Ed Zhang (Overland)

'S­cale and speed': Hill­house puts its weight be­hind Chi­na start­up eye­ing cut­ting-edge tech from around the world

In the rel­a­tive­ly small but hefty world of biotechs work­ing to bring new drugs from the West to Chi­na, Hill­house Cap­i­tal has been an ac­tive, if cau­tious, in­vestor. Not on­ly did it bet big on BeiGene ear­ly, it al­so co-led Ever­est Med­i­cines’ mon­ster $310 mil­lion round to bankroll com­mer­cial launch­es ear­li­er this year.

But now it’s go­ing all-in with its own start­up — and a twist to the mod­el.

Hua Mu

Ed Zhang and Hua Mu, ven­ture part­ners who joined the firm ear­ly this year, are the co-founders of Over­land Phar­ma­ceu­ti­cals. Oth­er than the ini­tial fo­cus on on­col­o­gy, au­toim­mune dis­eases and car­diometa­bol­ic dis­or­ders, the duo isn’t dis­clos­ing much about the com­pa­ny yet, al­though it’s clear that Hill­house, which had $10.6 bil­lion to spend for its last fund, isn’t hold­ing any mon­ey back when it comes to fund­ing deals and woo­ing tal­ent.

While the set­up echoes what Per­cep­tive Ad­vi­sors is do­ing through Lian­Bio, Over­land says it’s eye­ing a dif­fer­ent mar­ket by tar­get­ing plat­form plays that in­volve ad­vanced tech­nolo­gies. Think an­ti­body-drug con­ju­gates, cell ther­a­py, RNAi and more.

“From a part­ner­ing per­spec­tive, I would def­i­nite­ly say we’re more flex­i­ble than oth­er typ­i­cal in-li­cens­ing mod­els,” said Ed Zhang, the CBO and COO, for whom “scale and speed” is a mantra.

That means opt­ing for co-de­vel­op­ment rather than sim­ple li­cens­ing, cre­at­ing spin­outs or joint ven­tures to col­lab­o­rate on mul­ti­ple ear­ly-stage as­sets, or even con­sid­er­ing eq­ui­ty in­vest­ment in their part­ner com­pa­nies.

Sta­tioned right in Boston, Zhang will lever­age the net­works he’s de­vel­oped over the last two decades across mul­ti­ple bio­phar­ma roles. Mean­while, Mu, the in­ter­im CEO and CMO, will split his time be­tween Seat­tle and the two Chi­na of­fices in Bei­jing and Shang­hai.

Pi­o­neers like Zai Lab and Ever­est, Mu not­ed, have “set a very high bar” for Chi­na-fac­ing com­pa­nies look­ing to bridge the in­no­va­tion gap.

“In the past, I think the fo­cus was more on the ex­e­cu­tion, op­er­a­tional fu­tures, right, be­cause those as­sets had al­ready mit­i­gat­ed risk be­fore,” Mu said, giv­ing the ex­am­ple of Ze­ju­la, which Zai Lab li­censed from Tesaro when it was in Phase III. “The key was how to ex­e­cute the pro­gram, de­vel­op­ment and reg­is­tra­tion in Chi­na.”

At a time when Chi­nese in­ter­est in cut­ting-edge drugs and tech­nolo­gies runs high, thanks in part to reg­u­la­to­ry re­forms and free flow of VC cash, that’s no longer enough. For new­com­ers, the cur­rent land­scape re­quires them to work more close­ly with col­lab­o­ra­tors, in­te­grat­ing lo­cal ex­per­tise with glob­al knowl­edge — a “much more so­phis­ti­cat­ed and de­mand­ing” ap­proach. But it’s al­so the kind of chal­lenge that Over­land was built to meet.

By tap­ping in­to Hill­house’s glob­al net­work and biotech ecosys­tem in Asia, the com­pa­ny promis­es to put to­geth­er the de­vel­op­ment, man­u­fac­tur­ing and com­mer­cial know-how that would con­vince top-notch de­vel­op­ers to en­trust Over­land with their as­sets.

“In­vest­ing or part­ner­ing with those tech­nol­o­gy plat­form com­pa­nies re­quire a dif­fer­ent lev­el of cap­i­tal re­sources and ex­per­tise in those li­censed ter­ri­to­ries,” Zhang said. “But ac­tu­al­ly that is by de­sign. That is our fo­cus.”

Biotech Half­time Re­port: Af­ter a bumpy year, is biotech ready to re­bound?

The biotech sector has come down firmly from the highs of February as negative sentiment takes hold. The sector had a major boost of optimism from the success of the COVID-19 vaccines, making investors keenly aware of the potential of biopharma R&D engines. But from early this year, clinical trial, regulatory and access setbacks have reminded investors of the sector’s inherent risks.

RBC Capital Markets recently surveyed investors to take the temperature of the market, a mix of specialists/generalists and long-only/ long-short investment strategies. Heading into the second half of the year, investors mostly see the sector as undervalued (49%), a large change from the first half of the year when only 20% rated it as undervalued. Around 41% of investors now believe that biotech will underperform the S&P500 in the second half of 2021. Despite that view, 54% plan to maintain their position in the market and 41% still plan to increase their holdings.

How to col­lect and sub­mit RWD to win ap­proval for a new drug in­di­ca­tion: FDA spells it out in a long-await­ed guid­ance

Real-world data is messy. There can be differences in the standards used to collect different types of data, differences in terminologies and curation strategies, and even in the way data is exchanged.

While acknowledging this somewhat controlled chaos, the FDA is now explaining how biopharma companies can submit study data derived from real-world data (RWD) sources in applicable regulatory submissions, including new drug indications.

Endpoints Premium

Premium subscription required

Unlock this article along with other benefits by subscribing to one of our paid plans.

