Low sales, high cost: Melin­ta slash­es HQ re­search staff as it strug­gles to grow an­tibi­otics rev­enue

Look to Melin­ta Ther­a­peu­tics for the lat­est sign of eco­nom­ic trou­ble in the an­tibi­otics field.

Ex­act­ly a year af­ter the Con­necti­cut drug­mak­er ex­e­cut­ed a $270 mil­lion pact to buy out The Med­i­cines Co’s in­fec­tious dis­ease group — one in a string of pipeline ex­pan­sion deals — the com­pa­ny is re­port­ed­ly clos­ing down its head­quar­ters and lay­ing off 22 out of 25 staff and spin­ning out re­search projects, the lo­cal New Haven Biz re­port­ed last week. The bulk of the cuts were in R&D.

John John­son

While Melin­ta con­firmed the lay­offs to the pa­per, it de­clined to ver­i­fy the clos­ing date of No­vem­ber 30 cit­ed by the news site’s sources (say­ing “no fi­nal plans to shut­ter the New Haven lo­ca­tion had been made”) or elab­o­rate on the job cuts hap­pen­ing at its North Car­oli­na, New Jer­sey and Illi­nois of­fices.

Over the past year, Melin­ta’s share price $ML­NT has plunged 85%.

The com­pa­ny has not re­turned our re­quest for fur­ther in­for­ma­tion.

“In the face of an ex­treme­ly chal­leng­ing time for the an­tibi­otics in­dus­try, Melin­ta has made the dif­fi­cult de­ci­sion to sig­nif­i­cant­ly re­duce our in­vest­ment in dis­cov­ery re­search and are cur­rent­ly look­ing for strate­gic part­ners to take on these ac­tiv­i­ties, lo­cat­ed at our New Haven fa­cil­i­ty,” an emailed state­ment to New Haven Biz read.

Pe­ter Mil­li­gan

Melin­ta hint­ed at the re­or­ga­ni­za­tion in its Q3 call, in which in­ter­im CEO John John­son plain­ly ad­mit­ted to low­er-than-ex­pect­ed sales and high-than-ex­pect­ed costs. With the help of new­ly hired CFO Pe­ter Mil­li­gan, John­son is hop­ing to shed $50 mil­lion in op­er­at­ing ex­pens­es next year by look­ing to ex­ter­nal sources for in­no­va­tion and “re­fo­cus­ing the com­pa­ny on prod­uct launch­es.”

It’s yet an­oth­er alarm­ing con­fir­ma­tion of the com­mon wor­ry that an­tibi­ot­ic de­vel­op­ers face slim com­mer­cial prospects even af­ter they have over­come the of­ten lengthy reg­u­la­to­ry jour­ney. Big Phar­ma has large­ly bowed out of ba­sic re­search in the field, as ex­em­pli­fied in No­var­tis’ high-pro­file ex­it in re­cent months, though Genen­tech claimed a no­table ex­cep­tion with a pre­clin­i­cal can­di­date that its re­searchers say can rep­re­sent a new class for drug-re­sis­tant gram-neg­a­tive bac­te­ria.

In Melin­ta’s case, it took 17 years and sev­er­al CEOs to get an OK for Baxdela, which was launched this Jan­u­ary with “in­creas­ing mo­men­tum,” John­son said.

The ex­ecs, though, have toned down an­tic­i­pat­ed sales of Or­ba­tiv and Minocin — two of the three prod­ucts that came with the Med­i­cines Co deal — by a few mil­lion.

Ac­cord­ing to its web­site, Melin­ta was ap­ply­ing its dis­cov­ery plat­form on pro­grams in ac­ne and bac­te­r­i­al vagi­nosis as well as next-gen an­tibi­otics to com­bat “su­per­bugs” — a press­ing con­cern that the OECD warns will kill mil­lions glob­al­ly by 2050. Those pro­grams’ fate re­mains to be seen.

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.

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It's not per­fect, but it's a good start: FDA pan­elists large­ly en­dorse Aim­mune's peanut al­ler­gy ther­a­py

Two days after a fairly benign review from FDA staff, an independent panel of experts largely endorsed the efficacy and safety of Aimmune’s peanut allergy therapy, laying the groundwork for approval with a risk evaluation and mitigation strategy (REMS).

Traditionally, peanut allergies are managed by avoidance, but the threat of accidental exposure cannot be nullified. Some allergists have devised a way to dose patients off-label with peanut protein derived from supermarket products to wean them off their allergies. But the idea behind Aimmune’s product was to standardize the peanut protein, and track the process of desensitization — so when accidental exposure in the real world invariably occurs, patients are less likely to experience a life-threatening allergic reaction.

