Thiel-backed Com­pass adds $49M to A round, bring­ing to­tal to $132M

A Cam­bridge start­up that’s been try­ing — and fail­ing — to op­er­ate un­der the radar these past three years is now ready to step in­to the lime­light. Com­pass Ther­a­peu­tics says it’s fi­nal­ly wrapped its years-long quest to raise a Se­ries A mega-round to­tal­ing $132 mil­lion, and it’s head­ing to the clin­ic with a lead im­muno-on­col­o­gy drug.

Tom Schuetz

The com­pa­ny has been col­lect­ing chunks of mon­ey for this raise over the past three years, with word leak­ing rather ear­ly in the fundrais­ing process. Re­porters have dug up fundrais­ing up­dates sev­er­al times since (in­clud­ing a piece not­ing Pe­ter Thiel was a backer), shed­ding some light on the com­pa­ny be­fore it was quite ready, Com­pass CEO Tom Schuetz tells me.

The news to­day is that they added $49 mil­lion to a pre­vi­ous­ly-re­port­ed $83 mil­lion round. In­stead of call­ing it a small B round, they’re opt­ing to wrap it in­to one big A round (hey, Se­ries A mega-rounds are of­fi­cial­ly a thing).

You may have seen a Boston Busi­ness Jour­nal piece back in 2017 re­port­ing a $172 mil­lion cap­i­tal raise for Com­pass. To clear things up, Com­pass says that was pulled from SEC fil­ings that in­clud­ed war­rants that hadn’t been cashed in yet. The $132 mil­lion fig­ure is what the com­pa­ny has raised to­tal since its in­cep­tion — it is not in ad­di­tion to pre­vi­ous­ly-re­port­ed rounds. And those $60 mil­lion war­rants are still avail­able, but Schuetz tells me Com­pass doesn’t in­tend to pull them down — they have plen­ty of mon­ey to get in­to the clin­ic.

Fund­ing for this round was led by Or­biMed Ad­vi­sors and in­clud­ed F-Prime Cap­i­tal, Cowen Health­care In­vest­ments, and Thiel Cap­i­tal, among oth­ers.

The new $49 mil­lion that just closed will go to­ward two main ef­forts: push­ing its can­cer drug CTX-471 in­to hu­man tri­als in 2019 and choos­ing two more prod­uct can­di­dates for the clin­ic.

Schuetz wouldn’t name the tar­get for CTX-471, but said the com­pa­ny’s new ap­proach to mon­o­clon­al an­ti­body dis­cov­ery has al­lowed them to iden­ti­fy 30 tar­gets in can­cer, in­flam­ma­tion, and au­toim­mune dis­ease.

“We can take mil­lions or tens of mil­lions of in­di­vid­ual an­ti­bod­ies and we can dis­play those on the sur­face of hu­man cells, and that tech al­lows us to screen for an­ti­bod­ies that bind to the tar­get of in­ter­est,” Schuetz said. “The tech­nol­o­gy has al­lowed us to be ex­treme­ly rapid and ef­fi­cient in drug dis­cov­ery.”

Com­pass has more than 15 ther­a­peu­tic can­di­dates ad­vanc­ing through pre­clin­i­cal de­vel­op­ment now.

ZS Per­spec­tive: 3 Pre­dic­tions on the Fu­ture of Cell & Gene Ther­a­pies

The field of cell and gene therapies (C&GTs) has seen a renaissance, with first generation commercial therapies such as Kymriah, Yescarta, and Luxturna laying the groundwork for an incoming wave of potentially transformative C&GTs that aim to address diverse disease areas. With this renaissance comes several potential opportunities, of which we discuss three predictions below.

Allogenic Natural Killer (NK) Cells have the potential to displace current Cell Therapies in oncology if proven durable.

Despite being early in development, Allogenic NKs are proving to be an attractive new treatment paradigm in oncology. The question of durability of response with allogenic therapies is still an unknown. Fate Therapeutics’ recent phase 1 data for FT516 showed relatively quicker relapses vs already approved autologous CAR-Ts. However, other manufacturers, like Allogene for their allogenic CAR-T therapy ALLO-501A, are exploring novel lymphodepletion approaches to improve persistence of allogenic cells. Nevertheless, allogenic NKs demonstrate a strong value proposition relative to their T cell counterparts due to comparable response rates (so far) combined with the added advantage of a significantly safer AE profile. Specifically, little to no risk of graft versus host disease (GvHD), cytotoxic release syndrome (CRS), and neurotoxicity (NT) have been seen so far with allogenic NK cells (Fig. 1). In addition, being able to harness an allogenic cell source gives way to operational advantages as “off-the-shelf” products provide improved turnaround time (TAT), scalability, and potentially reduced cost. NKs are currently in development for a variety of overlapping hematological indications with chimeric antigen receptor T cells (CAR-Ts) today, and the question remains to what extent they will disrupt the current cell therapy landscape. Click for more details.

Graphic: Kathy Wong for Endpoints News

What kind of biotech start­up wins a $3B syn­di­cate, woos a gallery of mar­quee sci­en­tists and re­cruits GSK's Hal Bar­ron as CEO in a stun­ner? Let Rick Klaus­ner ex­plain

It started with a question about a lifetime’s dream on a walk with tech investor Yuri Milner.