David Livingston (Credit: Michael Sazel for CeMM)

Renowned Dana-Far­ber sci­en­tist, men­tor and bio­phar­ma ad­vi­sor David Liv­ingston has died

David Livingston, the Dana-Farber/Harvard Med scientist who helped shine a light on some of the key molecular drivers of breast and ovarian cancer, died unexpectedly last Sunday.

One of the senior leaders at Dana-Farber during his nearly half century of work there, Livingston was credited with shedding light on the genes that regulate cell growth, with insights into inherited BRCA1 and BRCA2 mutations that helped lay the scientific foundation for targeted therapies and earlier detection that have transformed the field.

David Lockhart, ReCode Therapeutics CEO

Pfiz­er throws its weight be­hind LNP play­er eye­ing mR­NA treat­ments for CF, PCD

David Lockhart did not see the meteoric rise of messenger RNA and lipid nanoparticles coming.

Thanks to the worldwide fight against Covid-19, mRNA — the genetic code that can be engineered to turn the body into a mini protein factory — and LNPs, those tiny bubbles of fat carrying those instructions, have found their way into hundreds of millions of people. Within the biotech world, pioneers like Alnylam and Intellia have demonstrated just how versatile LNPs can be as a delivery vehicle for anything from siRNA to CRISPR/Cas9.

Endpoints News

Keep reading Endpoints with a free subscription

Unlock this story instantly and join 120,300+ biopharma pros reading Endpoints daily — and it's free.

Leen Kawas (L) has resigned as CEO of Athira and will be replaced by COO Mark Litton

Ex­clu­sive: Athi­ra CEO Leen Kawas re­signs af­ter in­ves­ti­ga­tion finds she ma­nip­u­lat­ed da­ta

Leen Kawas, CEO and founder of the Alzheimer’s upstart Athira Pharma, has resigned after an internal investigation found she altered images in her doctoral thesis and four other papers that were foundational to establishing the company.

Mark Litton, the company’s COO since June 2019 and a longtime biotech executive, has been named full-time CEO. Kawas, meanwhile, will no longer have ties to the company except for owning a few hundred thousand shares.

Endpoints Premium

Premium subscription required

Unlock this article along with other benefits by subscribing to one of our paid plans.

Sen. Richard Durbin (D-IL, foreground) and Sen. Richard Blumenthal (D-CT) (Patrick Semansky/AP Images)

Sen­a­tors back FDA's plan to re­quire manda­to­ry pre­scriber ed­u­ca­tion for opi­oids

Three Senate Democrats are backing an FDA plan to require mandatory prescriber education for opioids as overdose deaths have risen sharply over the past decade, with almost 97,000 American opioid-related overdose deaths in the past year alone.

While acknowledging a decline in overall opioid analgesic dispensing in recent years, the FDA said it’s reconsidering the need for mandatory prescriber training through a REMS given the current situation with overdoses, and is seeking input on the aspects of the opioid crisis that mandatory training could potentially mitigate.

Bris­tol My­ers pledges to sell its Ac­celeron shares as ac­tivist in­vestors cir­cle Mer­ck­'s $11.5B buy­out — re­port

Just as Avoro Capital’s campaign to derail Merck’s proposed $11.5 billion buyout of Acceleron gains steam, Bristol Myers Squibb is leaning in with some hefty counterweight.

The pharma giant is planning to tender its Acceleron shares, Bloomberg reported, which add up to a sizable 11.5% stake. Based on the offer price, the sale would net Bristol Myers around $1.3 billion.

To complete its deal, Merck needs a majority of shareholders to agree to sell their shares.

Boost­er bo­nan­za: FDA en­dors­es 'mix-and-match' scheme, and Mod­er­na and J&J too

The FDA late Wednesday signed off on authorizing the use of heterologous — or what FDA calls a “mix and match” of a primary vaccine series and different booster doses — for all currently available Covid-19 vaccines, in addition to separately authorizing Moderna and J&J boosters.

On the mix-and-match approach, which FDA officials insisted isn’t too confusing in a press conference, the agency offered the example of an 18-year-old who received the J&J shot at least two months ago and may now receive a single booster of the J&J, a half dose of the Moderna, or the Pfizer-BioNTech booster.

No­vo CEO Lars Fruer­gaard Jør­gensen on R&D risk, the deal strat­e­gy and tar­gets for gen­der di­ver­si­ty

 

I kicked off our European R&D summit last week with a conversation involving Novo Nordisk CEO Lars Fruergaard Jørgensen. Novo is aiming to launch a new era of obesity management with a new approval for semaglutide. And Jørgensen had a lot to say about what comes next in R&D, how they manage risk and gender diversity targets at the trendsetting European pharma giant.

John Carroll: I’m here with Lars Jørgensen, the CEO of Novo Nordisk. Lars, it’s been a really interesting year so far with Novo Nordisk, right? You’ve projected a new era of growing sales. You’ve been able to expand on the GLP-1 franchise that was already well established in diabetes now going into obesity. And I think a tremendous number of people are really interested in how that’s working out. You have forecast a growing amount of sales. We don’t know specifically how that might play out. I know a lot of the analysts have different ideas, how those numbers might play out, but that we are in fact embarking on a new era for Novo Nordisk in terms of what the company’s capable of doing and what it’s able to do and what it wants to do. And I wanted to start off by asking you about obesity in particular. Semaglutide has been approved in the United States for obesity. It’s an area of R&D that’s been very troubled for decades. There have been weight loss drugs that have come along. They’ve attracted a lot of attention, but they haven’t actually ever gained traction in the market. My first question is what’s different this time about obesity? What is different about this drug and why do you expect it to work now whereas previous drugs haven’t?

Endpoints Premium

Premium subscription required

Unlock this article along with other benefits by subscribing to one of our paid plans.