South Ko­rea jails 3 Sam­sung ex­ecs for de­stroy­ing ev­i­dence in Bi­o­Log­ics probe

Three Sam­sung ex­ec­u­tives in Ko­rea are go­ing to jail.

The con­vic­tions came in what pros­e­cu­tors had billed as “biggest crime of ev­i­dence de­struc­tion in the his­to­ry of South Ko­rea”: a case of al­leged cor­po­rate in­trigue that was thrown open when in­ves­ti­ga­tors found what was hid­den be­neath the floor of a Sam­sung Bi­o­Log­ics plant. Eight em­ploy­ees in to­tal were found guilty of ev­i­dence tam­per­ing and the three ex­ec­u­tives were each sen­tenced to up to two years in prison.

The court did not rule on larg­er al­le­ga­tions of fraud that have swirled around the com­pa­ny. Lee Jae-yong, Sam­sung’s de fac­to leader, still faces bribery charges in a sep­a­rate case.

“De­stroy­ing and hid­ing ev­i­dence in a group-wide move re­gard­ing the ac­count­ing fraud case that was an is­sue the pub­lic took in­ter­est in is not a light crime,” the court said, per Yon­hap, a South Ko­re­an news agency. “The meth­ods for con­ceal­ment, which are dif­fi­cult for an av­er­age per­son to imag­ine, al­so shocked so­ci­ety.”

On a warm af­ter­noon in mid-May, South Ko­re­an in­ves­ti­ga­tors moved in on a Sam­sung Bi­o­Log­ics plant on the out­skirts of West­ern Seoul. Rip­ping open a meet­ing room floor, they found a trove of lap­tops, USB dri­ves and a com­put­er serv­er. It was not the first raid in a case that was opened last No­vem­ber and had its roots as far back as 2015.

That year, Ko­rea’s fi­nan­cial watch­dog com­plained that Sam­sung Bi­o­log­ics’ val­ue had been in­flat­ed by $3.8 bil­lion be­fore its 2016 pub­lic list­ing. Sam­sung re­vealed it was be­ing au­dit­ed in May of 2018 and pros­e­cu­tors picked it up the fol­low­ing No­vem­ber. Of­fi­cials sus­pect­ed the com­pa­ny of il­le­gal­ly chang­ing its ac­count­ing meth­ods in a move that in­flat­ed the val­ue of their stake in Sam­sung Bioepis, a joint ven­ture with Bio­gen.

Pros­e­cu­tors al­leged that four days af­ter Sam­sung Elec­tron­ics re­ceived no­tice of the probe in May 2018, they held an ur­gent meet­ing at the head of­fice, where they de­cid­ed to erase da­ta, ac­cord­ing to the Ko­re­an Bio­med­ical Re­view. They told Bi­o­Log­ics and Bioepis to do the same, pros­e­cu­tors al­leged, and then re­quest­ed to erase log records to delete ev­i­dence of the dele­tion.

Af­ter delet­ing the da­ta from the main serv­er, Sam­sung Bi­o­Log­ics took the pre­vi­ous servers and back­up servers that still held the da­ta and placed them be­neath the floor in one of the rooms.

“Ini­tial­ly, the pros­e­cu­tion was nev­er able to think that they would have torn the floor, and this floor could not be lift­ed by hand,” pros­e­cu­tors said, ac­cord­ing to KBR.

The em­ploy­ees lat­er ad­mit­ted to hav­ing delet­ed da­ta, but said their ac­tions were not linked to any al­leged fraud. Pros­e­cu­tors had sought sen­tences of up to 4 years.

Talk around the case has cen­tered in part on Lee Jae-yong, the el­dest child of Sam­sung chair­man and scion Lee Kun-hee. Crit­ics say he stood to ben­e­fit from the val­u­a­tion changes in 2015, and ex­perts told the Fi­nan­cial Times this week’s con­vic­tions could trig­ger fur­ther in­ves­ti­ga­tions in­to the em­bat­tled heir.

2019 Trin­i­ty Drug In­dex Eval­u­ates Ac­tu­al Com­mer­cial Per­for­mance of Nov­el Drugs Ap­proved in 2016

Fewer Approvals, but Neurology Rivals Oncology and Sees Major Innovations

This report, the fourth in our Trinity Drug Index series, outlines key themes and emerging trends in the industry as we progress towards a new world of targeted and innovative products. It provides a comprehensive evaluation of the performance of novel drugs approved by the FDA in 2016, scoring each on its commercial performance, therapeutic value, and R&D investment (Table 1: Drug ranking – Ratings on a 1-5 scale).

How to cap­i­talise on a lean launch

For start-up biotechnology companies and resource stretched pharmaceutical organisations, launching a novel product can be challenging. Lean teams can make setting a launch strategy and achieving your commercial goals seem like a colossal undertaking, but can these barriers be transformed into opportunities that work to your brand’s advantage?
We spoke to Managing Consultant Frances Hendry to find out how Blue Latitude Health partnered with a fledgling subsidiary of a pharmaceutical organisation to launch an innovative product in a
complex market.
What does the launch environment look like for this product?
FH: We started working on the product at Phase II and now we’re going into Phase III trials. There is a significant unmet need in this disease area, and everyone is excited about the launch. However, the organisation is still evolving and the team is quite small – naturally this causes a little turbulence.

