Scoop: Tur­ing CEO and Shkre­li al­ly Ron Tilles is out as CEO, R&D chief Sali­nas takes the helm and board vote looms

Eliseo Sali­nas

Regime change of some sort is un­der­way at the con­tro­ver­sial Tur­ing Phar­ma­ceu­ti­cals.

Tipped off on Fri­day that CEO and co-founder Ron Tilles — a close as­so­ciate of for­mer Tur­ing CEO Mar­tin Shkre­li — was leav­ing the top post, the biotech con­firmed to End­points News Sun­day evening that Tilles is be­ing re­placed by chief sci­en­tif­ic of­fi­cer Eliseo Sali­nas. Here’s the state­ment:

“Tur­ing Phar­ma­ceu­ti­cals has ap­point­ed Dr. Eliseo Sali­nas, MD, MSc as in­ter­im CEO. Dr. Sali­nas will guide Tur­ing as it moves for­ward to max­i­mize Dara­prim’s suc­cess as the pri­ma­ry al­ter­na­tive for the treat­ment of tox­o­plas­mo­sis in com­bi­na­tion with a sul­fon­amide, and to ad­vance the promis­ing pipeline of new com­pounds for se­vere par­a­sitic in­fec­tions, while Mr. Tilles will re­main a mem­ber of Tur­ing’s board.”

A source close to the com­pa­ny tells me that there’s a strug­gle un­der­way now for con­trol of the Tur­ing board. An “ex­tra­or­di­nary” board meet­ing – not the an­nu­al – is slat­ed for May 10 when Zsol­ta Lavotha for­mer­ly of Orexo AB and Richard J Berman of Cal­adrius Bio­sciences will be pro­posed as new board mem­bers by the new CEO.

A spokesman for Tur­ing con­firmed the up­com­ing meet­ing and the nom­i­na­tions. He added that Tilles stepped down from the CEO spot ear­li­er this month.

Tur­ing played a big role in fo­cus­ing Con­gress and much of the pub­lic on phar­ma­ceu­ti­cal price goug­ing, af­ter then CEO and co-founder Shkre­li trig­gered a coast-to-coast up­roar in 2015 over his de­ci­sion to boost the price of Dara­prim — an old and once much cheap­er ther­a­py — by more than 5000%. Shkre­li, who had al­so co-found­ed Retrophin (which sued him) with Tilles and ac­quired Kalo­Bios (which grad­u­al­ly shed any con­nec­tion to him) was lat­er ar­rest­ed on fed­er­al se­cu­ri­ties fraud charges re­lat­ed to his for­mer hedge funds and the way he man­aged the com­pa­ny cash at Retrophin.

Tilles, Shkre­li’s close con­fed­er­ate, was left run­ning the show on an in­ter­im ba­sis for the last 17 months. De­spite be­ing drug be­fore a Con­gres­sion­al com­mit­tee — where he pled the Fifth — Shkre­li and Tur­ing nev­er did back down from their big price in­crease, which is en­tire­ly le­gal and com­plete­ly con­tro­ver­sial. Shkre­li, who re­neged on ini­tial promis­es to cut the price, lat­er de­light­ed in taunt­ed his crit­ics and claim­ing that the price should have been raised even high­er.

Sali­nas has a le­git­i­mate rep­u­ta­tion in the in­dus­try. He was the for­mer R&D chief at Elan at one point and went on to run re­search at Stem­Cells and Rel­ma­da.

We’ll have more on the saga, in­clud­ing news about the up­com­ing Shkre­li tri­al in Man­hat­tan in June, as it comes in.

A New Fron­tier: The In­ner Ear

What happens when a successful biotech venture capitalist is unexpectedly diagnosed with a chronic, life-disrupting vertigo disorder? Innovation in neurotology.

That venture capitalist was Jay Lichter, Ph.D., and after learning there was no FDA-approved drug treatment for his condition, Ménière’s disease, he decided to create a company to bring drug development to neurotology. Otonomy was founded in 2008 and is dedicated to finding new drug treatments for the hugely underserved community living with balance and hearing disorders. Helping patients like Jay has been the driving force behind Otonomy, a company heading into a transformative 2020 with three clinical trial readouts: Phase 3 in Ménière’s disease, Phase 2 in tinnitus, and Phase 1/2 in hearing loss. These catalysts, together with others in the field, highlight the emerging opportunity in neurotology.
Otonomy is leading the way in neurotology
Neurotology, or the treatment of inner ear neurological disorders, is a large and untapped market for drug developers: one in eight individuals in the U.S. have moderate-to-severe hearing loss, tinnitus or vertigo disorders such as Ménière’s disease.1 With no FDA-approved drug treatments available for these conditions, the burden on patients—including social anxiety, lower quality of life, reduced work productivity, and higher rates of depression—can be significant.2, 3, 4

Af­ter 4 years of furor, the FTC and New York state ac­cuse Mar­tin Shkre­li of run­ning a drug mo­nop­oly. And this time they plan to squash it

Pharma bro Martin Shkreli was jailed, publicly pilloried and forced to confront some lawmakers in Washington riled by his move to take an old generic and move the price from $17.50 per pill to $750. But through 4 years of controversy and public revulsion, his company never backed away from the price — left uncontrolled by a laissez faire federal policy on a drug’s cost.

