Mer­ck CEO Ken Fra­zier re­signs from Trump coun­cil in protest, and the pres­i­dent swift­ly bites back

Mer­ck CEO Ken Fra­zier, the on­ly African-Amer­i­can run­ning a top glob­al bio­phar­ma com­pa­ny, has very pub­licly bro­ken with Pres­i­dent Trump, re­sign­ing in protest from the ad­min­is­tra­tion’s man­u­fac­tur­ing coun­cil in the wake of a grow­ing con­tro­ver­sy over the pres­i­dent’s un­will­ing­ness to sin­gle out white su­prema­cy groups in the vi­o­lent protests over the week­end in Char­lottesville, VA.

This move by Fra­zier will put con­sid­er­able pres­sure on the rest of the in­dus­try and its lob­by­ists to sep­a­rate them­selves from Trump — some­thing they’ve been loath to do – and take a more crit­i­cal po­si­tion on Trump’s pres­i­den­cy as well as some of his poli­cies.

It is al­so di­rect­ed against a pres­i­dent who has proven to be no­to­ri­ous­ly thin-skinned about crit­i­cism of any kind. And Trump proved that by fir­ing back right at Fra­zier one of the in­dus­try’s weak spots. He tweet­ed:

Fra­zier, though, was clear­ly fed up with the pres­i­dent to­day.

Tak­ing to Trump’s fa­vorite medi­um, Twit­ter, Mer­ck quot­ed Fra­zier, say­ing:

I am re­sign­ing from the Pres­i­dent’s Amer­i­can Man­u­fac­tur­ing Coun­cil.

Our coun­try’s strength stems from its di­ver­si­ty and the con­tri­bu­tions made by men and women of dif­fer­ent faiths, races, sex­u­al ori­en­ta­tions and po­lit­i­cal be­liefs.

Amer­i­ca’s lead­ers must hon­or our fun­da­men­tal val­ues by clear­ly re­ject­ing ex­pres­sions of ha­tred, big­otry and group su­prema­cy, which run counter to the Amer­i­can ide­al that all peo­ple are cre­at­ed equal.

As CEO of Mer­ck and as a mat­ter of per­son­al con­science, I feel a re­spon­si­bil­i­ty to take a stand against in­tol­er­ance and ex­trem­ism.

The con­tro­ver­sy over the pres­i­dent’s state­ment cit­ing “many sides” for the vi­o­lence in Char­lottesville — which in­clud­ed the death of one of the pro­test­ers who turned out to op­pose demon­stra­tions by neo-Nazis and oth­er right-wing ex­trem­ists — has been gain­ing vol­ume steadi­ly.

The move clear­ly didn’t hurt Mer­ck’s stock. The phar­ma gi­ant’s shares were up 1% in ear­ly trad­ing to­day.

Fra­zier’s de­ci­sion to stand down now comes as the bio­phar­ma in­dus­try has sought to lob­by the White House for new rules al­low­ing for the repa­tri­a­tion of bil­lions of dol­lars in over­seas ac­counts at a more at­trac­tive tax rate. Fra­zier had been a reg­u­lar at the White House, along with oth­er top cor­po­rate CEOs in the in­dus­try.

In biotech, though, ex­ecs through­out the small­er com­pa­nies in the in­dus­try have voiced their op­po­si­tion to a num­ber of Trump’s ini­tia­tives, in par­tic­u­lar sin­gling out his stab at in­sti­tut­ing new im­mi­gra­tion poli­cies tar­get­ing sev­er­al Mus­lim-ma­jor­i­ty coun­tries. And it wasn’t long be­fore sup­port for Fra­zier’s move be­gan to pop up on Twit­ter.


Don­ald Trump and Ken Fra­zier dur­ing the an­nounce­ment of a new­ly de­signed phar­ma­ceu­ti­cal glass bot­tle in the Roo­sevelt Room on Ju­ly 20, 2017 SAUL LOEB/AFP/Get­ty Im­ages

BY­OD Best Prac­tices: How Mo­bile De­vice Strat­e­gy Leads to More Pa­tient-Cen­tric Clin­i­cal Tri­als

Some of the most time- and cost-consuming components of clinical research center on gathering, analyzing, and reporting data. To improve efficiency, many clinical trial sponsors have shifted to electronic clinical outcome assessments (eCOA), including electronic patient-reported outcome (ePRO) tools.

In most cases, patients enter data using apps installed on provisioned devices. At a time when 81% of Americans own a smartphone, why not use the device they rely on every day?