Gilead claims Tru­va­da patents in HHS’ com­plaint are in­valid

Back in November, the Department of Health and Human Services took the rare step of filing a complaint against Gilead for infringing on government-owned patents related to the HIV drug Truvada (emtricitabine/tenofovir disoproxil fumarate) for pre-exposure prophylaxis (PrEP).

But on Thursday, Gilead filed its own retort, making clear that it does not believe it has infringed on the Centers for Disease Control and Prevention’s (CDC) Truvada patents because they are invalid.

Aymeric Le Chatelier, Ipsen

A $1B-plus drug stum­bles in­to an­oth­er big PhI­II set­back -- this time flunk­ing fu­til­i­ty test -- as FDA hold re­mains in ef­fect for Ipsen

David Meek

At the time Ipsen stepped up last year with more than a billion dollars in cash to buy Clementia and a late-stage program for a rare bone disease that afflicts children, then CEO David Meek was confident that he had put the French biotech on a short path to a mid-2020 launch.

Instead of prepping a launch, though, the company was hit with a hold on the FDA’s concerns that a therapy designed to prevent overgrowth of bone for cases of fibrodysplasia ossificans progressiva might actually stunt children’s growth. So they ordered a halt to any treatments for kids 14 and under. Meek left soon after to run a startup in Boston. And today the Paris-based biotech is grappling with the independent monitoring committee’s decision that their Phase III had failed a futility test.

Endpoints News

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Roche's check­point play­er Tecen­triq flops in an­oth­er blad­der can­cer sub­set

Just weeks after Merck’s star checkpoint inhibitor Keytruda secured FDA approval for a subset of bladder cancer patients, Swiss competitor Roche’s Tecentriq has failed in a pivotal bladder cancer study.

The 809-patient trial — IMvigor010 — tested the PD-L1 drug in patients with muscle-invasive urothelial cancer (MIUC) who had undergone surgery, and were at high risk for recurrence.

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UP­DAT­ED: Eli Lil­ly’s $1.6B can­cer drug failed to spark even the slight­est pos­i­tive gain for pa­tients in its 1st PhI­II

Eli Lilly had high hopes for its pegylated IL-10 drug pegilodecakin when it bought Armo last year for $1.6 billion in cash. But after reporting a few months ago that it had failed a Phase III in pancreatic cancer, without the data, its likely value has plunged. And now we’re getting some exact data that underscore just how little positive effect it had.

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UP­DAT­ED: FDA’s golodirsen CRL: Sarep­ta’s Duchenne drugs are dan­ger­ous to pa­tients, of­fer­ing on­ly a small ben­e­fit. And where's that con­fir­ma­to­ry tri­al?

Back last summer, Sarepta CEO Doug Ingram told Duchenne MD families and investors that the FDA’s shock rejection of their second Duchenne MD drug golodirsen was due to some concerns regulators raised about the risk of infection and the possibility of kidney toxicity. But when pressed to release the letter for all to see, he declined, according to a report from BioPharmaDive, saying that kind of move “might not look like we’re being as respectful as we’d like to be.”

He went on to assure everyone that he hadn’t misrepresented the CRL.

But Ingram’s public remarks didn’t include everything in the letter, which — following the FDA’s surprise about-face and unexplained approval — has now been posted on the FDA’s website and broadly circulated on Twitter early Wednesday.

The CRL raises plenty of fresh questions about why the FDA abruptly decided to reverse itself and hand out an OK for a drug a senior regulator at the FDA believed — 5 months ago, when he wrote the letter — is dangerous to patients. It also puts the spotlight back on Sarepta $SRPT, which failed to launch a confirmatory study of eteplirsen, which was only approved after a heated internal controversy at the FDA. Ellis Unger, director of CDER’s Office of Drug Evaluation I, notes that study could have clarified quite a lot about the benefit and risks associated with their drugs — which can cost as much as a million dollars per patient per year, depending on weight.

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Gilead dusts off a failed Ebo­la drug as coro­n­avirus spreads; Ex­elix­is boasts pos­i­tive Ph I/II da­ta

→ Less than a year ago Gilead’s antiviral remdesivir failed to make the cut as investigators considered a raft of potential drugs that could be used against an Ebola outbreak. But it may gain a new mission with the outbreak of the coronavirus in China, which is popping up now around the world.

Gilead put out a statement saying that they’re now in discussions with health officials in the US and China about testing their NUC against the virus. It’s the latest in a growing lineup of biopharma companies that are marshaling R&D forces to see if they can come up with a vaccine or therapy to blunt the spread of the virus, which has now sickened hundreds, killed at least 17 people and led the Chinese government to start quarantining cities.

Alex Karnal (Deerfield)

Deer­field vaults to the top of cell and gene ther­a­py CD­MO game with $1.1B fa­cil­i­ty at Philadel­phi­a's newest bio­phar­ma hub

Back at the beginning of 2015, Deerfield Management co-led a $10 million Series C for a private gene therapy startup, reshaping the company and bringing in new leaders to pave way for an IPO just a year later.

Fast forward four more years and the startup, AveXis, is now a subsidiary of Novartis marketing the second-ever gene therapy to be approved in the US.

For its part, Deerfield has also grown more comfortable and ambitious about the nascent field. And the investment firm is now putting down its biggest bet yet: a $1.1 billion contract development and manufacturing facility to produce everything one needs for cell and gene therapy — faster and better than how it’s currently done.