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.


Im­age: Get­ty

Martin Shkreli [via Getty]

Pris­on­er #87850-053 does not get to add drug de­vel­op­er to his list of cred­its

Just days after Retrophin shed its last ties to founder Martin Shkreli, the biotech is reporting that the lead drug he co-invented flopped in a pivotal trial. Fosmetpantotenate flunked both the primary and key secondary endpoints in a placebo-controlled trial for a rare disease called pantothenate kinase-associated neurodegeneration, or PKAN.

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Hal Barron. GSK

GSK's Hal Bar­ron her­alds their sec­ond pos­i­tive piv­otal for cru­cial an­ti-BC­MA ther­a­py, point­ing to a push for quick OKs in a crowd­ed field

Hal Barron has his second positive round of Phase III data in hand for his anti-BCMA antibody drug conjugate belantamab mafodotin (GSK2857916). And GSK’s research chief says the data paves the way for their drive in search of an FDA approval for treating multiple myeloma.

It’s hard to overestimate the importance of this drug for GSK, a cornerstone of Barron’s campaign to make a dramatic impact on the oncology market and provide some long-lost excitement for the pharma giant’s pipeline. They’re putting this BCMA program at the front of that charge — looking to lead a host of rivals all aimed at the same target.

We don’t know what the data are yet, but DREAMM-2 falls on the heels of a promising set of data delivered 5 months ago for DREAMM-1. There investigators noted that complete responses among treatment-resistant patients rose to 15% in the extra year’s worth of data to look over, with a median progression-free survival rate of 12 months, up from 7.9 months reported earlier. The median duration of response was 14.3 months.

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We­bi­nar: Re­al World End­points — the brave new world com­ing in build­ing fran­chise ther­a­pies

Several biopharma companies have been working on expanding drug labels through the use of real world endpoints, combing through the data to find evidence of a drug’s efficacy for particular indications. But we’ve just begun. Real World Evidence is becoming an important part of every clinical development plan, in the soup-through-nuts approach used in building franchises.

I’ve recruited a panel of 3 top experts in the field — the first in a series of premium webinars — to look at the practical realities governing what can be done today, and where this is headed over the next few years, at the prodding of the FDA.

ZHEN SU — Merck Serono’s Senior Vice President and Global Head of Oncology
ELLIOTT LEVY — Amgen’s Senior Vice President of Global Development
CHRIS BOSHOFF — Pfizer Oncology’s Chief Development Officer

A premium subscription to Endpoints News is required to attend this webinar. Please upgrade to either an Insider or Enterprise plan for access. Already have Endpoints Premium? Please sign-in below. You can contact our Subscriptions team at help@endpointsnews.com with any issues.

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Why would Am­gen want to buy Alex­ion? An­a­lysts call hot­ly ru­mored takeover un­like­ly, but seize the mo­ment

A rumor that Amgen is closing in on buyout deal for Alexion has sparked a guessing game on just what kind of M&A strategy Amgen is pursuing and how much Alexion is worth.

Mizuho analyst Salim Syed first lent credence to the report out of the Spanish news outlet Intereconomía, which said Amgen is bidding as much as $200 per share. While the source may be questionable, “the concept of this happening doesn’t sound too crazy to me,” he wrote.

FDA asks why No­var­tis took two months to launch for­mal in­ter­nal probe, af­ter AveX­is flagged da­ta ma­nip­u­la­tion

And the plot thickens. Novartis $NVS officials are reportedly now scrambling to explain to the FDA why it took them two months to open an internal investigation into data discrepancies for their $2.1 million gene-therapy for spinal muscular dystrophy — the world’s most expensive drug.

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UP­DAT­ED: An em­bold­ened As­traZeneca splurges $95M on a pri­or­i­ty re­view vouch­er. Where do they need the FDA to hus­tle up?

AstraZeneca is in a hurry.

We learned this morning that the pharma giant — not known as a big spender, until recently — forked over $95 million to get its hands on a priority review voucher from Sobi, otherwise known as Swedish Orphan Biovitrum.

That marks another step down on price for a PRV, which allows the holder to slash 4 months off of any FDA review time.

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Brian Kaspar. AveXis via Twitter

AveX­is sci­en­tif­ic founder fires back at No­var­tis CEO Vas Narasimhan, 'cat­e­gor­i­cal­ly de­nies any wrong­do­ing'

Brian Kaspar’s head was among the first to roll at Novartis after company execs became aware of the fact that manipulated data had been included in its application for Zolgensma, now the world’s most expensive therapy.

But in his first public response, the scientific founder at AveXis — acquired by Novartis for $8.7 billion — is firing back. And he says that not only was he not involved in any wrongdoing, he’s ready to defend his name as needed.

I reached out to Brian Kaspar after Novartis put out word that he and his brother Allen had been axed in mid-May, two months after the company became aware of the allegations related to manipulated data. His response came back through his attorneys.

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Build­ing on suc­cess­ful PD-1 pact, Eli Lil­ly li­cens­es di­a­betes drug to Chi­nese part­ners at In­novent

Eli Lilly is expanding its partnership with China’s Innovent in a deal involving a diabetes drug sitting in its Phase I reserves.

The two companies had jointly developed one of China’s first homegrown PD-1 agents, scoring an approval for Tyvyt (sintilimab) late last year for relapsed/refractory classical Hodgkin’s lymphoma. This time around, Lilly is out-licensing a piece of its diabetes pipeline, a leading franchise that has historically produced the top-selling Trulicity and Humalog.

Am­gen, Al­ler­gan biosim­i­lar of Roche's block­buster Rit­ux­an clears an­oth­er US piv­otal study 

Novartis $NVS may have given up, but Amgen $AMGN and Allergan $AGN are plowing ahead with their knockoff of Roche’s blockbuster biologic Rituxan in the United States.

Their copycat, ABP 798, was found to have a clinically equivalent impact as Rituxan — meeting the main goal of the study involving CD20-positive B-cell non-Hodgkin’s lymphoma patients. This is the second trial supporting the profile of the biosimilar. In January, it came through with positive PK results in patients with rheumatoid arthritis.