Pe­ter Thiel-backed ATAI is prepar­ing to go to Nas­daq, as in­ter­est in psy­che­delics reach­es fever pitch

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The team be­hind ATAI Life Sci­ences has ratch­eted up mo­men­tum over the last few months, and now they’re look­ing to cap­i­tal­ize with an IPO.

Backed by bil­lion­aire Pe­ter Thiel, ATAI filed its SEC pa­per­work late Tues­day and out­lined its plans to take its port­fo­lio of ex­per­i­men­tal psy­che­del­ic med­i­cines to Nas­daq. They’ve list­ed a $100 mil­lion raise for now, though that fig­ure has com­mon­ly proved to be a mere place­hold­er dur­ing the biotech boom and the com­pa­ny could end up rais­ing much more.

Take, for ex­am­ple, an­oth­er biotech that just went pub­lic last week in Re­cur­sion. The AI drug de­vel­op­ers al­so pen­ciled in $100 mil­lion but end­ed up rais­ing $436 mil­lion once their IPO closed, good for the sec­ond-biggest IPO raise of 2021 be­hind on­ly Sana.

Flo­ri­an Brand

The in­dus­try will have to wait and see just how much ATAI ends up rais­ing, but they’ll cer­tain­ly add to the hefty to­tal among biotech so far this year. In 2021, there have now been 46 biotechs to ei­ther file or price their IPOs notch­ing a com­bined $5.46 bil­lion tal­ly across the de­buts, per an End­points News tal­ly.

If ATAI’s pre­vi­ous two fundrais­es are any in­di­ca­tion, their fi­nal IPO to­tal could be sig­nif­i­cant. Last No­vem­ber, ATAI raised $125 mil­lion in a Se­ries C that was co-led by Thiel’s firm, scor­ing the com­pa­ny a $1 bil­lion post-mon­ey val­u­a­tion. Then in March, ATAI “dou­bled down” on their strat­e­gy, as CEO Flo­ri­an Brand told End­points at the time, scor­ing a $157 mil­lion Se­ries D.

That marked a four-month span in which the com­pa­ny saw near­ly $300 mil­lion of cap­i­tal flow in­to its cof­fers, book­end­ing the ad­di­tion of Recog­ni­fy Life Sci­ences and its schiz­o­phre­nia pro­grams in­to the ATAI fam­i­ly of com­pa­nies.

ATAI’s busi­ness mod­el for de­vel­op­ing ther­a­peu­tics cov­er­ing a range of men­tal health dis­or­ders in­volves bring­ing port­fo­lio com­pa­nies un­der one um­brel­la, some­thing that Brand told End­points last month had been dri­ving the heavy in­ter­est with the con­sec­u­tive nine-fig­ure rais­es. Brand re­cent­ly brought in the 14th such port­fo­lio firm a few weeks ago with Psy­ber, which looks to im­prove men­tal health dis­or­ders and in­duce be­hav­ioral changes through “brain com­put­er in­ter­face” tech­nol­o­gy.

With the funds from the IPO, ATAI has iden­ti­fied pro­grams from six of its com­pa­nies that will be the pri­ma­ry fo­cus. The S-1 lists the com­pa­nies as Per­cep­tion, Recog­ni­fy, De­meRx, GA­BA, Neu­ronasal and Viridia, with ATAI look­ing to launch ei­ther Phase I or Phase II stud­ies for their drug can­di­dates.

The dis­or­ders in­volved in­clude treat­ment re­sis­tant de­pres­sion, schiz­o­phre­nia, opi­oid use dis­or­der, gen­er­al­ized anx­i­ety dis­or­der and mild trau­mat­ic brain in­jury.

Psy­che­delics are see­ing a come­back and in­vestors have flocked to­ward the field, as ev­i­denced by ATAI’s pre­vi­ous rais­es and the $146.6 mil­lion IPO last Sep­tem­ber for Com­pass Path­ways. The promi­nent in­vestor firm RA Cap­i­tal Man­age­ment, which par­tic­i­pates in a pletho­ra of biotech crossover rounds, al­so re­cent­ly led a $125 mil­lion Se­ries B for GH Re­search, an Irish com­pa­ny look­ing at re­pur­pos­ing the drug known as “toad ven­om” for ther­a­peu­tic pur­pos­es.

So­cial: Pe­ter Thiel, AP Im­ages

Image courtesy of The Janssen Pharmaceutical Companies of Johnson & Johnson.

Pro­tect­ing the glob­al phar­ma­ceu­ti­cal in­no­va­tion ecosys­tem – what’s at stake?

We are living in a new era of healthcare that is rapidly advancing progress impacting patient outcomes and experiences. We’ve seen a remarkable pace of transformational innovation, applied research, and advanced clinical development over the last decade.

Despite this tremendous progress, there is much more work to be done, and patients are counting on us – now more than ever – to continue that momentum. At the heart of our industry is a focus on developing and delivering medicines for some of the world’s most challenging diseases, including those that have few or no effective treatments today.

End­points 20(+2) un­der 40, 2023; Bio­phar­ma's high­est-paid CEOs; N-of-1 CRISPR sto­ry goes on af­ter tragedy; and more

Welcome back to 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.

