Mer­ck trig­gers a new round of lay­offs in R&D re­or­ga­ni­za­tion, push­ing more jobs in­to Cam­bridge, San Fran­cis­co

Mer­ck is con­firm­ing that it’s trig­gered a new round of lay­offs in its R&D group as it con­cen­trates and ex­pands its drug re­search work in two ma­jor biotech hubs, Cam­bridge, MA and San Fran­cis­co. The re­struc­tur­ing in­cludes adding a new lab in Cam­bridge, which will fo­cus on the fast-grow­ing mi­cro­bio­me field.

A spokesper­son for Mer­ck tells me:

“With­in Mer­ck Re­search Lab­o­ra­to­ries, we are mak­ing some or­ga­ni­za­tion­al changes with­in our dis­cov­ery, pre-clin­i­cal and ear­ly de­vel­op­ment area to en­able ear­li­er ac­cess to emerg­ing ex­ter­nal sci­ence and tech­nol­o­gy to aug­ment our lead­ing dis­cov­ery and de­vel­op­ment ca­pa­bil­i­ties. These changes in­clude in­creas­ing our in­vest­ment in ex­plorato­ry bi­ol­o­gy in ar­eas where bio­med­ical re­search is con­verg­ing, specif­i­cal­ly in Cam­bridge, Mass. and the San Fran­cis­co Bay area, Calif.  Un­for­tu­nate­ly, these changes will re­sult in work­force re­duc­tions at our Ke­nil­worth and Rah­way, N.J. sites and our North Wales, Pa. screen­ing fa­cil­i­ty as we shift re­sources and per­son­nel.

“Ad­di­tion­al­ly, here’s some back­ground on Cam­bridge and the San Fran­cis­co Bay area sites:

“We are ex­pand­ing MRL’s ear­ly dis­cov­ery re­search ca­pa­bil­i­ties by in­vest­ing in new lab­o­ra­to­ries at our Cam­bridge, Mass. site. Re­search will fo­cus on emerg­ing sci­ence, ag­nos­tic of ther­a­peu­tic area. Ini­tial ex­plorato­ry re­search will in­clude host-pathogen in­ter­ac­tions and the role of the mi­cro­bio­me in dis­ease process­es. The site is sched­uled to open in late 2016.”

The spokesper­son de­clined to spec­i­fy ex­act­ly how many jobs are be­ing cut. “We’re not pro­vid­ing a break­down of the changes or spe­cif­ic num­bers at this time, as it will in­clude sep­a­ra­tions and moves,” she not­ed.

Mer­ck’s move fol­lows a ma­jor trend in bio­phar­ma R&D, as the biggest com­pa­nies con­cen­trate more and more of their work in the big hubs. And vir­tu­al­ly all of the ma­jor play­ers have down­sized at one time or an­oth­er.

Close to three years ago, Mer­ck trig­gered a ma­jor re­or­ga­ni­za­tion in its R&D ranks, as the then new R&D chief Roger Perl­mut­ter set in mo­tion a plan that in­volved 8,500 lay­offs, all of which were piled on a re­struc­tur­ing ef­fort that was an­nounced ear­li­er.

Those lay­offs fol­lowed a years-long gap in sig­nif­i­cant new drug ap­provals and a string of clin­i­cal set­backs. Since then, though, Mer­ck land­ed a land­mark ap­proval of Keytru­da, now the num­ber two check­point in­hibitor on the block­buster can­cer mar­ket, along with an OK ear­ly this year for its hep C com­bo, Zepati­er, which is be­ing sold in a ri­val-in­fest­ed field.

Derek Lowe at In the Pipeline, a close­ly fol­lowed blog that has fre­quent­ly been a leader in flag­ging scut­tle­butt about R&D re­or­ga­ni­za­tions, was the first to spot­light ru­mors of a move. He re­port­ed:

The North Wales, PA site is be­ing closed (the screen­ing op­er­a­tions there are mov­ing to Ke­nil­worth). New Jer­sey dis­cov­ery chem­istry (Ke­nil­worth and Rah­way) is be­ing cut by 20%, and Rah­way’s med-chem is en­tire­ly mov­ing to Ke­nil­worth over the next few months. Dis­ease area bi­ol­o­gy in Ke­nil­worth is shut­ting down (not sure what the ram­i­fi­ca­tions of that one might be). I’m told that some peo­ple will be of­fered a chance to move to the Boston or Bay area sites, and all of these de­ci­sions will be made by the end of Sep­tem­ber. And ap­par­ent­ly they’ve al­so told every­one that more changes will be com­ing in the next few weeks, so I’m sure that’s calmed every­thing down as well.

Da­ta Lit­er­a­cy: The Foun­da­tion for Mod­ern Tri­al Ex­e­cu­tion

In 2016, the International Council for Harmonisation (ICH) updated their “Guidelines for Good Clinical Practice.” One key shift was a mandate to implement a risk-based quality management system throughout all stages of a clinical trial, and to take a systematic, prioritized, risk-based approach to clinical trial monitoring—on-site monitoring, remote monitoring, or any combination thereof.

