Soft­Bank bets $1.1B on Roivant CEO Vivek Ra­maswamy’s brash new biotech strat­e­gy

With piv­otal da­ta loom­ing on his first big biotech play, Vivek Ra­maswamy just land­ed a whop­ping $1.1 bil­lion in­vest­ment to back the ex­plo­sive growth of Roivant Sci­ences. And he has a new fledg­ling ‘vant’ to add to the port­fo­lio to­day — his 6th — as Roivant mus­cles up on da­ta analy­sis tech.

Soft­Bank Vi­sion Fund — a mas­sive $100 bil­lion pri­vate eq­ui­ty fund from Japan’s Soft­Bank with huge con­tri­bu­tions from the Saud­is and a slate of tech com­pa­nies like Ap­ple and Sharp — is con­tribut­ing the cash, which in­cludes funds from some of Roivant’s ex­ist­ing in­vestors.

This is the first big biotech in­vest­ment high­light­ed by the Soft­Bank Vi­sion Fund, run by Japan­ese bil­lion­aire Masayoshi Son. The fund has been mak­ing a se­ries of $1 bil­lion plays like this, in­clud­ing a re­port­ed $1 bil­lion wa­ger on the sports e-com­merce com­pa­ny Fa­nat­ics Inc.

“I like bring­ing in a di­verse group of in­vestors in­to Roivant,” Ra­maswamy tells me, not at all averse to the fact that Soft­Bank’s in­vest­ments have been head­ing in­to brash com­pa­nies look­ing to re­shape the in­dus­tries they are in.

This new $1.1 bil­lion in­vest­ment brings Ra­maswamy’s to­tal raise to $2.5 bil­lion-plus in three years, which in­cludes the funds raised from two big IPOs for Ax­o­vant $AX­ON and My­ovant $MY­OV. By any mea­sure, that’s an ex­tra­or­di­nary sum for a group that has yet to see piv­otal da­ta on any of its drugs.

Ra­maswamy tells me that he plans to use the cash to ramp up a whole new group of com­pa­nies, not all of which will be pure biotech plays, like his first five star­tups. He al­so wants to go deep­er in­to new tech­nolo­gies that can im­prove a biotech’s ef­fi­cien­cy.

It’s no co­in­ci­dence that this big new in­vest­ment is com­ing at a time when a full slate of bio­phar­ma com­pa­nies are re­or­ga­niz­ing their R&D groups. What has been a con­stant over the past decade, as Big Phar­ma tried to cre­ate ef­fi­cient R&D groups, has be­come a tidal wave of re­struc­tur­ings. New CEOs at Eli Lil­ly, GSK, Alex­ion, Bio­gen and oth­ers are all in the process of kick­ing loose ear­ly- and late-stage as­sets as they try to cre­ate some ex­cite­ment around their pipelines. That in turn will cre­ate new op­por­tu­ni­ties for Ram­swamy and the biotech en­tre­pre­neurs backed by VCs who like to grab the most promis­ing as­sets and build com­pa­nies around them.

It’s a new busi­ness mod­el, and its day has ful­ly ar­rived. Ra­maswamy will not be hunt­ing for mon­ey to play a glob­al role on this stage.

Num­ber six on Ra­maswamy’s start­up list, Data­vant, will set out to col­lect da­ta from clin­i­cal tri­als, to help his de­cen­tral­ized group of biotechs iden­ti­fy new drugs and de­vel­op them more ef­fi­cient­ly. In many ways, it is a di­rect ex­ten­sion of the work Roivant has been do­ing to find new clin­i­cal as­sets for his star­tups.

The 32-year-old ex­ec has cre­at­ed a com­pa­ny mod­el in which a grow­ing line­up of biotech com­pa­nies op­er­ate un­der one um­brel­la, tap­ping the moth­er ship for core ser­vices like IT. And while most phar­mas like to fo­cus on 2 or 3 or 4 dis­eases, Ra­maswamy wants to go in mul­ti­ple di­rec­tions, mov­ing faster and more ef­fi­cient­ly than the in­dus­try has ever man­aged to achieve.

“We’re open to any dis­ease area we can grow in­to,” says Ra­maswamy, who turns 32 to­day.

The en­gag­ing Ra­maswamy has been pur­su­ing an in­creas­ing­ly pop­u­lar strat­e­gy in biotech, find­ing loose, late-stage as­sets in phar­ma pipelines that have of­ten ei­ther been aban­doned or side­lined or in need of a part­ner to share the risk on. He did that with a late-stage Alzheimer’s drug from Glax­o­SmithK­line, bagged it for on­ly $5 mil­lion up front and built Ax­o­vant around it. Piv­otal da­ta on the drug is now due in the fall.

The for­mer hedge fund man­ag­er al­so has been re­cruit­ing top tal­ent for his com­pa­nies, un­der­scored by the re­cent ar­rival of David Hung, post the $14 bil­lion Medi­va­tion buy­out, and ex-Cel­gene ex­ec Jack­ie Fouse, who was re­port­ed­ly of­fered the Te­va job and turned it down, pre­fer­ring to run the start­up Der­ma­vant.


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His­toric drug pric­ing re­forms pass; Pfiz­er ac­quires GBT; The long search for non-opi­oid pain drugs; and more

Welcome back to Endpoints Weekly, your review of the week’s top biopharma headlines. Want this in your inbox every Saturday morning? Current Endpoints readers can visit their reader profile to add Endpoints Weekly. New to Endpoints? Sign up here.

