Mer­ck’s can­cer R&D jug­ger­naut ties up to lit­tle Drag­on­fly’s nat­ur­al born killer plat­form — with bil­lions on the line

A lit­tle more than a year af­ter Cel­gene bel­lied up to the part­ner­ship ta­ble with $33 mil­lion in cash to al­ly it­self with the up­start crew at Drag­on­fly, Mer­ck has now fol­lowed be­hind in search of what they’re hop­ing is a game-chang­ing ap­proach to treat­ing sol­id tu­mors.

“There’s no com­pa­ny that knows sol­id tu­mors more than Mer­ck,” says Drag­on­fly CEO Bill Haney, who re­cent­ly jumped in­to biotech with a pair of new com­pa­nies look­ing to make their mark in dif­fer­ent fields.

Mer­ck nev­er likes to talk num­bers and some of the par­tic­u­lars are in short sup­ply. But this isn’t a small-dol­lar deal. 

“It’s sig­nif­i­cant­ly more at­trac­tive eco­nom­i­cal­ly,” says Haney, com­pared to Cel­gene.

Tyler Jacks

Cel­gene paid $8.3 mil­lion up­front per pro­gram, Haney tells me, and Mer­ck was in­spired to go deep­er than that for a mul­ti-pro­gram ef­fort. Add it all up, and Mer­ck has agreed to pay up to $695 mil­lion per pro­gram, all in, in­clud­ing mile­stones.

The deal marks an­oth­er big step up for Drag­on­fly, which has a ster­ling rep built around its high-pro­file sci­en­tif­ic founders.

There’s Tyler Jacks, an MIT pro­fes­sor, HH­MI in­ves­ti­ga­tor and di­rec­tor of the David H. Koch In­sti­tute for In­te­gra­tive Can­cer Re­search. Berke­ley’s David Raulet, whose back­ground as an ex­pert in NK cells and tu­mor im­munol­o­gy helped spot­light some of the big ideas Drag­on­fly is pur­su­ing, clear­ly played a big role with this deal. Haney, an en­tre­pre­neur and film­mak­er (work­ing on a doc­u­men­tary about No­bel prize win­ner Jim Al­li­son) with close con­tacts to the Cam­bridge/Boston biotech hub, is at the helm. 

The com­pa­ny’s plat­form cen­ters on TriN­KETs (Tri-spe­cif­ic, NK cell En­gager Ther­a­pies), a bind­ing mech­a­nism that links nat­ur­al killer cells to the pro­teins found on the sur­face of can­cer cells. And that kind of ap­proach, they be­lieve, can cre­ate a po­tent next-gen im­munother­a­py ap­proach — po­ten­tial­ly a big deal for a com­pa­ny like Mer­ck. NK cells have be­come a pop­u­lar tar­get in can­cer R&D over the last few years as I/O has swelled in im­por­tance.

David Raulet

Haney is mov­ing fast af­ter de­but­ing this biotech a lit­tle more than a year ago. The CEO tells me that Drag­on­fly is hard at it, grow­ing its staff from 15 to 35 with more em­ploy­ees to be re­cruit­ed soon. The group is work­ing on its own pipeline, with plans to be in the clin­ic next year. And there’s al­so a clear po­ten­tial for ad­di­tion­al mar­quee part­ners to be added — at the right time.

The first or­der of busi­ness now is to do a good job for the part­ners they have, says Haney, adding that they have walked away from oth­er deals. 

“In the next 6 months we’ll an­nounce ad­di­tion­al tar­gets with ad­di­tion­al part­ners,” he says.

Mer­ck, mean­while, con­tin­ues to ex­e­cute on its plans to build a port­fo­lio around the PD-1 star Keytru­da, which has been a game chang­er in can­cer treat­ment. The hun­dreds of check­point stud­ies it’s ei­ther han­dling it­self or work­ing on with oth­ers has helped shed a light on sol­id tu­mors, and Mer­ck’s Roger Perl­mut­ter is well known for his in­ter­est in new tech — so long as it fits his bud­get in R&D.


Im­age: Bill Haney. DRAG­ON­FLY

Scoop: Boehringer qui­et­ly shut­ters a PhII for one of its top drugs — now un­der re­view

Boehringer Ingelheim has quietly shut down a small Phase II study for one of its lead drugs.

The private pharma player confirmed to Endpoints News that it had shuttered a study testing spesolimab as a therapy for Crohn’s patients suffering from bowel obstructions.

A spokesperson for the company tells Endpoints:

Taking into consideration the current therapeutic landscape and ongoing clinical development programs, Boehringer Ingelheim decided to discontinue our program in Crohn’s disease. It is important to note that this decision is not based on any safety findings in the clinical trials.

