Ovid adds $26M to its cof­fers as Take­da deal clos­es, build­ing a war chest for pipeline con­struc­tion work

Je­re­mey Levin, Ovid

(Ed­i­tor’s note: Four days af­ter we pub­lished this sto­ry, Ovid fol­lowed up to say that the Form D fil­ing was for the shares it is­sued to Take­da for their mi­nor­i­ty stake in the com­pa­ny af­ter strik­ing a 50/50 deal on de­vel­op­ing one of Take­da’s pro­grams. “At the time you reached out, we were con­strained by our agree­ment with Take­da from dis­cussing the num­bers you re­port­ed,” he not­ed in an e-mail to me. “Af­ter speak­ing with Take­da, we can now tell you that the $25.8m was not in con­nec­tion with a fi­nanc­ing. The shares were is­sued to Take­da in con­nec­tion with our li­cense of OV935. We did not re­ceive any cash.”)

Last week, as the ex­ec­u­tive team at Ovid Ther­a­peu­tics was wrap­ping up a deal to join forces with Take­da on a new de­vel­op­ment pro­gram, the New York-based biotech was al­so qui­et­ly prep­ping a fil­ing on its lat­est cap­i­tal raise.

Just as the Take­da deal was an­nounced, Ovid was get­ting ready to file a Form D out­lin­ing a $25.8 mil­lion fundrais­ing.

The com­pa­ny tells me that they’re stay­ing mum about this lat­est de­vel­op­ment, which comes 18 months af­ter a $75 mil­lion raise to fund clin­i­cal tri­al work on their lead drug, OV101, in-li­censed from Lund­beck.

The more re­cent deal with Take­da, adding a 50/50 joint ven­ture to de­vel­op a new drug for rare epilep­tic en­cephalopathies, fits in­to their plan to scour glob­al pipelines to find new drugs for neu­rol­o­gy.

CEO Je­re­my Levin, oust­ed from a trou­bled Te­va in 2013, made his rep do­ing busi­ness de­vel­op­ment deals for Bris­tol-My­ers Squibb dur­ing the fa­mous “String of Pearls” era. Now, he’s gath­er­ing pearls for his own com­pa­ny, which he plans to build in­to an in­dus­try pow­er­house af­ter many Big Phar­ma play­ers dropped out of the CNS field fol­low­ing a rash of fail­ures.

There’s no telling how much Ovid plans to raise for the cur­rent round now in play. But he has a siz­able syn­di­cate back­ing him.

Fi­deli­ty Man­age­ment and Re­search Com­pa­ny led the last round in 2015, with help from Cowen Pri­vate In­vest­ments, Sanofi-Gen­zyme BioVen­tures, Tekla Cap­i­tal Man­age­ment, Sphera Glob­al Health­care Fund, Jen­ni­son As­so­ci­ates (on be­half of cer­tain clients), Red­mile Group, and Cor­morant As­set Man­age­ment, as well as some undis­closed “blue chip mu­tu­al funds and lead­ing life sci­ences in­vestors.” Ex­ist­ing Ovid in­vestors, in­clud­ing Dou­ble­Line Eq­ui­ty Health­care Fund, al­so par­tic­i­pat­ed.

“There are oth­er com­pa­nies we are talk­ing to,” Levin told me last week.  And pipeline build­ing and de­vel­op­ment isn’t cheap. Ovid plans to dou­ble the size of its staff this year, adding a new group it’s build­ing in Cam­bridge, MA to work with Take­da.

Part club, part guide, part land­lord: Arie Bellde­grun is blue­print­ing a string of be­spoke biotech com­plex­es in glob­al boom­towns — start­ing with Boston

The biotech industry is getting a landlord, unlike anything it’s ever known before.

Inspired by his recent experiences scrounging for space in Boston and the Bay Area, master biotech builder, investor, and global dealmaker Arie Belldegrun has organized a new venture to build a new, 250,000 square foot biopharma building in Boston’s Seaport district — home to Vertex and a number of up-and-coming biotech players.

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Novotech CRO Ex­pands Chi­na Team as Biotech De­mand for Clin­i­cal Tri­als In­creas­es up to 79%

An increase in demand of up to 79% for clinical trials in China has prompted Novotech the Asia-Pacific CRO to rapidly expand the China team, appointing expert local clinical executives to their Shanghai and Hong Kong offices. The company is planning to expand their team by 30% over the next quarter.

Novotech China has seen considerable demand recently which is borne out by research from GlobalData:
A global migration of clinical research is occurring from high-income countries to low and middle-income countries with emerging economies. Over the period 2017 to 2018, for example, the number of clinical trial sites opened by biotech companies in Asia-Pacific increased by 35% compared to 8% in the rest of the world, with growth as high as 79% in China.
Novotech CEO Dr John Moller said China offers the largest population in the world, rapid economic growth, and an increasing willingness by government to invest in research and development.
Novotech’s 23 years of experience working in the region means we are the ideal CRO partner for USA biotechs wanting to tap the research expertise and opportunities that China offers.
There are over 22,000 active investigators in Greater China, with about 5,000 investigators with experience on at least 3 studies (source GlobalData).

UP­DAT­ED: With loom­ing ‘apoc­a­lypse of drug re­sis­tance,’ Mer­ck’s com­bi­na­tion an­tibi­ot­ic scores FDA ap­proval on two fronts

Merck — one of the last large biopharmaceuticals companies in the beleaguered field of antibiotic drug development — on Wednesday said the FDA had sanctioned the approval of its combination antibacterial for the treatment of complicated urinary tract and intra-abdominal infections.

