Chris Garabedian. Perceptive

Per­cep­tive teams up with Chris Garabe­di­an to open up a new, $210M biotech fund fo­cused on A rounds

Per­cep­tive Ad­vi­sors is one of those pro­lif­ic biotech in­vestor groups which has tra­di­tion­al­ly en­joyed ze­ro­ing in on clin­i­cal-stage in­vest­ments and crossover rounds, a group that prefers more es­tab­lished drug de­vel­op­ment play­ers with near-term pay­off po­ten­tial.

But now they’re part­ner­ing with Xon­toge­ny chief and long­time biotech en­tre­pre­neur Chris Garabe­di­an on a $210 mil­lion fund — with mon­ey con­tributed by in­sti­tu­tion­al in­vestors and fam­i­ly funds — to go in­to the launch space with their first ear­ly-stage VC fund. Dubbed the Per­cep­tive Xon­toge­ny Ven­ture Fund, LP, or just PXV Fund, they plan to fa­vor up­starts that Garabe­di­an is fos­ter­ing in his in­cu­ba­tor. But they’ll al­so plan to reach out­side that in­ner cir­cle for more A rounds to back, with plans to dom­i­nate ini­tial fund­ing with $10 mil­lion to $20 mil­lion per new­born biotech.

And they have a new start­up to un­veil to­day in the com­ing out par­ty. It’s called Quel­lis Bio­sciences, comes out of Virid­i­an and gets $17 mil­lion in PXV mon­ey to ad­vance undis­closed an­ti­bod­ies for undis­closed tar­gets. body tech,The biotech has a li­cense to use Xen­cor’s an­ti­body tech, de­signed to ex­tend their half life to re­duce dos­ing.

Adam Stone Per­cep­tive

Click on the im­age to see the full-sized ver­sion

You can ex­pect a lot of the ear­ly mon­ey in to stay fair­ly well hid­den. As Garabe­di­an notes in an in­ter­view, they aren’t all go­ing to make it. So they’ll wait to be more forth­com­ing about some of these star­tups as they grow more as­sured of their po­ten­tial.

PXV has al­ready iden­ti­fied about half of the 8 to 10 com­pa­nies they plan to back out of fund 1. “I think this will go pret­ty quick­ly,’ says Garabe­di­an, who ex­pects the full $210 mil­lion to be com­mit­ted by late 2020 or ear­ly 2021. And once they’re done, they plan to ramp up fund 2.

Xon­toge­ny has pre­ferred a “more lean drug de­vel­op­ment ap­proach,” says Garabe­di­an, avoid­ing the big plays and cen­ter­ing on spe­cif­ic as­sets. And that suits Per­cep­tive just fine.

Per­cep­tive has large­ly stayed out of star­tups in the past be­cause “we don’t have peo­ple who have that ex­pe­ri­ence,” says Adam Stone, Per­cep­tive’s chief in­vest­ment of­fi­cer. But they do have a long­stand­ing re­la­tion­ship with Garabe­di­an, best known for his stint at the helm of Sarep­ta, who fills that hands-on role along with his team at Xon­toge­ny.

Stick­ing with an as­set-cen­tric ap­proach gives the new fund op­tions; M&A deals and part­ner­ing have been hot now for sev­er­al years for com­pa­nies get­ting to clin­i­cal proof of con­cept. IPOs have been run­ning steady as well. And if any of those win­dows close for a while, the part­ners ex­pect to be able to push through to when things pick back up again.

Tar­get­ing a Po­ten­tial Vul­ner­a­bil­i­ty of Cer­tain Can­cers with DNA Dam­age Re­sponse

Every individual’s DNA is unique, and because of this, every patient responds differently to disease and treatment. It is astonishing how four tiny building blocks of our DNA – A, T, C, G – dictate our health, disease, and how we age.

The tricky thing about DNA is that it is constantly exposed to damage by sources such as ultraviolet light, certain chemicals, toxins, and even natural biochemical processes inside our cells.¹ If ignored, DNA damage will accumulate in replicating cells, giving rise to mutations that can lead to premature aging, cancer, and other diseases.

Roivant par­lays a $450M chunk of eq­ui­ty in biotech buy­out, grab­bing a com­pu­ta­tion­al group to dri­ve dis­cov­ery work

New Roivant CEO Matt Gline has crafted an all-equity upfront deal to buy out a Boston-based biotech that has been toiling for several years now at building a supercomputing-based computational platform to design new drugs. And he’s adding it to the Erector set of science operations that are being built up to support their network of biotech subsidiaries with an eye to growing the pipeline in a play to create a new kind of pharma company.

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The fu­ture of mR­NA, J&J's vac­cine ad­comm, Mer­ck­'s $1.85B au­toim­mune bet and more

Welcome to the third installment of Endpoints Weekly, your review of the week’s top biopharma headlines. Want this in your inbox every Saturday morning? Current Endpoints readers can visit their reader profile to add Endpoints Weekly. New to Endpoints? Sign up here.

