Rais­ing a record $668M in new fund, Fore­site sets sights on a tech-dri­ven port­fo­lio

Af­ter build­ing up its tech tal­ent with the re­cruit­ment of Sil­i­con Val­ley’s fa­vorite CSO Vikram Ba­jaj, Fore­site Cap­i­tal has closed $668 mil­lion for its fourth and largest fund — and it’s set­ting aside a de­cent chunk of that cash for com­pa­nies com­bin­ing da­ta sci­ence with life sci­ences.

Jim Tanan­baum

The fo­cus of the fund should come as no sur­prise, con­sid­er­ing Fore­site’s re­cent in­vest­ments and its move to re­cruit Ba­jaj last year. Ba­jaj came to Fore­site from the Il­lu­mi­na spin­out Grail, which is best known for rais­ing $1 bil­lion in less than two years (and for its C suite of ex-Googlers). He al­so is a co-founder and for­mer CSO for Google’s life sci­ence start­up Ver­i­ly.

When Ba­jaj joined in No­vem­ber, he told me he was par­tic­u­lar­ly in­ter­est­ed in the com­pa­nies that com­bine da­ta sci­ence and hu­man bi­ol­o­gy, which is sort of his do­main. On top of his Ver­i­ly roots, Ba­jaj al­so led lab­o­ra­to­ry and da­ta sci­ence teams at Grail. And as a for­mer aca­d­e­m­ic re­searcher, Ba­jaj and his col­lab­o­ra­tors have de­vel­oped nan­otech and oth­er tools that were lat­er com­mer­cial­ized by star­tups.

Ba­jaj said per­son­al­ized med­i­cine — with the help of da­ta sci­ence — is on­ly get­ting start­ed. He thinks it’s a good time to en­ter this space as an in­vestor, with cash to move the right tech­nolo­gies for­ward.

“I think we’re poised for mas­sive change as se­quenc­ing costs go down and med­i­cine be­comes more pre­cise as a re­sult of this ex­plo­sion of da­ta,” Ba­jaj said.

Fore­site, which was found­ed in 2011, now has $2 bil­lion in as­sets un­der man­age­ment, and it ranked pret­ty high in our most re­cent list of 100 top VCs in biotech. Com­ing in at num­ber 12, Fore­site did 23 deals in 2017. That in­cludes chip­ping in $15 mil­lion for Grail’s syn­di­cate and al­most $17 mil­lion for Col­or Ge­nomics. And in Fore­site’s port­fo­lio are the likes of 10x Ge­nomics, Intar­cia Ther­a­peu­tics, and Aerie Phar­ma­ceu­ti­cals.

Phil Kal­los

Fore­site has been work­ing to beef up its da­ta sci­ence and ma­chine learn­ing ex­per­tise in re­cent years, the com­pa­ny said. At the same time as Ba­jaj’s re­cruit­ment, Fore­site al­so hired Phil Kal­los, a new di­rec­tor of en­gi­neer­ing. A com­pa­ny spokesper­son said Fore­site had made “sev­er­al” per­son­nel ad­di­tions to fu­el their ef­forts in an­a­lyt­ics and ma­chine learn­ing to “ac­cel­er­ate the com­pa­ny’s re­search and mod­el­ing ef­forts.”

Fore­site’s founder and CEO Jim Tanan­baum says they’re build­ing ex­per­tise that will be crit­i­cal in mak­ing in­vest­ment de­ci­sions down the road.

“We not on­ly pro­vide cap­i­tal, but al­so a mul­ti­dis­ci­pli­nary team of sci­en­tists, clin­i­cians, an­a­lysts and en­gi­neers who col­lab­o­rate to seek the best da­ta-dri­ven de­ci­sions. The abil­i­ty to in­gest and de­rive mean­ing from mas­sive amounts of com­plex in­for­ma­tion is a crit­i­cal suc­cess fac­tor in health­care in­vest­ing,” Tanan­baum said in a state­ment. “We’re pleased by the con­fi­dence and en­thu­si­asm our Fund IV in­vestors have demon­strat­ed in the Fore­site Cap­i­tal team, as well as the progress made by our rapid­ly de­vel­op­ing port­fo­lio.”

Im­age: Vikram Ba­jaj. Elis­a­beth Fall, Fall­Fo­to via Fore­site

Novotech CEO Dr. John Moller

Novotech CRO Award­ed Frost & Sul­li­van Best Biotech CRO Asia-Pa­cif­ic 2019

Known in the in­dus­try as the Asia-Pa­cif­ic CRO, Novotech is now lead CRO ser­vices provider for the grow­ing num­ber of in­ter­na­tion­al biotechs se­lect­ing the re­gion for their stud­ies.

Re­flect­ing this Asia-Pa­cif­ic growth, Novotech staff num­bers are up 20% since De­cem­ber 2018 to 600 in-house clin­i­cal re­search peo­ple across a full range of ser­vices, across the re­gion.

Novotech’s ca­pa­bil­i­ties have been rec­og­nized by an­a­lysts like Frost & Sul­li­van, most re­cent­ly with the pres­ti­gious Asia-Pa­cif­ic CRO Biotech of the year award for best prac­tices in clin­i­cal re­search for biotechs for the fifth year. See oth­er awards here.

