Shoot­ing for PhI­II, Spero tees up a new lead an­tibi­ot­ic in-li­censed cheap as it lines up $86M IPO

Ankit Ma­hade­via

Late last week Spero Ther­a­peu­tics threw its S-1 in­to the IPO ring as the biotech queue for jump­ing in­to the pub­lic are­na was grow­ing longer by the day.

Spero got start­ed with some seed fund­ing from At­las Ven­ture and a high-pro­file part­ner­ship with Roche, but that pact end­ed last year with­out near­ly as much fan­fare as it was orig­i­nal­ly an­nounced.

The biotech’s lead an­tibi­ot­ic is SPR994, an oral for­mu­la­tion of the car­bapenum-class an­tibi­ot­ic tebipen­em, which Spero in-li­censed from Mei­ji Sei­ka with a very mod­est up­front of $600,000, with up to $3 mil­lion in mile­stones. The Japan­ese com­pa­ny won an ap­proval for this an­tibi­ot­ic in 2009 and hand­ed over da­ta on 1200 pa­tients. The ther­a­py is sold as Orapen­em.

That fits in­to a new strat­e­gy for flip­ping biotechs in­to the pub­lic mar­kets. By in-li­cens­ing the prod­uct on a re­gion­al ba­sis — the an­nounce­ment came out yes­ter­day — Spero can style it­self as a near-term late-stage biotech com­pa­ny, which is like­ly to be much more ap­pe­tiz­ing the in­vestors.

Two more drugs — SPR741 and SPR206 — are com­ing off Spero’s plat­form tech, which is de­signed to punch up an­tibi­otics so they can pen­e­trate the out­er cell mem­branes of Gram-neg­a­tive bac­te­ria.

The plan now is to tee up a Phase I study of SPR994 and then move straight in­to a piv­otal Phase III for com­mu­ni­ty-ac­quired uri­nary tract in­fec­tions, pro­vid­ed they get the FDA’s bless­ing.

Spero was launched by found­ing CEO Ankit Ma­hade­via, who earned a pay pack­age worth a to­tal of $814,985 last year. Ma­hade­via al­so owns 2.8% of the stock. The biotech gath­ered a $51.7 mil­lion crossover round last spring.

Two of At­las’ funds own around 23% of the eq­ui­ty now, with SR One com­ing in at 17% and the old Google Ven­tures ring­ing up at 13.2%. Oth­er in­vestors in­clude Lund­beck­fond, RA and Os­age Uni­ver­si­ty Part­ners

As Nas­daq en­rolls the fi­nal batch of 2019 IPOs, how have the num­bers com­pared to past years?

IGM Biosciences’ upsized IPO haul, coming after SpringWorks’ sizable public debut, has revved up some momentum for the last rush of biotech IPOs in 2019.

With 39 new listings on the books and roughly two more months to go before winding down, Nasdaq’s head of healthcare listings Jordan Saxe sees the exchange marking 50 to 60 biopharma IPOs for the year.

“December 15 is usually the last possible day that companies will price,” he said, as companies get ready for business talks at the annual JP Morgan Healthcare Conference in January.

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A fa­vorite in Alex­ion’s C-suite is leav­ing, and some mighty sur­prised an­a­lysts aren’t the least bit hap­py about it

Analysts hate to lose a biotech CFO they’ve come to trust and admire — especially if they’re being blindsided by a surprise exit.

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David Grainger [file photo]

'Dis­con­nect the bas­tard­s' — one biotech's plan to break can­cer cell­s' uni­fied de­fens­es

Chemotherapy and radiotherapy are the current gladiators of cancer treatment, but they come with well-known limitations and side-effects. The emergence of immunotherapy — a ferocious new titan in oncologist’s toolbox — takes the brakes off the immune system to kill cancer cells with remarkable success in some cases, but the approach is not always effective. What makes certain forms of cancer so resilient? Scientists may have finally pieced together a tantalizing piece of the puzzle, and a new biotech is banking on a new approach to fill the gap.

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While No­var­tis ban­ish­es Zol­gens­ma scan­dal scars — Bio­gen goes on a Spin­raza 'of­fen­sive'

While Novartis painstakingly works to mop up the stench of the data manipulation scandal associated with its expensive gene therapy for spinal muscular atrophy (SMA) Zolgensma— rival Biogen is attempting to expand the use of its SMA therapy, Spinraza. 

The US drugmaker $BIIB secured US approval for Spinraza for use in the often fatal genetic disease in 2016. The approval covered a broad range of patients with infantile-onset (most likely to develop Type 1) SMA. 

Jason Kelly. Mike Blake/Reuters via Adobe

Eye­ing big ther­a­peu­tic push, Gink­go bags $290M to build a cell pro­gram­ming em­pire

Ginkgo Bioworks is on a roll. Days after publicizing a plan to nurture new startups via partnerships with accelerators Y Combinator and Petri, the Boston biotech says it has raised another $290 million for its cell programming platform to reach further and wider.

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UP­DAT­ED: Speak­er Nan­cy Pelosi to un­veil bill for fed­er­al­ly ne­go­ti­at­ed drug prices

After months of buzz from both sides of the aisle, Speaker Nancy Pelosi will today introduce her plan to allow the federal government to negotiate prices for 250 prescription drugs, setting up a showdown with a pharmaceutical industry working overtime to prevent it.

The need to limit drug prices is a rare point of agreement between President Trump and Democrats, although the president has yet to comment on the proposal and will likely face pressure to back a more conservative option or no bill at all. Republican Senator Chuck Grassley is reportedly lobbying his fellow party members on a more modest proposal he negotiated with Democratic Senator Ron Wyden in July.

Jeff Kindler's Cen­trex­ion re­news bid to make pub­lic de­but

Jeffrey Kindler’s plan to take his biotech — which is developing a slate of non-opioid painkillers — public, is back on.

The Boston based company, led by former Pfizer $PFE chief Kindler, originally contemplated a $70 million to $80 million IPO last year— but eventually postponed that strategy. On Wednesday, the company revived its bid to make a public debut in a filing with the SEC — although no pricing details were disclosed.

Zachary Hornby. Boundless

'A fourth rev­o­lu­tion in can­cer ther­a­pies': ARCH-backed Bound­less Bio flash­es big check, makes big­ger promis­es in de­but

It was the cellular equivalent of opening your car door and finding an active, roaring engine in the driver seat.

Scientists learned strands of DNA could occasionally appear outside of its traditional home in the nucleus in the 1970s, when they appeared as little, innocuous circles on microscopes; inexplicable but apparently innate. But not until UC San Diego’s Paul Mischel published his first study in Science in 2014 did researchers realize these circles were not only active but potentially overactive and driving some cancer tumors’ superhuman growth.

Scott Gottlieb, AP Images

Scott Got­tlieb is once again join­ing a team that en­joyed good times at the FDA un­der his high-en­er­gy stint at the helm

Right after jumping on Michael Milken’s FasterCures board on Monday, the newly departed FDA commissioner is back today with news about another life sciences board post that gives him a ringside chair to cheer on a lead player in the real-world evidence movement — one with very close ties to the FDA.

Aetion is reporting this morning that Gottlieb is joining their board, a group that includes Mohamad Makhzoumi, a general partner at New Enterprise Associates, where Gottlieb returned after stepping out of his role at the FDA 2 years after he started.

Gottlieb — one of the best connected execs in biopharma — knows this company well. As head of FDA he championed the use of real-world evidence to help guide drug developers and the agency in gaining greater efficiencies, which helped set up Aetion as a high-profile player in the game.

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