$1.9B in: Mod­er­na blue­prints $100M fa­cil­i­ty, plans to dou­ble the pipeline af­ter a $474M megaround

Stephane Ban­cel, Mod­er­na CEO

Mod­er­na has wrapped its lat­est megaround with $474 mil­lion to in­vest in a new man­u­fac­tur­ing fa­cil­i­ty and its fast-grow­ing staff as it looks to launch new stud­ies for im­muno-on­col­o­gy and dou­ble the num­ber of ther­a­pies in the pipeline as ear­ly as next sum­mer.

Mod­er­na tipped its hand on this fundrais­ing in a Form D a few days ago. But in an in­ter­view with End­points News, Mod­er­na CEO Stephane Ban­cel spelled out where the next big in­vest­ments will be made. At the top of that to-do list is build­ing a $100 mil­lion man­u­fac­tur­ing fa­cil­i­ty, which the Cam­bridge, MA-based biotech has been scout­ing a lo­ca­tion for.

“We are re­al­ly try­ing to in­vest in the plat­form,” says Ban­cel, “to be­come the best mR­NA com­pa­ny in the world…. We are play­ing a very long game.”

Mod­er­na dis­card­ed the clas­sic biotech mold the day it start­ed in busi­ness. Rather than stake their claim to new tech­nol­o­gy by prov­ing its worth in one or two drugs, the biotech im­me­di­ate­ly set out to raise the big bucks nec­es­sary to start work on a ma­jor pipeline that could even­tu­al­ly prove its worth for a whole range of dis­eases. Pro­grams rang­ing from vac­cines to rare dis­eases, on­col­o­gy, car­dio and more are in­clud­ed. This way, says Ban­cel, a sin­gle set­back shouldn’t cloud the com­pa­ny’s fu­ture.

Clin­i­cal pro­grams were a long time com­ing as Mod­er­na built up a range of big pre­clin­i­cal part­ner­ships. But Ban­cel says the num­ber of drugs in de­vel­op­ment has swelled to 11, with the first set of da­ta slat­ed to be re­leased in 2017. Mod­er­na al­so plans to add about 10 drugs to the clin­ic by next sum­mer, says the CEO, as the 450 staffers al­ready on board are joined by 100 more be­ing re­cruit­ed now for open po­si­tions. And the new man­u­fac­tur­ing fa­cil­i­ty need­ed to sup­port its de­vel­op­ment work will be ready by the end of 2017.

They don’t get much more rev­o­lu­tion­ary than Mod­er­na, a pri­vate com­pa­ny which be­lieves its mR­NA plat­form tech can de­liv­er the nec­es­sary pack­age to spur cells to pro­duce ther­a­peu­tics, es­sen­tial­ly turn­ing bod­ies in­to drug fac­to­ries.

To get here, Mod­er­na has now raised $1.9 bil­lion from in­vestors like As­traZeneca, with an­oth­er $230 mil­lion on the ta­ble from grants. In ad­di­tion to the fi­nanc­ing an­nounce­ment this morn­ing, Mod­er­na is al­so un­veil­ing a pact to de­vel­op a new Zi­ka vac­cine, with BAR­DA putting up $8 mil­lion to get the pro­gram start­ed while of­fer­ing an op­tion on $117 mil­lion more to get through a suc­cess­ful de­vel­op­ment pro­gram.

Al­to­geth­er, this new mon­ey comes close to the record $500 mil­lion that the com­pa­ny raised last year. Even­tu­al­ly, Ban­cel says the com­pa­ny should be ready for an IPO.

“We will take the com­pa­ny pub­lic,” he tells me. “There is no doubt about it.”

First, though, Mod­er­na will have to gath­er pos­i­tive mid-stage da­ta from sev­er­al lead­ing pro­grams, leav­ing no doubt that it can achieve its dreams.

Norbert Bischofberger. Kronos

Backed by some of the biggest names in biotech, Nor­bert Bischof­berg­er gets his megaround for plat­form tech out of MIT

A little over a year ago when I reported on Norbert Bischofberger’s jump from the CSO job at giant Gilead to a tiny upstart called Kronos, I noted that with his connections in biotech finance, that $18 million launch round he was starting off with could just as easily have been $100 million or more.

With his first anniversary now behind him, Bischofberger has that mega-round in the bank.

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Francesco De Rubertis

Medicxi is rolling out its biggest fund ever to back Eu­rope's top 'sci­en­tists with strange ideas'

Francesco De Rubertis built Medicxi to be the kind of biotech venture player he would have liked to have known back when he was a full time scientist.

“When I was a scientist 20 years ago I would have loved Medicxi,’ the co-founder tells me. It’s the kind of place run by and for investigators, what the Medicxi partner calls “scientists with strange ideas — a platform for the drug hunter and scientific entrepreneur. That’s what I wanted when I was a scientist.”

