Eli Lil­ly slash­es R&D jobs, shut­ters 2 re­search sites as it looks to cut 3,500 staffers world­wide

Eli Lil­ly $LLY is slash­ing 3,500 jobs out of the com­pa­ny as it looks to stream­line op­er­a­tions in the wake of Dave Ricks’ move to the helm at the be­gin­ning of this year.

The de­tails are just start­ing to emerge, but the In­di­anapo­lis-based phar­ma gi­ant is mak­ing some deep cuts in R&D, even as Lil­ly vows to keep the fo­cus on new drug de­vel­op­ment.

Lil­ly is clos­ing an R&D group in Bridge­wa­ter, NJ and shut­ter­ing the Lil­ly Chi­na Re­search and De­vel­op­ment Cen­ter in Shang­hai, mark­ing an­oth­er re­treat in Asia as big phar­ma steps back from some longterm com­mit­ments in the re­gion.

There’s no word on how many jobs are be­ing axed in this par­tic­u­lar move, though the Shang­hai cen­ter em­ployed a staff of 150 — with a large con­cen­tra­tion of sci­en­tists — when it for­mal­ly opened 5 years ago.

Ac­cord­ing to their state­ment, Lil­ly says that the bulk of the cuts — which add up to about 9% of its 42,000 to­tal — should be ac­com­mo­dat­ed through an ear­ly re­tire­ment plan, with lay­offs added from oth­er moves to cut back on fixed ex­pens­es. And the com­pa­ny says it plans to “con­sol­i­date” work in some ser­vice cen­ters, though there are no specifics on how that could play out.

Added Lil­ly:

The com­pa­ny will move pro­duc­tion from its an­i­mal health man­u­fac­tur­ing fa­cil­i­ty in Larch­wood, Iowa, to an ex­ist­ing plant in Fort Dodge, Iowa, and con­tin­ue pro­duc­tiv­i­ty im­prove­ment ef­forts around the world.

These job cuts will save $500 mil­lion in an­nu­al ex­pens­es, Ricks es­ti­mates.

Chi­na has been the fo­cus of sev­er­al re­cent big phar­ma moves to pull back in R&D, end­ing ini­tia­tives launched sev­er­al years ago. No­var­tis has re­treat­ed from Asia, and GSK re­cent­ly ex­e­cut­ed its own re­or­ga­ni­za­tion in Chi­na.

This is al­so not Ricks’ first turn with the ax. Ear­ly this year, just weeks af­ter the com­pa­ny an­nounced plans to lay off 485 staffers that had been in­volved in the failed solanezum­ab pro­gram, the com­pa­ny spread word that it was look­ing for 200 re­searchers to take a “vol­un­tary ex­it.”

“We have an abun­dance of op­por­tu­ni­ties—eight med­i­cines launched in the past four years and the po­ten­tial for two more by the end of next year,” said Ricks in a pre­pared state­ment. “To ful­ly re­al­ize these op­por­tu­ni­ties and in­vest in the next gen­er­a­tion of new med­i­cines, we are tak­ing ac­tion to stream­line our or­ga­ni­za­tion and re­duce our fixed costs around the world.”

Im­age: The Eli Lil­ly and Co cor­po­rate head­quar­ters in In­di­anapo­lis ear­li­er this year AP Pho­to/Dar­ron Cum­mings

BiTE® Plat­form and the Evo­lu­tion To­ward Off-The-Shelf Im­muno-On­col­o­gy Ap­proach­es

Despite rapid advances in the field of immuno-oncology that have transformed the cancer treatment landscape, many cancer patients are still left behind.1,2 Not every person has access to innovative therapies designed specifically to treat his or her disease. Many currently available immuno-oncology-based approaches and chemotherapies have brought long-term benefits to some patients — but many patients still need other therapeutic options.3

Is a pow­er­house Mer­ck team prepar­ing to leap past Roche — and leave Gilead and Bris­tol My­ers be­hind — in the race to TIG­IT dom­i­na­tion?

Roche caused quite a stir at ASCO with its first look at some positive — but not so impressive — data for their combination of Tecentriq with their anti-TIGIT drug tiragolumab. But some analysts believe that Merck is positioned to make a bid — soon — for the lead in the race to a second-wave combo immuno-oncology approach with its own ambitious early-stage program tied to a dominant Keytruda.

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FDA de­lays de­ci­sion on No­var­tis’ po­ten­tial block­buster MS drug, wip­ing away pri­or­i­ty re­view

So much for a speedy review.

