its chikungunya vaccine, the Vienna-based biotech has closed out €40 million ($44 million) to foot the clinical and manufacturing bills.

Its heavyweight partners at Merck — which signed a pact around a mysterious “blockbuster indication” last month — jumped into the Series D, led by new investors Farallon Capital and Hadean Ventures. Adjuvant Capital also joined, as did current investors Global Health Investment Fund, aws Gruenderfonds, Omnes Capital, Ventech and Wellington Partners Life Sciences.