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Chas­ing Roche's ag­ing block­buster fran­chise, Am­gen/Al­ler­gan roll out Avastin, Her­ceptin knock­offs at dis­count

Let the long battle for biosimilars in the cancer space begin.

Amgen has launched its Avastin and Herceptin copycats — licensed from the predecessors of Allergan — almost two years after the FDA had stamped its approval on Mvasi (bevacizumab-awwb) and three months after the Kanjinti OK (trastuzumab-anns). While the biotech had been fielding biosimilars in Europe, this marks their first foray in the US — and the first oncology biosimilars in the country.

Seer adds ex-FDA chief Mark Mc­Clel­lan to the board; Her­cules Cap­i­tal makes it of­fi­cial for new CEO Scott Bluestein

→ On the same day it announced a $17.5 million Series C, life sciences and health data company Seer unveiled that it had lured former FDA commissioner and ex-CMS administrator Mark McClellan on to its board. “Mark’s deep understanding of the health care ecosystem and visionary insights on policy reform will be crucial in informing our thinking as we work to bring our liquid biopsy and life sciences products to market,” said Seer chief and founder Omid Farokhzad in a statement.

Daniel O'Day

No­var­tis hands off 3 pre­clin­i­cal pro­grams to the an­tivi­ral R&D mas­ters at Gilead

Gilead CEO Daniel O’Day’s new task hunting up a CSO for the company isn’t stopping the industry’s dominant antiviral player from doing pipeline deals.

The big biotech today snapped up 3 preclinical antiviral programs from pharma giant Novartis, with drugs promising to treat human rhinovirus, influenza and herpes viruses. We don’t know what the upfront is, but the back end has $291 million in milestones baked in.

Vas Narasimhan, AP Images

On a hot streak, No­var­tis ex­ecs run the odds on their two most im­por­tant PhI­II read­outs. Which is 0.01% more like­ly to suc­ceed?

Novartis CEO Vas Narasimhan is living in the sweet spot right now.

The numbers are running a bit better than expected, the pipeline — which he assembled as development chief — is performing and the stock popped more than 4% on Thursday as the executive team ran through their assessment of Q2 performance.

Year-to-date the stock is up 28%, so the investors will be beaming. Anyone looking for chinks in their armor — and there are plenty giving it a shot — right now focus on payer acceptance of their $2.1 million gene therapy Zolgensma, where it’s early days. And CAR-T continues to underperform, but Novartis doesn’t appear to be suffering from it.

So what could go wrong?

Actually, not much. But Tim Anderson at Wolfe pressed Narasimhan and his development chief John Tsai to pick which of two looming Phase III readouts with blockbuster implication had the better odds of success.

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Af­ter a decade, Vi­iV CSO John Pot­tage says it's time to step down — and he's hand­ing the job to long­time col­league Kim Smith

ViiV Healthcare has always been something unique in the global drug industry.

Owned by GlaxoSmithKline and Pfizer — with GSK in the lead as majority owner — it was created 10 years ago in a time of deep turmoil for the field as something independent of the pharma giants, but with access to lots of infrastructural support on demand. While R&D at the mother ship inside GSK was souring, a razor-focused ViiV provided a rare bright spot, challenging Gilead on a lucrative front in delivering new combinations that require fewer therapies with a more easily tolerated regimen.

They kept a massive number of people alive who would otherwise have been facing a death sentence. And they made money.

And throughout, John Pottage has been the chief scientific and chief medical officer.

Until now.

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On a glob­al romp, Boehringer BD team picks up its third R&D al­liance for Ju­ly — this time fo­cused on IPF with $50M up­front

Boehringer Ingelheim’s BD team is on a global deal spree. The German pharma company just wrapped its third deal in 3 weeks, going back to Korea for its latest pipeline pact — this time focused on idiopathic pulmonary fibrosis.

They’re handing over $50 million to get their hands on BBT-877, an ATX inhibitor from Korea’s Bridge Biotherapeutics that was on display at a science conference in Dallas recently. There’s not a whole lot of data to evaluate the prospects here.

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Servi­er scoots out of an­oth­er col­lab­o­ra­tion with Macro­Gen­ics, writ­ing off their $40M

Servier is walking out on a partnership with MacroGenics $MGNX — for the second time.

After the market closed on Wednesday MacroGenics put out word that Servier is severing a deal — inked close to 7 years ago — to collaborate on the development of flotetuzumab and other Dual-Affinity Re-Targeting (DART) drugs in its pipeline.

MacroGenics CEO Scott Koenig shrugged off the departure of Servier, which paid $20 million to kick off the alliance and $20 million to option flotetuzumab — putting a heavily back-ended $1 billion-plus in additional biobuck money on the table for the anti-CD123/CD3 bispecific and its companion therapies.