Seat­tle Ge­net­ics throws in the tow­el on $2B Im­munomedics deal, CEO and CSO axed in set­tle­ment

Be­hzad Ag­haz­adeh, ven­Bio

The ac­tivist in­vest­ment group ven­Bio has brought down a high pro­file, $2 bil­lion col­lab­o­ra­tion deal — with $300 mil­lion in up front cash — be­tween Seat­tle Ge­net­ics and Im­munomedics. And the peace agree­ment they signed is tied to the res­ig­na­tions of the CEO and CSO at Im­munomedics, who led the coun­ter­at­tack against ven­Bio, which now has to­tal con­trol of the biotech.

A few months ago the two com­pa­nies tied up in a deal that gave Seat­tle Ge­net­ics glob­al rights to Im­munomedics’ IM­MU-132, putting them in charge of a late-stage study of the drug for metasta­t­ic triple neg­a­tive breast can­cer while look­ing for an ac­cel­er­at­ed ap­proval.

Clay Sie­gall, Seat­tle Ge­net­ics

But ven­Bio fought back, hard, say­ing the op­tion deal gave Seat­tle Ge­net­ics the right to ac­quire a big chunk of Im­munomedics’ stock at a deep dis­count, de­stroy­ing share­hold­ers val­ue in a “bla­tant and shame­ful ma­neu­ver by the cur­rent Board and man­age­ment to… en­trench them­selves at the ex­pense of stock­hold­ers’ best in­ter­ests.” And the group tar­get­ed CEO Cyn­thia Sul­li­van along with her hus­band and Im­munomedics chief sci­en­tif­ic of­fi­cer David Gold­en­berg for en­rich­ing them­selves at the ex­pense of in­vestors.

In ear­ly March, ven­Bio won board seats for four of their can­di­dates, and with the deal yet to close, promised a thor­ough re­view. They sought an in­junc­tion to pause the deal, and to­day Seat­tle Ge­net­ics is throw­ing in the tow­el and walk­ing away. The war­ring par­ties agreed to set­tle their dis­pute, while Seat­tle Ge­net­ics holds on to 3 mil­lion shares of Im­munomedics com­mon stock and a war­rant to pur­chase an ad­di­tion­al 8.7 mil­lion shares at $4.90 per share ex­er­cis­able un­til the end of this year.

Sul­li­van and Gold­en­berg have both agreed to re­sign from their po­si­tions at the com­pa­ny, ac­cord­ing to an 8-K filed to­day. And they will get $3.4 mil­lion and $3.6 mil­lion re­spec­tive­ly, as out­lined in their em­ploy­ment agree­ments. Gold­en­berg re­mains on the board. And ven­Bio will get re­im­bursed by the com­pa­ny for its le­gal fees in the bat­tle. CFO Michael R. Garone has been named as the in­ter­im CEO un­til they find a per­ma­nent re­place­ment for the post.

In­vestors seem to like the way this has turned out, bid­ding up Im­munomedics’ shares by 20%. But Seat­tle Ge­net­ics CEO Clay Sie­gall didn’t sound hap­py in his good­bye note.

“The Im­munomedics trans­ac­tion would have ef­fec­tive­ly uti­lized our sub­stan­tial ex­per­tise in an­ti­body-drug con­ju­gate (ADC) de­vel­op­ment to ad­vance IM­MU-132 for pa­tients in need,” said Sie­gall in a state­ment. “How­ev­er, due to sig­nif­i­cant de­lays and lack of progress to­wards clos­ing the deal, we are turn­ing our full at­ten­tion and re­sources to our promis­ing pipeline and the sub­stan­tial op­por­tu­ni­ties in front of us, in­clud­ing the up­com­ing topline da­ta read­out from the AD­CETRIS ECH­E­LON-1 tri­al and on­go­ing or planned piv­otal tri­als of vadas­tux­imab talirine (SGN-CD33A) and en­for­tum­ab ve­dotin (ASG-22ME).”

UP­DAT­ED: A small, ob­scure biotech just won big with their IPO. In this mar­ket. Are you kid­ding me?

How could a small, largely unknown biotech that emerged from stealth mode just months ago with early-stage cancer programs jump onto Wall Street in the middle of a Category 6 financial hurricane and sail through with a $165 million IPO?

And what does that mean for the rest of the industry waiting to see just how much damage global lockdowns will wreak on clinical development?

The biotech is a company called Zentalis. The crew there nabbed an $85 million crossover round late last year — notably waiting 5 years before waving the numbers around to attract attention, according to my read of a FierceBiotech story. Perceptive joined in, but the syndicate was not in general the kind of marquee affair that gets tongues wagging.

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Gilead CEO Daniel O'Day attends a meeting with the President and other biopharma leaders at the White House on March 2, 2020 (AP Photo)

Ramp­ing up glob­al pro­duc­tion of remde­sivir, Gilead CEO Dan O’Day de­tails plans to dis­trib­ute 1.5M dos­es to fight Covid-19 — for free

Gilead is still some days away from turning the card on its first round of data on remdesivir’s ability to fight severe cases of Covid-19, but the big biotech is ramping up an emergency supply of a million courses of therapy as it starts free distribution of the drug to tens of thousands of patients under their compassionate use and expanded access program as well as clinical trials.