We will be off Monday in observance of Memorial Day — and when we get back, it will be a straight march to ASCO, BIO and more. Enjoy the (long) weekend!

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Rich Horgan (R) with his late brother, Terry

Rich Hor­gan spear­head­ed a gene ther­a­py for his broth­er. The tri­al end­ed in tragedy, but the work con­tin­ues for more pa­tients

Rich Horgan’s quest to create a custom gene therapy for his brother, Terry, ended in tragedy. But Horgan doesn’t believe it’s the end of the story.

Terry, a 27-year-old patient with Duchenne muscular dystrophy, died last October just eight days after receiving the therapy in a clinical trial in which he was the only participant. The case raised questions about the safety of certain gene therapies and what would happen to other drug programs under a nonprofit that Horgan created, called Cure Rare Disease.

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Bio­phar­ma's 20 high­est-paid CEOs of 2022, each bring­ing in $20M+ pay­days

Even in a down year for much of the biopharma market, 20 CEOs brought in pay packages valued at more than $20 million, an Endpoints News analysis found.

Endpoints collected data on more than 350 CEO compensation packages, covering a wide range of pharma, biotech, and life sciences companies. All told, the 20 largest earners made over $725 million in 2022 — an average package of $36.4 million. Three brought in paydays over $50 million, and one CEO broke the $100 million mark.

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Mi­rati’s drug sitra­va­tinib flops PhI­II in com­bo with Op­di­vo for cer­tain lung can­cer

Mirati Therapeutics’ path to a second drug approval will likely have to wait. The San Diego biotech company said Wednesday that its investigational lung cancer drug failed a Phase III trial testing it in combination with Bristol Myers Squibb’s Opdivo.

The drug, sitravatinib, and Opdivo weren’t better than the chemo drug docetaxel at keeping patients alive, Mirati said in a press release. The spectrum-selective kinase inhibitor missed the primary goal of overall survival in patients with second- or third-line advanced non-squamous, non-small cell lung cancer.

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The 20(+2) un­der 40: Your guide to the next gen­er­a­tion of biotech lead­ers

This year’s list of 20 biotech leaders under the age of 40 includes a huge range of ambitions. Some of our honorees are planning to create the next big drug giant. Others are pushing the bounds of AI. One is working to revolutionize TB testing. All are compelling talents who are still young in age, but already far along in achievement.

And, as in years past, we went over. The 20 are actually 22 because of two double profiles that reflect how important teamwork is in the industry. As one of our honorees, Joe Illingworth of DJS Antibodies, told me in our interview, “It takes a village to raise a biotech.”

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Athena Countouriotis, Avenzo Therapeutics CEO (website via Nasdaq)

Ex-Turn­ing Point ex­ecs plan to have their next bet, Aven­zo, on the Nas­daq next sum­mer

The crew at Turning Point Therapeutics is back together for a new biotech that wants to acquire early-stage oncology small molecules, including antibody drug conjugates, and potentially form partnerships with China-based drug developers for ex-China rights as it eyes a speedy leap onto the Nasdaq around this time next year, CEO Athena Countouriotis told Endpoints News.

After selling Turning Point to Bristol Myers Squibb, announced at the onset of last year’s ASCO confab, she and colleague Mohammad Hirmand founded Avenzo Therapeutics. The CEO and CMO already have approximately $200 million in seed and Series A financing from five big-name investors to evaluate which drugs to bring into its pipeline. That includes SR One, OrbiMed, Foresite Capital, Citadel’s Surveyor Capital and Lilly Asia Ventures. Bidding wars for assets have led Avenzo to miss out on some deals in recent months, but the biotech has three active term sheets and hopes to bring in its first asset in the third quarter, Countouriotis said in a Friday morning interview.

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FDA ap­proves Lex­i­con’s heart-fail­ure drug af­ter de­feat in di­a­betes

The FDA on Friday approved Lexicon’s heart failure drug sotagliflozin following a string of setbacks for the pharma company, including an FDA rejection in diabetes and the loss of a development deal with Sanofi.

The dual SGLT1 and SGLT2 inhibitor will be marketed as Inpefa and is a once-daily tablet. It’s been approved to reduce the risk of cardiovascular death and heart failure-related hospitalization or urgent visits in adults with heart failure or type 2 diabetes mellitus, chronic kidney disease, and other cardiovascular risk factors. The label spans the range of left ventricular ejection fraction, including preserved ejection fraction and reduced ejection fraction, as well as patients with or without diabetes, Lexicon said Friday.

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Eu­ro­pean Com­mis­sion to re­ceive few­er Pfiz­er-BioN­Tech vac­cine dos­es un­der amend­ed con­tract

The European Commission has made a few changes to its vaccine contract with Pfizer and BioNTech, reducing the dose volume while extending the delivery timeline to cope with “evolving public health needs.”

The Commission previously struck a contract in May 2021 for 900 million doses, with the option to purchase another 900 million. Of those, 450 million were expected to be delivered in 2023, though an amendment now calls for fewer doses. While neither the Commission nor Pfizer and BioNTech have revealed an exact amount, an unnamed source told Reuters that the amendment reduces the remaining expected doses by about a third.

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