To curb the rise of drug-resistant bacteria and maintain the efficacy of the therapy, Recarbrio (and other antibacterials) — the drug must be used to treat or prevent infections that are proven or strongly suspected to be caused by susceptible gram-negative bacteria, Merck $MRK said.

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John McHutchison in 2012. Getty Images

The $1.1M good­bye: Gilead CSO John McHutchi­son is out as Daniel O’Day shakes up the se­nior team

Just a little more than a year after John McHutchison grabbed a promotion to become CSO at Gilead in the wake of Norbert Bischofberger’s exit, he’s out amid a shakeup of the senior team that is also triggering the departure of two other top execs.

Gilead stated that McHutchison “has decided to step down” from the job as of August 2nd. And their SEC filing notes that he’ll be getting a $1.1 million check to settle up on his contract.

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Thomas Gajewski, David Steinberg. (CRI, Pyxis)

Bay­er, Long­wood back star re­searcher's deep dive in­to the tu­mor mi­croen­vi­ron­ment for new I/O tar­gets

From PD-1 targeting to the RAS pathway to the STING complex, Thomas Gajewski has spent the past two decades of his career decoding the various ways the immune system can be unleashed to defend against cancer. So when the University of Chicago professor comes around to putting all his findings into a new platform for finding new targets, VCs and pharma groups alike pay attention.

“He’s been studying T cells for 20 years, plus he’s one of the world’s leaders if not the world leader in the space,” David Steinberg, partner at Longwood Fund, said. “Furthermore, let me add he did a lot of the foundational research and also some of the seminal clinical trials in the existing set of I/O agents. He understands the space really well, he understands the current strengths, and I think he understood really well what was missing, so he knew where to look.”

Kamala Harris speaking yesterday at the Des Moines Register Iowa Presidential Candidate Forum [via Getty]

Who’s the tough­est on drug prices? A game of po­lit­i­cal one-up­man­ship is dri­ving the pol­i­cy de­bate in Wash­ing­ton

Earlier this week we got a look at Senator Kamala Harris’ position on drug prices. She’s proposing that HHS take an average price from single-payer systems like the UK, Germany and Canada — which leverage market access for lower prices — and use that to set the US price. Anything drug companies collect above that would be taxed at a rate of 100%.

And the rhetoric is scathing:
While families struggle to make it to the end of the month, pharmaceutical companies are turning record profits. They’re spending nearly as much on advertising as R&D. They’re manipulating their market power to hike prices on lifesaving generic drugs. They’re making twice the profit of the average industry in America and still increased drug prices by 10.5% over the past six months alone. Meanwhile, they are charging dramatically higher prices to American consumers.
That’s an escalation on Joe Biden’s plan, which includes drug importation from those cheaper markets as well as allowing Medicare to negotiate prices — something that virtually all Dems agree on now.

H1 analy­sis: The high-stakes ta­ble in the biotech deals casi­no is pay­ing out some record-set­ting win­nings

For years the big trend among dealmakers at the major players has been centered on ratcheting down upfront payments in favor of bigger milestones. Better known as biobucks for some. But with the top 15 companies competing for the kind of “transformative” pacts that can whip up some excitement on Wall Street, with some big biotechs like Regeneron now weighing in as well, cash is king at the high stakes table.

We asked Chris Dokomajilar, the head of DealForma, to crunch the numbers for us, looking over the top 20 deals for the past decade and breaking it all down into the top alliances already created in 2019. Gilead has clearly tipped the scales in terms of the coin of the bio-realm, with its record-setting $5 billion upfront to tie up to Galapagos’ entire pipeline.

Dokomajilar notes:

We’re going to need a ‘three comma club’ for the deals with over $1 billion in total upfront cash and equity. The $100 million-plus club is getting crowded at 164 deals in the last decade with new deals being added towards the top of the chart. 2019 already has 14 deals with at least $100 million in upfront cash and equity for a total year-to-date of over $9 billion. That beats last year’s $8 billion and sets a record.

Add upfronts and equity payments and you get $11.5 billion for the year, just shy of last year’s record-setting $11.8 billion.

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Takeda's trans­la­tion­al cell ther­a­py group revs up for a race to the clin­ic with off-the-shelf CAR-T

Four years after Takeda launched a wide-ranging induced pluripotent stem cell project with the researchers at Nobel prize-winning Shinya Yamanaka’s lab at the University of Kyoto, the pharma company is taking delivery of the first of what it hopes will be a whole pipeline of iPS cell-derived therapies that can deliver on the promise of off-the-shelf CAR-T therapies.

From here, Stefan Wildt — the head of pharma sciences and translational cell therapy at Takeda — and his group of 100-plus scientists will be charged with steering their way to the clinic as they build out the manufacturing and support work for this pipeline-in-the-making. 

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SJ Lee [File photo]

Go­ing in­side cells, Sung Joo Lee has sketched some big goals for his small — but glob­al — team of drug hunters

For a small biotech based in South Korea with a research arm in Cambridge, MA, Orum Therapeutics has sketched out some big goals aimed at developing antibodies for intracellular targets. And now they have a new $30 million round to push the work forward, aiming at a slate of currently undruggable quests.

Orum has been working on a platform tech out of Ajou University that relies on endocytosis to smuggle antibodies and their cargo inside a cell. They’ve published work in Nature that illustrates its preclinical potential in RAS mutations, and KRAS is on their list of targets. 

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