Sur­rozen grabs $33M, joins star­tups look­ing to spark a come­back in re­gen­er­a­tive med

In an­oth­er sign that the long, cold win­ter for re­gen­er­a­tive med­i­cine may be com­ing to an end, The Col­umn Group led a $33 mil­lion start­up round for Sur­rozen, a new Bay Area biotech com­ing out of the labs at Stan­ford.

Christo­pher Gar­cia, Stan­ford

The key fig­ure in this start­up is Christo­pher Gar­cia, a Stan­ford in­ves­ti­ga­tor who’s been drawn in­to the world of Wnt. While much of his la­bor has cen­tered on can­cer re­search, he’s al­so spent time de­vel­op­ing Wnt sur­ro­gates that can play the same role as the nat­ur­al pro­teins in form­ing tis­sue and spurring re­pair, but hope­ful­ly with bet­ter drug-like prop­er­ties that will make them sim­pler to man­u­fac­ture and test in hu­mans.

If you get an ex­cess of Wnt ac­tiv­i­ty, says Tim Kutzkey, the man­ag­ing part­ner at The Col­umn Group who is shep­herd­ing the in­vest­ment in Sur­rozen, it’s easy to see how Wnt could play in role in can­cer. But Kutzkey been more at­tract­ed to the re­gen­er­a­tive side of that equa­tion.

As Kutzkey tells it, Wnt has been a frus­trat­ing field.

“They’re dif­fi­cult to han­dle, pro­duce, al­so dif­fi­cult to tune,” he says. “Wnt could be a very pow­er­ful tool; how to ad­vance them in drug de­vel­op­ment has stymied folks for some time.”

Tim Kutzkey, The Col­umn Group

Now Sur­rozen will see if the sur­ro­gates can over­come the ob­sta­cles.

The aca­d­e­m­ic founders al­so in­clude Roe­land Nusse, a Howard Hugh­es in­ves­ti­ga­tor at Stan­ford, along with Calvin Kuo and Clau­dia Jan­da. The board al­so tilts to high sci­ences, with Harold Var­mus, MD, co-re­cip­i­ent of the 1989 No­bel Prize in Phys­i­ol­o­gy or Med­i­cine and Lewis Thomas Uni­ver­si­ty Pro­fes­sor of Med­i­cine at Weill Cor­nell Med­i­cine and Wen-Chen Yeh, MD, PhD, chief sci­en­tif­ic of­fi­cer of Sur­rozen.

Right now Sur­rozen has a staff of 18, says Kutzkey, with enough cash on hand to get through the next 2.5 to 3 years of re­search work, ad­vanc­ing pre­clin­i­cal pro­grams to­ward hu­man stud­ies. But there’s no ques­tion this is an ear­ly play.

Re­gen­er­a­tive med­i­cine and stem cell re­search went through a pop­u­lar surge in Cal­i­for­nia, with lit­tle to show for it by way of us­able new ther­a­peu­tic tech­nolo­gies. Now, though, af­ter the first wave of hype has ebbed away, com­pa­nies like Fre­quen­cy Ther­a­peu­tics and a new $225 mil­lion joint ven­ture be­tween Ver­sant and Bay­er dubbed Blue­Rock have stepped up take a new, per­haps bet­ter in­formed shot at the field. Sur­rozen thinks it can be part of the re­nais­sance.

The com­pa­ny will set up at Oys­ter Point in South San Fran­cis­co, part of a bur­geon­ing Bay Area hub that has been at­tract­ing a range of biotechs and Big Phar­ma groups.

Norbert Bischofberger. Kronos

Backed by some of the biggest names in biotech, Nor­bert Bischof­berg­er gets his megaround for plat­form tech out of MIT

A little over a year ago when I reported on Norbert Bischofberger’s jump from the CSO job at giant Gilead to a tiny upstart called Kronos, I noted that with his connections in biotech finance, that $18 million launch round he was starting off with could just as easily have been $100 million or more.

With his first anniversary now behind him, Bischofberger has that mega-round in the bank.

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Chas­ing Roche's ag­ing block­buster fran­chise, Am­gen/Al­ler­gan roll out Avastin, Her­ceptin knock­offs at dis­count

Let the long battle for biosimilars in the cancer space begin.

Amgen has launched its Avastin and Herceptin copycats — licensed from the predecessors of Allergan — almost two years after the FDA had stamped its approval on Mvasi (bevacizumab-awwb) and three months after the Kanjinti OK (trastuzumab-anns). While the biotech had been fielding biosimilars in Europe, this marks their first foray in the US — and the first oncology biosimilars in the country.