In February, Novartis announced that an application for their much-touted multiple sclerosis drug ofatumumab had been accepted and, with the drug company cashing in on one of their priority review vouchers, the agency was due for a decision by June.

But with June less than 48 hours old, Novartis announced the agency has extended their review, pushing back the timeline for approval or rejection to September. The Swiss pharma filed the application in December, meaning their new schedule will be nearly in line with the standard 10-month window period had they not used the priority voucher.

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GSK presents case to ex­pand use of its lu­pus drug in pa­tients with kid­ney dis­ease, but the field is evolv­ing. How long will the mo­nop­oly last?

In 2011, GlaxoSmithKline’s Benlysta became the first biologic to win approval for lupus patients. Nine years on, the British drugmaker has unveiled detailed positive results from a study testing the drug in lupus patients with associated kidney disease — a post-marketing requirement from the initial FDA approval.

Lupus is a drug developer’s nightmare. In the last six decades, there has been just one FDA approval (Benlysta), with the field resembling a graveyard in recent years with a string of failures including UCB and Biogen’s late-stage flop, as well as defeats in Xencor and Sanofi’s programs. One of the main reasons the success has eluded researchers is because lupus, akin to cancer, is not just one disease — it really is a disease of many diseases, noted Al Roy, executive director of Lupus Clinical Investigators Network, an initiative of New York-based Lupus Research Alliance that claims it is the world’s leading private funder of lupus research, in an interview.

Leen Kawas, Athira CEO (Athira)

Can a small biotech suc­cess­ful­ly tack­le an Ever­est climb like Alzheimer’s? Athi­ra has $85M and some in­flu­en­tial back­ers ready to give it a shot

There haven’t been a lot of big venture rounds for biotech companies looking to run a Phase II study in Alzheimer’s.

The field has been a disaster over the past decade. Amyloid didn’t pan out as a target — going down in a litany of Phase III failures — and is now making its last stand at Biogen. Tau is a comer, but when you look around and all you see is destruction, the idea of backing a startup trying to find complex cocktails to swing the course of this devilishly complicated memory-wasting disease would daunt the pluckiest investors.

UP­DAT­ED: Es­ti­mat­ing a US price tag of $5K per course, remde­sivir is set to make bil­lions for Gilead, says key an­a­lyst

Data on remdesivir — the first drug shown to benefit Covid-19 patients in a randomized, controlled trial setting — may be murky, but its maker Gilead could reap billions from the sales of the failed Ebola therapy, according to an estimate by a prominent Wall Street analyst. However, the forecast, which is based on a $5,000-per-course US price tag, triggered the ire of one top drug price expert.

Gilead bol­sters its case for block­buster hope­ful fil­go­tinib as FDA pon­ders its de­ci­sion

Before remdesivir soaked up the spotlight amid the coronavirus crisis, Gilead’s filgotinib was the star experimental drug tapped to rake in billions competing with other JAK inhibitors made by rivals including AbbVie and Eli Lilly.

Now, long term data on the drug — discovered by Gilead’s partners at Galapagos and posted as part of a virtual medical conference — have solidified the durability and safety of filgotinib in patients with rheumatoid arthritis, spanning data from three late-stage trials. An FDA decision on the drug is expected this year.

Covid-19 roundup: Mod­er­na read­ies to en­ter PhI­II in Ju­ly, As­traZeneca not far be­hind; EU ready to ne­go­ti­ate vac­cine ac­cess with $2.7B fund

Moderna may soon add another first to the Covid-19 vaccine race.

In March, the mRNA biotech was the first company to put a Covid-19 vaccine into humans. Next month, they may become the first company to put their vaccine into the large, late-stage trials that are needed to prove whether the vaccine is effective.

In an interview with JAMA editor Howard Bauchner, NIAID chief Anthony Fauci said that a 30,000-person, Phase III trial for Moderna’s vaccine could start in July. The news comes a week after Moderna began a Phase II study that will enroll several hundred people.

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New safe­ty da­ta ex­pose po­ten­tial weak­ness as Pfiz­er's abroc­i­tinib takes on Dupix­ent in eczema

Last September, when Pfizer celebrated positive data from a second Phase III study of abrocitinib, many watchers applauded the efficacy but were still waiting to see whether the JAK1 inhibitor is “safe enough to be a formidable competitor to Dupixent,” the clear leader in the atopic dermatitis field. The full slate of safety data are now out and, according to one analyst, the answer is: probably not.