If this report was helpful in recapping it all for you, please do share it with your colleagues.

Get ready for FDA’s third Covid-19 vaccine

On the heels of a ringing endorsement from FDA reviewers earlier in the week, J&J‘s single-dose vaccine — which proved 66% effective at preventing symptomatic Covid-19, and 85% effective at stopping severe disease 28 days after administration — the advisory committee convened by the agency voted unanimously to recommend its emergency use authorization. It was “a relatively easy call,” according to one of the committee members — although that doesn’t mean they didn’t have questions. Jason Mast has the highlights from the discussion, including new information from the company, on this live blog.

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Fol­low biotechs go­ing pub­lic with the End­points News IPO Track­er

The Endpoints News team is continuing to track IPO filings for 2021, and we’ve designed a new tracker page for the effort.

Check it out here: Biopharma IPOs 2021 from Endpoints News

You’ll be able to find all the biotechs that have filed and priced so far this year, sortable by quarter and listed by newest first. As of the time of publishing on Feb. 25, there have already been 16 biotechs debuting on Nasdaq so far this year, with an additional four having filed their S-1 paperwork.

Steve Cutler, Icon CEO (Icon)

In the biggest CRO takeover in years, Icon doles out $12B for PRA Health Sci­ences to fo­cus on de­cen­tral­ized clin­i­cal work

Contract research M&A had a healthy run in recent years before recently petering out. But with the market ripe for a big buyout and the Covid-19 pandemic emphasizing the importance of decentralized trials, Wednesday saw a tectonic shift in the CRO world.

Icon, the Dublin-based CRO, will acquire PRA Health Sciences for $12 billion in a move that will shake up the highest rungs of a fragmented market. The merger would combine the 5th- and 6th-largest CROs by 2020 revenue, according to Icon, and the merger will set the newco up to be the second-largest global CRO behind only IQVIA.

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Per­cep­tive's fourth — yes, fourth — SPAC jumps to Nas­daq as the blank check tree con­tin­ues to ripen

The biotech SPAC boom has gone almost hand-in-hand with the industry’s IPO gold rush, and this week saw more blank check companies hop aboard the train.

Leading the way is Perceptive Advisors’ fourth SPAC, appropriately named Arya Sciences Acquisition IV, which priced Friday morning after raising $130 million. And on top of that, new Ziopharm executive chair James Huang is launching his own SPAC with MSD Partners and Panacea Venture, filing S-1 paperwork Thursday with plans to raise $200 million.

CEO Fred Aslan (Artiva)

NK cell ther­a­py play­er Arti­va makes some more noise, pulling in $120M Se­ries B less than a month af­ter Mer­ck deal

Not even one month after Big Pharma took notice of Artiva when Merck signed a collaboration worth nearly $2 billion in milestones, the off-the-shelf NK cell biotech already has its next big fundraise.

Artiva returns from the venture well Friday with a $120 million Series B round, money they will use to get their first program into the clinic and to file INDs for another two candidates. The raise marks the latest development in a rapidly expanding footprint for Artiva, which, in addition to the Merck deal last month, has now raised almost $200 million since its Series A last June.

With dust set­tled on ac­tivist at­tack, Lau­rence Coop­er leaves Zio­pharm to a new board

Laurence Cooper has done his part.

In the five years since he left a tenured position at Houston’s MD Anderson Cancer Center to become CEO of Boston-based Ziopharm, he’s steered the small-cap immunotherapy player through patient deaths in trials, clinical holds, short attacks and, most recently, an activist attack on the board.

So when the company has “fantastic news” like an IND clearance for a TCR T cell therapy program, he’s ready to pass on the baton.

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Doug Ingram (file photo)

Why not? Sarep­ta’s third Duchenne MD drug sails to ac­cel­er­at­ed ap­proval

Sarepta may be running into some trouble with its next-gen gene therapy approach to Duchenne muscular dystrophy. But when it comes to antisense oligonucleotides, the well-trodden regulatory path is still leading straight to an accelerated approval for casimersen, now christened Amondys 45.

We just have to wait until 2024 to find out if it works.

Amondys 45’s approval was unceremonious, compared to its two older siblings. There was no controversy within the FDA over approving a drug based on a biomarker rather than clinical benefit, setting up a powerful precedent that still haunts acting FDA commissioner Janet Woodcock as biotech insiders weighed her potential permanent appointment; no drama like the FDA issuing a stunning rejection only to reverse its decision and hand out an OK four months later, which got more complicated after the scathing complete response letter was published; no anxious tea leaf reading or heated arguments from drug developers and patient advocates who were tired of having corticosteroids as their loved ones’ only (sometimes expensive) option.

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