At the beginning of the great pandemic, former NCI chief and inveterate biotech entrepreneur Rick Klausner and the Facebook billionaire would traipse Los Altos Hills in Silicon Valley Saturday mornings and talk about ideas.

Milner’s question on one of those mornings on foot: “What do you want to do?”

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Hal Barron, Endpoints UKBIO20 (Jeff Rumans)

'Al­tos was re­al­ly a once-in-a-life­time op­por­tu­ni­ty': Hal Bar­ron re­flects on his big move

By all accounts, Hal Barron had one of the best jobs in Big Pharma R&D. He made more than $11 million in 2020, once again reaping more than his boss, Emma Walmsley, who always championed him at every opportunity. And he oversaw a global R&D effort that struck a variety of big-dollar deals for oncology, neurodegeneration and more.

Sure, the critics never let up about what they saw as a rather uninspiring late-stage pipeline, where the rubber hits the road in the Big Pharma world’s hunt for the next big near-term blockbuster, but the in-house reviews were stellar. And Barron was firmly focused on bringing up the success rate in clinical trials, holding out for the big rewards of moving the dial from an average 10% success rate to 20%.

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Executive Director of the EMA Emer Cooke (AP Photo/Geert Vanden Wijngaert)

Eu­ro­pean Par­lia­ment signs off on strength­en­ing drug reg­u­la­tor's abil­i­ty to tack­le short­ages

The European Parliament on Thursday endorsed a plan to increase the powers of the European Medicines Agency, which will be better equipped to monitor and mitigate shortages of drugs and medical devices.

By a vote of 655 to 31, parliament signed off on a provisional agreement reached with the European Council from last October, in which the EMA will create two shortage steering groups (one for drugs, the other for devices), a new European Shortages Monitoring Platform to facilitate data collection and increase transparency, and on funding for the work of the steering groups, task force, working parties and expert panels that are to be established.

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FDA+ roundup: FDA's neu­ro­science deputy de­parts amid on­go­ing Aduhelm in­ves­ti­ga­tions; Califf on the ropes?

Amid increased scrutiny into the close ties between FDA and Biogen prior to the controversial accelerated approval of Aduhelm, the deputy director of the FDA’s office of neuroscience has called it quits after more than two decades at the agency.

Eric Bastings will now take over as VP of development strategy at Ionis Pharmaceuticals, the company said Wednesday, where he will provide senior clinical and regulatory leadership in support of Ionis’ pipeline.

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Sec­ondary patents prove to be key in biosim­i­lar block­ing strate­gies, re­searchers find

While the US biosimilars industry has generally been a disappointment since its inception, with FDA approving 33 biosimilars since 2015, just a fraction of those have immediately followed their approvals with launches. And more than a handful of biosimilars for two of the biggest blockbusters of all time — AbbVie’s Humira and Amgen’s Enbrel — remain approved by FDA but still have not launched because of legal settlements.

Hal Barron (GSK via YouTube)

GSK R&D chief Hal Bar­ron jumps ship to run a $3B biotech start­up, Tony Wood tapped to re­place him

In a stunning switch, GlaxoSmithKline put out word early Wednesday that R&D chief Hal Barron is exiting the company after 4 years — a relatively brief run for the man chosen by CEO Emma Walmsley in late 2017 to turn around the slow-footed pharma giant.

Barron is being replaced by Tony Wood, a close associate of Barron’s who’s taking one of the top jobs in Big Pharma R&D. He’ll be closer to home, though, for GSK. Barron has been running a UK and Philadelphia-based research organization from his perch in San Francisco.

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Chamath Palihapitiya and Pablo Legorreta

Bil­lion­aires Chamath Pal­i­hapi­tiya and Pablo Legor­re­ta hatch an $825M SPAC for cell ther­a­py biotech

Three years after Royalty Pharma chief Pablo Legorreta led a group of investors to buy up a pair of biotechs and create a new startup called ProKidney, the biotech is jumping straight into an $825 million public shell created by SPAC king and tech billionaire Chamath Palihapitiya.

ProKidney was founded 6 years ago but really got going at the beginning of 2019 with the $62 million acquisition of inRegen, which was working on an autologous — from the patient — cell therapy for kidney disease. After extracting kidney cells from patients, researchers expand the cells in the lab and then inject them back into patients, aiming to restore the kidneys of patients suffering from CKD.

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Troy Wilson, Kura CEO

FDA lifts par­tial hold on Ku­ra's Phase Ib AML pro­gram as biotech re­dou­bles mit­i­ga­tion ef­forts

Kura Oncology is clear to resume studies for its early-stage leukemia program after the FDA lifted a clinical hold Thursday afternoon.

Regulators had placed the hold on a Phase Ib study of KO-539, an experimental oral treatment for some genetic subsets of acute myeloid leukemia last November after a patient died while taking the drug. Kura expects to begin enrolling patients again imminently, CEO Troy Wilson told Endpoints News.