Pascal Soriot (AstraZeneca via YouTube)

Af­ter be­ing goad­ed to sell the com­pa­ny, Alex­ion's CEO set some am­bi­tious new goals for in­vestors. Then Pas­cal So­ri­ot came call­ing

Back in the spring of 2020, Alexion $ALXN CEO Ludwig Hantson was under considerable pressure to perform and had been for months. Elliott Advisers had been applying some high public heat on the biotech’s numbers. And in reaching out to some major stockholders, one thread of advice came through loud and clear: Sell the company or do something dramatic to change the narrative.

In the words of the rather dry SEC filing that offers a detailed backgrounder on the buyout deal, Alexion stated: ‘During the summer and fall of 2020, Alexion also continued to engage with its stockholders, and in these interactions, several stockholders encouraged the company to explore strategic alternatives.’

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Emmanuel Hanon (Viome)

Glax­o­SmithK­line’s head of vac­cine R&D is jump­ing to a well­ness com­pa­ny con­cen­trat­ing on the mi­cro­bio­me as re­ports of an ex­o­dus start to spread

Back in the fall of 2019, GlaxoSmithKline vaccine R&D chief Emmanuel Hanon had plenty of good things to say about a wellness company called Viome and CEO Naveen Jain. He was particularly interested in Viome’s technology for analyzing the gut microbiome and how that could intersect with new vaccine research.

Today, Hanon is jumping ship to join his collaborator as R&D chief as reports circulate of an exodus at GSK’s big vaccine group.

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Ex­clu­sive in­ter­view: Pe­ter Marks on why full Covid-19 vac­cine ap­provals could be just months away

Peter Marks, director of the FDA’s Center for Biologics Evaluation and Research, took time out of his busy schedule last Friday to discuss with Endpoints News all things related to his work regulating vaccines and the pandemic.

Marks, who quietly coined the name “Operation Warp Speed” before deciding to stick with his work regulating vaccines at the FDA rather than join the Trump-era program, has been the face of vaccine regulation for the FDA throughout the pandemic, and is usually spotted in Zoom meetings seated in front of his wife’s paintings.

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Mer­ck scraps their $425M Covid-19 drug in lat­est pan­dem­ic set­back

Seven months after paying $425 million cash to acquire it, Merck is scrapping a Covid-19 drug they hoped could provide one of the only treatments for severe hospitalized patients.

Merck’s decision comes after they faced significant and unexpected regulatory delays in getting the drug, known as MK-7110 or CD24Fc, across the finish line. The Big Pharma licensed the drug under the belief that it had already shown sufficient benefit in severe patients and they could help scale it up far faster than OncoImmune, its former owner, could. But in February, the company reported that the FDA insisted Merck run a new trial before seeking authorization.

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Judy Chou, AltruBio

Af­ter a ma­jor facelift, Al­tru­Bio says it's ready for a piv­otal fight against graft-ver­sus-host dis­ease

AltruBio got a makeover, and now it’s ready for its closeup.

CEO Judy Chou took over last January — when the biotech was still known as AbGemomics — on a mission to rebuild and rebrand. She culled the company’s oncology program to laser in on an old immunology candidate. Now with a new board, a new name and new cash, the company has its eyes set on a pivotal study.

On Thursday, AltruBio unveiled a $63 million Series A round to fund its transformation. Its lead candidate, neihulizumab (also known as AbGn-168H), is an immune checkpoint regulator targeting PSGL-1, a glycoprotein found on white blood cells and endothelial cells. Earlier this month, the Phase Ib candidate nabbed FDA fast track designation in steroid refractory acute graft-versus-host disease (SR-aGVHD).

Eli Lil­ly ax­es 163 Der­mi­ra staffers, shut­ters Men­lo Park site as it clos­es in around Dupix­ent ri­val le­brik­izum­ab

Eli Lilly made it clear when it shelled out $1.1 billion for Dermira that lebrikizumab is really what it wanted to buy. One year in, the pharma giant is completing its cleavage of the rest.

Days after unveiling the sale of Qbexza — Dermira’s only approved product, a piece of cloth to block excessive sweating — Lilly revealed plans to close down the biotech’s Menlo Park facility, putting 163 jobs on the chopping block. The San Francisco Business Times first reported on the WARN notice filed in early April.

Alise Reicin (L) and Tim Springer

Har­vard bil­lion­aire Tim Springer has lined up his lat­est biotech launch. And he's re­cruit­ed a star R&D ex­ec to man­age their break­through game plan

Tectonic Therapeutic isn’t your average biotech startup story. For all sorts of reasons.