Mer­ck scraps Covid-19 vac­cine pro­grams af­ter they fail to mea­sure up on ef­fi­ca­cy in an­oth­er ma­jor set­back in the glob­al fight

After turning up late to the vaccine development game in the global fight against Covid-19, Merck is now making a quick exit.

The pharma giant is reporting this morning that it’s decided to drop development of 2 vaccines — V590 and V591 — after taking a look at Phase I data that simply don’t measure up to either the natural immune response seen in people exposed to the virus or the vaccines already on or near the market.

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Hal Barron, GSK via YouTube

What does $29B buy you in Big Phar­ma? In Glax­o­SmithK­line’s case, a whole lot of un­com­fort­able ques­tions about the pipeline

Talk about your bad timing.

A little over a week ago, GSK R&D chief Hal Barron marked his third anniversary at the research helm by taking a turn at the virtual podium during JP Morgan to make the case that he and his team had built a valuable late-stage pipeline capable of churning out more than 10 blockbusters in the next 5 years.

And then, just days later, one of the cancer drugs he bet big on as a top prospect — bintrafusp, partnered with Merck KGaA — failed its first pivotal test in non-small cell lung cancer.

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Matt Gline (L) and Vivek Ramaswamy

Scoop: Vivek Ra­maswamy is hand­ing the CEO job to a top lieu­tenant at Roivant — but he’s not ex­act­ly leav­ing the biotech scene

Over the past 7 years since founding Roivant, Vivek Ramaswamy has been a constant blur of biotech building motion.

He launched his first biotech with an Alzheimer’s drug he picked up cheap, and watched the experiment implode in one of the highest profile pivotal disasters seen in the last decade. But it didn’t slow the 30-something exec down; if anything, he hit the accelerator. Ramaswamy blazed global paths and went on to raise billions to spur the creation of a large lineup of little Vants promising big things at a fast pace. He sold off a section of the Vant brigade to Sumitomo Dainippon for $3 billion. And more recently the relentless dealmaker has been building a computational discovery arm to add an AI-driven approach to kicking up new programs and companies, supplementing the in-licensing drive while pursuing advances that have created more than 700 jobs at Roivant, with $2 billion in reserves.

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José Baselga, AstraZeneca cancer chief (Brent N. Clarke/FilmMagic via Getty Images)

As­traZeneca's Calquence nabs an­oth­er win against Im­bru­vi­ca, but Eli Lil­ly is on its heels

Three years after first launching Calquence as a second generation BTK inhibitor, AstraZeneca continues to tout new data to compete with J&J and AbbVie’s first generation blockbuster Imbruvica.

The British pharma announced on Monday that Calquence passed a head-to-head Phase III study against Imbruvica in chronic lymphocytic leukemia, proving non-inferior — i.e. just as good — as the older drug. Although AstraZeneca did not break down any of the numbers, they said the drug proved superior on safety, triggering fewer cases of atrial fibrillation, an irregular heartbeat that can lead to stroke or heart failure.

Ron Cooper, Albireo CEO

Al­bireo just ad­vanced down to the 10-yard line at the FDA. And Ron Coop­er’s team is get­ting prepped for the next big play

When Albireo Pharma’s board $ALBO moved to bring in Ron Cooper as the CEO more than 5 years ago, the development-stage company went with an experienced commercial player who had a big-time position on his resume after running Bristol Myers’ commercial ops in Europe.

Now, after successfully navigating a pivotal study, putting them in a foot race with a rival toward an FDA OK, Cooper is getting a boost from regulators on the last drive back to an arena he understands completely.

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Roche amps up its bis­pe­cif­ic at­tack on Eylea with more PhI­II da­ta — but just how threat­en­ing is it?

Roche has another stack of data to back up its longer-acting challenger to Eylea — although it’s still far from certain just how much they can threaten Regeneron’s dominance.

The latest Phase III results come from two trials that enrolled 1,329 patients with neovascular age-related macular degeneration. With 45% of people in both studies getting faricimab 16 weeks apart during the first year, the bispecific still induced the same level of gains in visual acuity as Eylea every 8 weeks did, Roche’s Genentech reported.

Can strug­gling Iterum turn the cor­ner to an an­tibi­ot­ic suc­cess sto­ry? They will know in six months

More than five years after Corey Fishman and Michael Dunne dusted sulopenem off Pfizer’s shelves — the second castoff antibiotic they’ve brought out of the pharma giant — and founded Iterum Therapeutics around that single drug, they have lined up a quick shot at approval with priority review from the FDA.

The decision, six months from now, will mark a make-or-break moment for a struggling biotech that has just enough cash to keep the lights on until the third quarter.

Bahija Jallal, Immunocore

Buried in Im­muno­core's IPO fil­ings? A kick­back scheme from a now for­mer em­ploy­ee

Immunocore spent much of 2019 dealing with the fallout of the Neil Woodford scandal, as the former star investor’s fall crashed the biotech’s valuation out of unicorn range. Now it turns out that the company spent 2020 dealing with another internal scandal.

The longtime UK biotech darling disclosed in their IPO filing last week that they had fallen victim to an alleged kickback scheme involving one of their employees. After a whistleblower came forward, they said in their F-1, they spent the summer and spring investigating, finding fraud on the part of an employee and two outside vendors.