Fol­low­ing news of job cuts in Eu­ro­pean R&D ops, Sanofi con­firms it’s of­fer­ing US work­ers an 'ear­ly ex­it'

Ear­li­er in the week we learned that Sanofi was bring­ing out the bud­get ax to trim 466 R&D jobs in Eu­rope, re­tool­ing its ap­proach to car­dio as re­search chief John Reed beefed up their work in can­cer and gene ther­a­pies. And we’re end­ing the week with news that the phar­ma gi­ant has al­so been qui­et­ly re­duc­ing staff in the US, tar­get­ing hun­dreds of jobs as the com­pa­ny push­es vol­un­tary buy­outs with a fo­cus on R&D sup­port ser­vices.

Evotec CEO Werner Lanthaler, File Photo

Ox­ford, Evotec ramp up LAB10x with AI ex­perts at Sen­syne — fo­cused on biotech spin­outs

Ox­ford is al­ly­ing it­self with Evotec and ar­ti­fi­cial in­tel­li­gence out­fit Sen­syne Health to ramp up some new biotech spin­outs while look­ing to “ac­cel­er­ate da­ta-dri­ven drug dis­cov­ery and de­vel­op­ment.”

The big idea here is that Ox­ford sci­en­tists — some of the best drug hunters in the world — can uti­lize Sen­syne’s AI plat­form for their work, re­ly­ing on the chemists and hands-on de­vel­op­ers at Evotec to push ahead to a crit­i­cal proof of con­cept mo­ment. And they’ll do it through a project leader called LAB10x, which gets £5 mil­lion over the next three years to fund the work.

How small- to mid-sized biotechs can adopt pa­tient cen­tric­i­ty in their on­col­o­gy tri­als

By Lucy Clos­sick Thom­son, Se­nior Di­rec­tor of On­col­o­gy Pro­ject Man­age­ment, Icon

Clin­i­cal tri­als in on­col­o­gy can be cost­ly and chal­leng­ing to man­age. One fac­tor that could re­duce costs and re­duce bar­ri­ers is har­ness­ing the pa­tient voice in tri­al de­sign to help ac­cel­er­ate pa­tient en­roll­ment. Now is the time to adopt pa­tient-cen­tric strate­gies that not on­ly fo­cus on pa­tient needs, but al­so can main­tain cost ef­fi­cien­cy.

Why would the FDA ap­prove an­oth­er con­tro­ver­sial drug to spur a woman’s li­bido with these da­ta? And why no ex­pert pan­el re­view?

AMAG Pharmaceuticals’ newly approved drug for spurring women’s sexual desire may never make much money, but it’s a big hit at sparking media attention.

The therapy — Vyleesi (bremelanotide) — got the green light from regulators on Friday evening, swiftly lighting up a range of stories around the world, from The New York Times to The Guardian. Several headlines inevitably referred to it as the “female Viagra,” invoking Pfizer’s old erectile dysfunction blockbuster.

But the two drugs have little in common.

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Which top 10 big phar­mas have the most to gain — or lose — over the next 5 years?

When Evaluate Pharma crunched the likely drug sales numbers for the big 10, 2 stood out. 

Takeda, with its big Shire buyout under its belt, is set to almost double its worldwide sales record for 2018 over 5 years, putting it in the big 10 — the 9th spot, to be exact — which is exactly where CEO Christophe Weber wants to be. 

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Roger Perlmutter. Merck via webcast

'Our lega­cy mat­ter­s': Mer­ck maps out Keytru­da king­dom while spot­light­ing ad­vances in vac­cines, hos­pi­tal care

“You can for the mo­ment stop tak­ing notes. You can put down your pens and your pad. I have no slides. I have no sub­stan­tive da­ta. I have no pitch.”

So be­gan Roger Perl­mut­ter’s brief ap­pear­ance on­stage at Mer­ck’s first in­vestor day in five years, where he dived in­to the com­pa­ny’s his­to­ry dat­ing back to 1933. The first em­ploy­ees at Mer­ck Re­search Lab­o­ra­to­ries, hand­picked by founder George W. Mer­ck, were crit­i­cal to Mer­ck’s abil­i­ty to achieve clin­i­cal and com­mer­cial suc­cess.

Eli Casdin, Casdin Capital

Eli Cas­din backs Codex­is' plat­form tech with $50M eq­ui­ty buy

About a month af­ter Codex­is notched a deal with No­var­tis $NVS, the Cal­i­for­nia com­pa­ny $CDXS on Thurs­day said long-time in­vestor Cas­din Cap­i­tal is putting up $50 mil­lion in a pri­vate place­ment, which puts the New York-based in­vest­ment firm in con­trol of more than 5% of the pro­tein en­gi­neer­ing play­er’s stock.

Eli Cas­din start­ed his epony­mous in­vest­ment firm in 2012 and dates his re­la­tion­ship with Codex­is back to at least a decade. About three years ago, Cas­din Cap­i­tal be­gan in­vest­ing in the in­dus­tri­al biotech com­pa­ny, af­ter it piv­ot­ed its fo­cus to the life sci­ences — un­der the aus­pices of new chief John Nicols — away from the en­er­gy in­dus­try.

John Reed at JPM 2019. Jeff Rumans for Endpoints News

Sanofi's John Reed con­tin­ues to re­or­ga­nize R&D, cut­ting 466 jobs while boost­ing can­cer, gene ther­a­py re­search

The R&D reorganization inside Sanofi is continuing, more than a year after the pharma giant brought in John Reed to head the research arm of the Paris-based company.

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