There’s your billionaire Harvard scientist and philanthropist who’s personally bankrolling much of the operation. The CEO is one of the most prominent women involved in the global drug hunting business. And they have enough collective cachet between them to command virtually as much cash as they might dream of, at a time that biotech dreams are running beyond the fantastic.

But this story isn’t about them right now, so much as it is about a scientist who’s never quite been center stage in the floodlights of biostardom. There’s a whole group of prominent players, though, who believe that’s about to change. Players perfectly happy to gamble some significant coin to give that hope every chance possible of becoming a reality.

Andrew Kruse may not be an immediately recognizable name to you. But to his Harvard colleague Tim Springer, he’s a rock star. They co-founded the Institute for Protein Innovation together, a non-profit that the internationally renowned Springer has been funding with a fortune earned from a remarkable run of successful startups, from his first $100 million out of Millennium to the gusher of wealth that followed his decision to back Stéphane Bancel and the crew at mRNA pioneer Moderna.

Kruse has specialized in work revolving around GPCRs, or G protein-coupled receptors, that make up about a third of all — while still only scratching the surface of potential targets. He was a student of Brian Kobilka at Stanford, who won the Nobel Prize in 2012 for his contribution on the work on GPCRs. And Kruse has published extensively on his lab’s structural analysis of GPCRs, which Springer believes will open the door to a whole new field of drug R&D that can crack open a slew of currently “undruggable” targets to biologics — covering a gamut of both agonists and antagonists.

“We just have unparalleled experience in the biochemistry and biophysics of GPCRs,” says Springer about this new venture of his. “Andrew Kruse is a real star. He went from being a PhD student at Stanford to an assistant professor at Harvard Medical School — he had many papers out of his PhD — and he’s gone on to full professor at Harvard Medical School in 7 years. That is a record at least in modern times. The guy is just amazing. And he’s a nice guy.”

Springer is so convinced by the potential of Kruse’s research that he put up the first $5 million to seed the company 18 months ago. Terry McGuire — the co-founder at Polaris who goes back a long way with Springer — chipped in a million.

Which brings us to the nut of today’s news story.

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Near­ly a year af­ter Au­den­tes' gene ther­a­py deaths, the tri­al con­tin­ues. What hap­pened re­mains a mys­tery

Natalie Holles was five months into her tenure as Audentes CEO and working to smooth out a $3 billion merger when the world crashed in.

Holles and her team received word on the morning of May 5 that, hours before, a patient died in a trial for their lead gene therapy. They went into triage mode, alerting the FDA, calling trial investigators to begin to understand what happened, and, the next day, writing a letter to alert the patient community so they would be the first to know. “We wanted to be as forthright and transparent as possible,” Holles told me late last month.

The brief letter noted two other patients also suffered severe reactions after receiving a high dose of the therapy and were undergoing treatment. One died a month and a half later, at which point news of the deaths became public, jolting an emergent gene therapy field and raising questions about the safety of the high doses Audentes and others were now using. The third patient died in August.

“It was deeply saddening,” Holles said. “But I was — we were — resolute and determined to understand what happened and learn from it and get back on track.”

Eleven months have now passed since the first death and the therapy, a potential cure for a rare and fatal muscle-wasting disease called X-linked myotubular myopathy, is back on track, the FDA having cleared the company to resume dosing at a lower level. Audentes itself is no more; last month, Japanese pharma giant Astellas announced it had completed working out the kinks of the $3 billion merger and had restructured and rebranded the subsidiary as Astellas Gene Therapies. Holles, having successfully steered both efforts, departed.

Still, questions about precisely what led to the deaths of the 3 boys still linger. Trial investigators released key details about the case last August and December, pointing to a biological landmine that Audentes could not have seen coming — a moment of profound medical misfortune. In an emerging field that’s promised cures for devastating diseases but also seen its share of safety setbacks, the cases provided a cautionary tale.

Audentes “contributed in a positive way by giving a painful but important example for others to look at and learn from,” Terry Flotte, dean of the UMass School of Medicine and editor of the journal Human Gene Therapy, told me. “I can’t see anything they did wrong.”

Yet some researchers say they’re still waiting on Astellas to release more data. The company has yet to publish a full paper detailing what happened, nor have they indicated that they will. In the meantime, it remains unclear what triggered the events and how to prevent them in the future.

“Since Audentes was the first one and we don’t have additional information, we’re kind of in a holding pattern, flying around, waiting to figure out how to land our vehicles,” said Jude Samulski, professor of pharmacology at UNC’s Gene Therapy Center and CSO of the gene therapy biotech AskBio, now a subsidiary of Bayer.

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