The Endpoints Weekly has officially crossed the 60,000 mark on subscribers — thanks to all of your support. As the editorial team grows, we’ve been able to do a lot more, with many of those on display this week. Be sure to check out Lei Lei Wu’s deep dive on pain R&D. If you missed it, you may also rewatch her companion panel here.

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Gold for adults, sil­ver for in­fants: Pfiz­er's Pre­vnar 2.0 head­ed to FDA months af­ter Mer­ck­'s green light

Pfizer was first to the finish line for the next-gen pneumococcal vaccine in adults, but Merck beat its rival with a jab for children in June.

Now, two months after Merck’s 15-valent Vaxneuvance won the FDA stamp of approval for kids, Pfizer is out with some late-stage data on its 20-valent shot for infants.

Known as Prevnar 20 for adults, Pfizer’s 20vPnC will head to the FDA by the end of this year for an approval request in infants, the Big Pharma said Friday morning. Discussions with the FDA will occur first and more late-stage pediatric trials are expected to read out soon, informing the regulatory pathway in other countries and regions.

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Seagen interim CEO Roger Dansey and Daiichi Sankyo CEO Sunao Manabe

Paving the way for Mer­ck­'s buy­out, Seagen los­es ar­bi­tra­tion dis­pute with Dai­ichi over ADC tech

As Seagen awaits a final buyout offer from Merck that could be in the territory of $40 billion, Seagen revealed Friday afternoon that it lost an arbitration dispute with Daiichi Sankyo relating to the companies’ 2008 collaboration around the use of antibody-drug conjugate (ADC) technology.

But that loss likely won’t matter much when it comes to Merck’s deal.

After breaking off its pact with Daiichi in mid-2015, the two companies battled over “linker” tech — a chemical bridge between an ADC’s antibody component and the cytotoxic payload — that Seagen claims Daiichi would improve upon and implement in its current generation of ADCs.

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Winselow Tucker, Eli Lilly's new Loxo unit chief commercial officer

Eli Lil­ly plucks a new com­mer­cial chief from Bris­tol My­ers in man­age­ment shuf­fle as HR chief re­tires

Eli Lilly has found a new chief commercial officer from among the ranks at Bristol Myers Squibb, as it says farewell to its longtime head of human resources Stephen Fry.

Fry announced on Thursday his plans to retire after more than 35 years with Lilly. He’ll vacate his seat as SVP of human resources and diversity at the end of the year, and current Loxo CCO Eric Dozier is slated to take his place. As a result, BMS’ Winselow Tucker is joining the team as Loxo CCO at the end of the month.

Simba Gill, Evelo Biosciences CEO

Sim­ba Gill heads back to Flag­ship af­ter sev­en-year run as Evelo CEO

Evelo Biosciences is on the hunt for a new CEO, with its founding chief Simba Gill switching to the chairman post to free up time for his new gig at Evelo’s incubator, Flagship Pioneering.

Gill will trade in his former Flagship title of venture partner with the higher-up role of executive partner, after originally joining in 2015. He’ll serve as CEO of Evelo until his successor is chosen, and at Flagship his priorities will be counseling and supporting the venture firm’s portfolio companies.

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Tony Coles, Cerevel CEO

Cerev­el takes the pub­lic of­fer­ing route, with a twist — rais­ing big mon­ey thanks to ri­val da­ta

As public biotechs seek to climb out of the bear market, a popular strategy to raise cash has been through public offerings on the heels of positive data. But one proposed raise Wednesday appeared to take advantage not of a company’s own data, but those from a competitor.

Cerevel Therapeutics plans to raise $250 million in a public offering and another $250 million in debt, the biotech announced Wednesday afternoon, even though it did not report any news on its pipeline. However, the move comes days after rival Karuna Therapeutics touted positive Phase III data in schizophrenia, a field where Cerevel is pursuing a similar program.

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House pass­es his­toric drug pric­ing re­forms, lin­ing up decades-in-the-mak­ing win for Biden and De­moc­rats

The US House of Representatives today voted along party lines (all Dems voted for it), 220-207 to pass new, wide-ranging legislation that will allow Medicare drug price negotiations for the first time ever, and cap seniors’ drug expenses to $2,000 per year and seniors’ insulin costs at $35 per month.

Setting up a major victory for President Joe Biden, representatives returned from their summer recess to pass the Inflation Reduction Act, even as many noted the bill would only modestly reduce inflation.

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Senate Finance Committee Chair Ron Wyden (D-OR) (Francis Chung/E&E News/POLITICO via AP Images)

Sen­ate Fi­nance chair con­tin­ues his in­ves­ti­ga­tion in­to phar­ma tax­es with re­quests for Am­gen

Amgen is the latest pharma company to appear on the radar of Senate Finance Committee Chair Ron Wyden (D-OR), who is investigating the way pharma companies are using subsidiaries in low- or zero-tax countries to lower their tax bills.

Like its peers Merck, AbbVie and Bristol Myers Squibb, Wyden notes how Amgen uses its Puerto Rico operations to consistently pay tax rates that are substantially lower than the U.S. corporate tax rate of 21%, with an effective tax rate of 10.7% in 2020 and 12.1% in 2021.