In his latest open letter posted over the weekend, Gilead CEO Dan O’Day outlined how the company has been successful in cutting production time on remdesivir while repurposing some of their own facilities and turning to contract manufacturers to build a near-term supply of 1.5 million doses. They are still working on efficacy and dosing, but that supply could cover 140,000 courses of treatment. That supply, he added, would be more widely available following a potential approval.

Bob Nelsen at the Milken Institute Global Conference on April 29, 2019 in Beverly Hills, California. (Photo by Michael Kovac/Getty Images)

ARCH chief Bob Nelsen has $1.5B to prove 2 sim­ple points: ‘We’re in the most in­no­v­a­tive time ever’ and in­vestors are stay­ing

ARCH co-founder and managing director Bob Nelsen has a well known yen for the home run swing, betting big on potentially transformative meds and tech and the biotech teams he helps bring together. He thrives and bleeds on the cutting edge. And now Nelsen and the ARCH group have debuted 2 big funds to prove that this is the time for the best of biotech to shine — deadly pandemic be damned.

Two new funds, ARCH Venture Fund X and ARCH Venture Fund X Overage, gathered a combined $1.46 billion. And that’s a record. ARCH Venture Fund IX and ARCH Venture Fund IX Overage closed in 2016 with a combined $1.1 billion. ARCH Venture Fund VIII and ARCH Venture Fund VIII Overage closed in 2014 with a combined $560 million.

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Have a new drug that promis­es to fight Covid-19? The FDA promis­es fast ac­tion but some de­vel­op­ers aren't hap­py

After providing an emergency approval to use malaria drugs against coronavirus with little actual evidence of their efficacy or safety in that setting, the FDA has already proven that it has set aside the gold standard when it comes to the pandemic. And now regulators have spelled out a new approach to speeding development that promises immediate responses in no uncertain terms — promising a program offering the ultimate high-speed pathway to Covid-19 drug approvals.

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Once fu­ri­ous over No­var­tis’ da­ta ma­nip­u­la­tion scan­dal, the FDA now says it’s noth­ing they need to take ac­tion on

Back in the BP era — Before Pandemic — the FDA ripped Novartis for its decision to keep the agency in the dark about manipulated data used in its application for Zolgensma while its marketing application for the gene therapy was under review.

Civil and criminal sanctions were being discussed, the agency noted in a rare broadside at one of the world’s largest pharma companies. Notable lawmakers cheered the angry regulators on, urging the FDA to make an example of Novartis, which fielded Zolgensma at $2.1 million — the current record for a one-off therapy.

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Covid-19 roundup: GSK, Am­gen tai­lor R&D work to fit the coro­n­avirus age; Doud­na's ge­nomics crew launch­es di­ag­nos­tic lab

You can add Amgen and GSK to the list of deep-pocket drug R&D players who are tailoring their pipeline work to fit a new age of coronavirus.

Following in the footsteps of a lineup of big players like Eli Lilly — which has suspended patient recruitment for drug studies — Amgen and GSK have opted to take a more tailored approach. Amgen is intent on circling the wagons around key studies that are already fully enrolled, and GSK has the red light on new studies while the pandemic plays out.

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In a stun­ning set­back, Amarin los­es big patent fight over Vas­cepa IP. And its high-fly­ing stock crash­es to earth

Amarin’s shares $AMRN were blitzed Monday evening, losing billions in value as reports spread that the company had lost its high-profile effort to keep its Vascepa patents protected from generic drugmakers.

Amarin had been fighting to keep key patents under lock and key — and away from generic rivals — for another 10 years, but District Court Judge Miranda Du in Las Vegas ruled against the biotech. She ruled that:
(A)ll the Asserted Claims are invalid as obvious under 35 U.S.C.§ 103. Thus, the Court finds in favor of Defendants on Plaintiff’s remaining infringementclaim, and in their favor on their counterclaims asserting the invalidity of the AssertedClaims under 35 U.S.C. § 103.

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Aaron Royston, venBio

In­vest­ing in the time of coro­n­avirus: the good, the bad and the hope­ful, as biotech VC firms close funds worth $3B

Apart from disrupting biopharma R&D and regulatory timelines, the coronavirus pandemic has inevitably ravaged financial markets and eroded investor risk appetite. Investing in the time of coronavirus feels reckless, but if biotech venture funds are any indication, the time is ripe.

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Drug dis­cov­ery in the age of coro­n­avirus

Developing new drugs is incredibly hard. That’s why, despite superhuman efforts from the industry, we’re still looking at 12-18 months minimum before we can realistically hope for a vaccine for Covid-19, and probably months before there’s a proven viable drug treatment.

But our increasing ability to begin to industrialize the drug discovery and development process through an engineering approach means that we have more hope for speeding up this process than ever before — and not just to defeat coronavirus, but to benefit the development of all new medicines in the future.