Seer adds ex-FDA chief Mark Mc­Clel­lan to the board; Her­cules Cap­i­tal makes it of­fi­cial for new CEO Scott Bluestein

→ On the same day it announced a $17.5 million Series C, life sciences and health data company Seer unveiled that it had lured former FDA commissioner and ex-CMS administrator Mark McClellan on to its board. “Mark’s deep understanding of the health care ecosystem and visionary insights on policy reform will be crucial in informing our thinking as we work to bring our liquid biopsy and life sciences products to market,” said Seer chief and founder Omid Farokhzad in a statement.

Daniel O'Day

No­var­tis hands off 3 pre­clin­i­cal pro­grams to the an­tivi­ral R&D mas­ters at Gilead

Gilead CEO Daniel O’Day’s new task hunting up a CSO for the company isn’t stopping the industry’s dominant antiviral player from doing pipeline deals.

The big biotech today snapped up 3 preclinical antiviral programs from pharma giant Novartis, with drugs promising to treat human rhinovirus, influenza and herpes viruses. We don’t know what the upfront is, but the back end has $291 million in milestones baked in.

Francesco De Rubertis

Medicxi is rolling out its biggest fund ever to back Eu­rope's top 'sci­en­tists with strange ideas'

Francesco De Rubertis built Medicxi to be the kind of biotech venture player he would have liked to have known back when he was a full time scientist.

“When I was a scientist 20 years ago I would have loved Medicxi,’ the co-founder tells me. It’s the kind of place run by and for investigators, what the Medicxi partner calls “scientists with strange ideas — a platform for the drug hunter and scientific entrepreneur. That’s what I wanted when I was a scientist.”

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Af­ter a decade, Vi­iV CSO John Pot­tage says it's time to step down — and he's hand­ing the job to long­time col­league Kim Smith

ViiV Healthcare has always been something unique in the global drug industry.

Owned by GlaxoSmithKline and Pfizer — with GSK in the lead as majority owner — it was created 10 years ago in a time of deep turmoil for the field as something independent of the pharma giants, but with access to lots of infrastructural support on demand. While R&D at the mother ship inside GSK was souring, a razor-focused ViiV provided a rare bright spot, challenging Gilead on a lucrative front in delivering new combinations that require fewer therapies with a more easily tolerated regimen.

They kept a massive number of people alive who would otherwise have been facing a death sentence. And they made money.

And throughout, John Pottage has been the chief scientific and chief medical officer.

Until now.

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Vas Narasimhan, AP Images

On a hot streak, No­var­tis ex­ecs run the odds on their two most im­por­tant PhI­II read­outs. Which is 0.01% more like­ly to suc­ceed?

Novartis CEO Vas Narasimhan is living in the sweet spot right now.

The numbers are running a bit better than expected, the pipeline — which he assembled as development chief — is performing and the stock popped more than 4% on Thursday as the executive team ran through their assessment of Q2 performance.

Year-to-date the stock is up 28%, so the investors will be beaming. Anyone looking for chinks in their armor — and there are plenty giving it a shot — right now focus on payer acceptance of their $2.1 million gene therapy Zolgensma, where it’s early days. And CAR-T continues to underperform, but Novartis doesn’t appear to be suffering from it.

So what could go wrong?

Actually, not much. But Tim Anderson at Wolfe pressed Narasimhan and his development chief John Tsai to pick which of two looming Phase III readouts with blockbuster implication had the better odds of success.

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On a glob­al romp, Boehringer BD team picks up its third R&D al­liance for Ju­ly — this time fo­cused on IPF with $50M up­front

Boehringer Ingelheim’s BD team is on a global deal spree. The German pharma company just wrapped its third deal in 3 weeks, going back to Korea for its latest pipeline pact — this time focused on idiopathic pulmonary fibrosis.

They’re handing over $50 million to get their hands on BBT-877, an ATX inhibitor from Korea’s Bridge Biotherapeutics that was on display at a science conference in Dallas recently. There’s not a whole lot of data to evaluate the prospects here.

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Servi­er scoots out of an­oth­er col­lab­o­ra­tion with Macro­Gen­ics, writ­ing off their $40M

Servier is walking out on a partnership with MacroGenics $MGNX — for the second time.

After the market closed on Wednesday MacroGenics put out word that Servier is severing a deal — inked close to 7 years ago — to collaborate on the development of flotetuzumab and other Dual-Affinity Re-Targeting (DART) drugs in its pipeline.

MacroGenics CEO Scott Koenig shrugged off the departure of Servier, which paid $20 million to kick off the alliance and $20 million to option flotetuzumab — putting a heavily back-ended $1 billion-plus in additional biobuck money on the table for the anti-CD123/CD3 bispecific and its companion therapies.