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Vas Narasimhan (Photographer: Jason Alden/Bloomberg via Getty Images)

No­var­tis de­tails plans to axe 8,000 staffers as Narasimhan be­gins sec­ond phase of a glob­al re­org

We now know the number of jobs coming under the axe at Novartis, and it isn’t small.

The pharma giant is confirming a report from Swiss newspaper Tages-Anzeiger that it is chopping 8,000 jobs out of its 108,000 global staffers. A large segment will hit right at company headquarters in Basel, as CEO Vas Narasimhan axes some 1,400 of a little more than 11,000  jobs in Switzerland.

The first phase of the work is almost done, the company says in a statement to Endpoints News. Now it’s on to phase two. In the statement, Novartis says:

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How pre­pared is bio­phar­ma for the cy­ber dooms­day?

One of the largest cyberattacks in history happened on a Friday, Eric Perakslis distinctly remembers.

Perakslis, who was head of Takeda’s R&D Data Sciences Institute and visiting faculty at Harvard Medical School at the time, had spent that morning completing a review on cybersecurity for the British Medical Journal. Moments after he turned it in, he heard back from the editor: “Have you heard what’s going on right now?”

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Lina Gugucheva, NewAmsterdam Pharma CBO

Phar­ma group bets up to $1B-plus on the PhI­II res­ur­rec­tion of a once dead-and-buried LDL drug

Close to 5 years after then-Amgen R&D chief Sean Harper tamped the last spade of dirt on the last broadly focused CETP cholesterol drug — burying their $300 million upfront and the few remaining hopes for the class with it — the therapy has been fully resurrected. And today, the NewAmsterdam Pharma crew that did the Lazarus treatment on obicetrapib is taking another big step on the comeback trail with a €1 billion-plus regional licensing deal, complete with close to $150 million in upfront cash.

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(AP Photo/Gemunu Amarasinghe)

Some phar­ma com­pa­nies promise to cov­er abor­tion-re­lat­ed trav­el costs — while oth­ers won't go that far yet

As the US Department of Health and Human Services promises to support the millions of women who would now need to cross state lines to receive a legal abortion, a handful of pharma companies have said they will pick up employees’ travel expenses.

GSK, Sanofi, Johnson & Johnson, BeiGene, Alnylam and Gilead have all committed to covering abortion-related travel expenses just four days after the Supreme Court overturned Roe v. Wade and revoked women’s constitutional right to an abortion.

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Aurobindo Pharma co-founders P. V. Ram Prasad Reddy (L) and K. Nityananda Reddy

Au­robindo Phar­ma re­ceives warn­ing let­ter from In­di­a's SEC fol­low­ing more FDA ques­tion marks

Indian-based generics manufacturer Aurobindo Pharma has been in the crosshairs of the FDA for several years now, but the company is also attracting attention from regulators within the subcontinent.

According to the Indian business news site Business Standard, a warning letter was sent to the company from the Securities Exchange Board of India, or SEBI.

The letter is related to disclosures made by the company on an ongoing FDA audit of the company’s Unit-1 API facility in Hyderabad, India as well as observations made by the US regulator between 2019 and 2022.

Bristol Myers Squibb (Alamy)

CVS re­sumes cov­er­age of block­buster blood thin­ner af­ter price drop fol­lows Jan­u­ary ex­clu­sion

Following some backlash from the American College of Cardiology and patients, Bristol Myers Squibb and Pfizer lowered the price of their blockbuster blood thinner Eliquis, thus ensuring that CVS Caremark would cover the drug after 6 months of it being off the major PBM’s formulary.

“Because we secured lower net costs for patients from negotiations with the drug manufacturer, Eliquis will be added back to our template formularies for the commercial segment effective July 1, 2022, and patient choices will be expanded,” CVS Health said in an emailed statement. “Anti-coagulant therapies are among the non-specialty products where we are seeing the fastest cost increases from drug manufacturers and we will continue to push back on unwarranted price increases.”

#Can­nes­Lions2022: Con­sumer health ex­ecs call on agen­cies to in­volve pa­tients in cre­ative process

CANNES — When Tamara Rogers joined GSK back in 2018, “science was king and R&D were the gods.” Now the global chief marketing officer of consumer healthcare wants to make room for another supreme being: the consumer.

As health and wellness becomes more relevant to consumers amid the pandemic, four health-focused executives called on marketers to involve patients in their creative process in a panel discussion at the Cannes Lions advertising creativity festival.

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Scoop: Roche scraps one of two schiz­o­phre­nia PhII tri­als af­ter fail­ing the pri­ma­ry end­point

Roche has terminated one of two Phase II trials testing its drug ralmitaront in patients with schizophrenia, the Big Pharma confirmed to Endpoints News.

The study was terminated last month, according to a June 22 update to the registry on clinicaltrials.gov. Begun in September 2020, the trial was looking at ralmitaront in patients with acute schizophrenia. The trial enrolled 286 patients out of an originally planned 308.

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