Now the FTC and the state of New York plan to pry his fingers off the drug once and for all and open it up to some cheap competition.

Patrik Jonsson, the president of Lilly Bio-Medicines

Who knew? Der­mi­ra’s board kept watch as its stock price tracked Eli Lil­ly’s se­cret bid­ding on a $1.1B buy­out

In just 8 days, from December 6 to December 14, the stock jumped from $7.88 to $12.70 — just under the initial $13 bid. There was no hard news about the company that would explain a rise like that tracking closely to the bid offer, raising the obvious question of whether insider info has leaked out to traders.

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Short at­tack­er Sahm Ad­ran­gi draws crosshairs over a fa­vorite of Sanofi’s new CEO — with PhII da­ta loom­ing

Sahm Adrang Kerrisdale

Kerrisdale chief Sahm Adrangi took a lengthy break from his series of biotech short attacks after his chief analyst in the field pulled up stakes and went solo. But he’s making a return to drug development this morning, drawing crosshairs over a company that’s one of new Sanofi CEO Paul Hudson’s favorite collaborators.

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UP­DAT­ED: Ac­celeron of­fers thumbs up on a PhII suc­cess for would-be block­buster drug — and shares rock­et up

There’s no public data yet, but Acceleron $XLRN says that its first major trial readout of 2020 is a success.

In a Phase II study of 106 patients with pulmonary arterial hypertension (PAH), Acceleron’s experimental drug sotatercept hit its primary endpoint: a significant reduction in pulmonary vascular resistance. The drug also met three different secondary endpoints, including the 6-minute walking test.

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Civi­ca and Blue Cross Blue Shield launch new ven­ture to low­er gener­ic prices

Five years after Martin Shkreli put a smug face to the volatile prices companies can charge even for generic drugs, payers and governments are coming up with outside-the-box solutions.

The latest fix is a new venture from the Blue Cross Blue Shield Association, 18 of its members and Civica, the generics company founded in 2018 by hospitals fed up with high prices for drugs that had long-since lost patent protection. While Civica focused on drugs that hospitals purchased, the new company will aim to lower prices on drugs that, like Shkreli’s Daraprim, are purchased by individuals.

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Merck Invests in State-Of-The-Art Biotech Development Facility in Switzerland

Mer­ck KGaA match­es lofty R&D goals with €250M in­vest­ment in­to a new clin­i­cal man­u­fac­tur­ing site in Switzer­land

As Merck KGaA strives to prove itself as a capable biopharma R&D player, it has begun construction on a €250 million facility dedicated to developing and manufacturing drugs for use in clinical trials.

The German drugmaker chose a location at Corsier-sur-Vevey, Switzerland, where it already has a commercial manufacturing site, in order to “bridge together research and manufacturing.”

“This investment in the Merck Biotech Development Center reflects our commitment to speed up the availability of new medicines for patients in need, and confirms the importance of Switzerland as our prime hub for the manufacturing of biotech medicines,” CEO Stefan Oschmann said at the groundbreaking ceremony, according to a statement.

Breast can­cer ap­proval in tow, As­traZeneca, Dai­ichi armed an­ti­body scores in key gas­tric can­cer study

AstraZeneca kicked off Monday with a flurry of good news. Apart from unveiling positive results on its stroke trial testing its clot-fighter Brilinta, and welcoming its experimental IL-23 inhibitor brazikumab back from Allergan — the British drugmaker also disclosed some upbeat gastric cancer data on its HER2-positive oncology therapy it is collaborating on with Daiichi Sankyo.

Buoyed by the performance of its oncology drugs, last March AstraZeneca chief Pascal Soriot bet big to partner with Daiichi on the cancer drug, with $1.35 billion upfront in a deal worth up to roughly $7 billion. Roughly 8 months later, as 2019 drew to a close, the FDA swiftly approved the drug — trastuzumab deruxtecan — for use in breast cancer, months ahead of the expected decision date.

Sor­ren­to shrugs off an anony­mous pri­vate eq­ui­ty group’s $1B of­fer to buy the com­pa­ny

San Diego-based Sorrento Therapeutics isn’t going the M&A route — at least not today.

The biotech caused quite a stir when it put out word a few weeks ago that an unidentified private equity group was bidding a billion dollars-plus for the company. The news drove a quick spike in the company’s share price as investors hooked up for the ride — that didn’t happen.

The update sparked a 5% drop in the share price $SRNE ahead of the bell. It’s now trading just above $4, without any evidence that the $7 price looked like it was firm.