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Lisa M. DeAngelis, MSKCC

MSK picks brain can­cer ex­pert Lisa DeAn­ge­lis as its next CMO — fol­low­ing José Basel­ga’s con­tro­ver­sial ex­it

It’s official. Memorial Sloan Kettering has picked a brain cancer expert as its new physician-in-chief and CMO, replacing José Baselga, who left under a cloud after being singled out by The New York Times and ProPublica for failing to properly air his lucrative industry ties.

His replacement, who now will be in charge of MSK’s cutting-edge research work as well as the cancer care delivered by hundreds of practitioners, is Lisa M. DeAngelis. DeAngelis had been chair of the neurology department and co-founder of MSK’s brain tumor center and was moved in to the acting CMO role in the wake of Baselga’s departure.

Penn team adapts CAR-T tech, reengi­neer­ing mouse cells to treat car­diac fi­bro­sis

After establishing itself as one of the pioneer research centers in the world for CAR-T cancer therapies, creating new attack vehicles to eradicate cancer cells, a team at Penn Medicine has begun the tricky transition of using the basic technology for heart repair work.

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Tal Zaks. Moderna

The mR­NA uni­corn Mod­er­na has more ear­ly-stage hu­man da­ta it wants to show off — reach­ing new peaks in prov­ing the po­ten­tial

The whole messenger RNA field has attracted billions of dollars in public and private investor cash gambled on the prospect of getting in on the ground floor. And this morning Boston-based Moderna, one of the leaders in the field, wants to show off a few more of the cards it has to play to prove to you that they’re really in the game.

The whole hand, of course, has yet to be dealt. And there’s no telling who gets to walk with a share of the pot. But any cards on display at this point — especially after being accused of keeping its deck under lock and key — will attract plenty of attention from some very wary, and wired, observers.

“In terms of the complexity and unmet need,” says Tal Zaks, the chief medical officer, “this is peak for what we’ve accomplished.”

Moderna has two Phase I studies it wants to talk about now.

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Sanofi takes a $260M hit to ex­tri­cate it­self from a dis­as­trous al­liance with Lex­i­con

Sanofi spent $300 million in cash to get into a $1.7 billion alliance with Lexicon on their SGLT1/2 diabetes drug sotagliflozin. And now that the drug has been spurned by the FDA after burning through a program that provided mixed late-stage data and a late shot at a last-place finish, the French pharma giant is forking over another $260 million to get out of the deal.

Sanofi’s unhappiness was already apparent when the company — now under new CEO Paul Hudson — posted a statement back in July that they were dropping the deal. But it wasn’t that simple. 

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Rit­ter bombs fi­nal PhI­II for sole lac­tose in­tol­er­ance drug — shares plum­met

More than two years ago Ritter Pharmaceuticals managed to find enough silver lining in its Phase IIb/III study — after missing the top-line mark — to propel its lactose intolerance toward a confirmatory trial. But as it turned out, the enthusiasm only set the biotech and its investors up to be sorely disappointed.

This time around there’s little left to salvage. Not only did RP-G28 fail to beat placebo in reducing lactose intolerance symptoms, patients in the treatment group actually averaged a smaller improvement. On a composite score measuring symptoms like abdominal pain, cramping, bloating and gas, patients given the drug had a mean reduction of 3.159 while the placebo cohort saw a 3.420 drop on average (one-sided p-value = 0.0106).

Ear­ly snap­shot of Ad­verum's eye gene ther­a­py sparks con­cern about vi­sion loss

An early-stage update on Adverum Biotechnologies’ intravitreal gene therapy has triggered investor concern, after patients with wet age-related macular degeneration (AMD) saw their vision deteriorate, despite signs that the treatment is improving retinal anatomy.

Adverum, on Wednesday, unveiled 24-week data from the OPTIC trial of its experimental therapy, ADVM-022, in six patients who have been administered with one dose of the therapy. On average, patients in the trial had severe disease with an average of 6.2 anti-VEGF injections in the eight months prior to screening and an average annualized injection frequency of 9.3 injections.

Alex Ar­faei trades his an­a­lyst's post for a new role as biotech VC; Sanofi vet heads to Vi­for

Too often, Alex Arfaei arrived too late. 

An analyst at BMO Capital Markets, he’d meet with biotech or pharmaceutical heads for their IPO or secondary funding and his brain, trained on a biology degree and six years at Merck and Endo, would spring with questions: Why this biomarker? Why this design? Why not this endpoint? Not that he could do anything about it. These execs were coming for clinical money; their decisions had been made and finalized long ago.