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.

Grow­ing ac­cep­tance of ac­cel­er­at­ed path­ways for nov­el treat­ments: but does reg­u­la­to­ry ap­proval lead to com­mer­cial suc­cess?

By Mwango Kashoki, MD, MPH, Vice President-Technical, and Richard Macaulay, Senior Director, of Parexel Regulatory & Access

In recent years, we’ve seen a significant uptake in the use of regulatory options by companies looking to accelerate the journey of life-saving drugs to market. In 2018, 73% of the novel drugs approved by the U.S. Federal Drug Administration (FDA) were designated under one or more expedited development program categories (Fast Track, Breakthrough Therapy, Priority Review, and Accelerated Approval).ᶦ

Sanofi out­lines big API plans as coro­n­avirus out­break re­port­ed­ly threat­ens short­age of 150 drugs

As the world becomes increasingly dependant on Asia for the ingredients of its medicines, Sanofi sees business to be done in Europe.

The French drugmaker said it’s creating the world’s second largest active pharmaceutical ingredients (API) manufacturer by spinning out its six current sites into a standalone company: Brindisi (Italy), Frankfurt Chemistry (Germany), Haverhill (UK), St Aubin les Elbeuf (France), Újpest (Hungary) and Vertolaye (France). They have mapped out €1 billion in expected sales by 2022 and 3,100 employees for the new operations headquartered in France.

Bio­gen touts new ev­i­dence from the gene ther­a­py com­pa­ny it wa­gered $800M on

A year ago, Biogen made a big bet on a small gene therapy company. Now they have new evidence one of their therapies could work.

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Anthony Fauci (AP Images)

UP­DAT­ED: NIH-part­nered Mod­er­na ships off its PhI-ready coro­n­avirus vac­cine can­di­date to a sea of un­cer­tain­ty

Off it goes.

Moderna has shipped the first batch of its mRNA vaccine against SARS-CoV-2 from its manufacturing facility in Norwood, Massachusetts, to the National Institute of Allergy and Infectious Diseases in Bethesda, Maryland, for a pioneering Phase I study.

It’s a hectic race against time. In the 42 days since Moderna selected the sequence they would use to develop their vaccine — a record time, no less — the number of confirmed cases around the world has surged astronomically from a few dozen to over 80,000, per WHO and Johns Hopkins estimates.

The candidate that they came up with, mRNA-1273, encodes for a prefusion stabilized form of the spike protein, which gives the virus its crown shape and plays a key role in transmission. The Coalition for Epidemic Preparedness Innovations, the Oslo-based group better known as CEPI, funded the manufacture of this batch.

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In fi­nal re­port, ICER ap­pears to have a change of heart on new acute mi­graine ther­a­pies

ICER appears to have reversed course on the fresh crop of acute migraine therapies.

The cost-effectiveness watchdog in November issued a draft report suggesting that existing generic medicines are more effective and cheaper than Allergan’s December-approved CGRP ubrogepant, Biohaven rival molecule, rimegepant (which is under FDA review), and Lilly’s October-sanctioned lasmiditan, which binds to 5-HT1F receptors.

Bi­cy­cle Ther­a­peu­tics takes Roche's Genen­tech on an up to $2B im­muno-on­col­o­gy ride

Bicycle Therapeutics — which is developing a new class of chemically synthesized drugs designed to be pharmacologically as active as biologics, yet manufactured as small molecules —  has scored another big partner: Roche’s Genentech.

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When drug val­ue as­sess­ment meets re­al-world ev­i­dence: ICER en­lists Ae­tion in pric­ing eval­u­a­tion

In a union of two of the hottest trends in the US biopharma world, ICER is teaming up with a high-profile company to integrate real-world evidence in their assessment of treatment value.

The drug pricing watchdog — formally the Institute for Clinical and Economic Review — said it will utilize Aetion’s evidence platform in “select upcoming assessments” and their new 24-month re-evaluations of drugs granted accelerated approval by the FDA.

Anthony Fauci, AP Images

First US Covid-19 tri­als set to get un­der­way in Ne­bras­ka and Wash­ing­ton, backed by NIH

The first US clinical trials on the novel coronavirus are scheduled to get underway next month at the University of Nebraska Medical Center, where American passengers were taken after being evacuated from the Diamond Princess cruise ship, and at the Kaiser Permanente Washington Health Research Institute. Both trials are sponsored by the NIH’s National Institute for Allergy and Infectious Diseases, which has led the US’s medical response to the outbreak.

UP­DAT­ED: NGM Bio takes leap for­ward in crowd­ed NASH field

South San Francisco-based NGM Bio may have underwhelmed with its interim analysis of a key cohort from a mid-stage NASH study last fall — but stellar topline data unveiled on Monday showed the compound induced significant signs of antifibrotic activity, NASH resolution and liver fat reduction, sending the company’s stock soaring.

There are an estimated 50+ companies focused on developing drugs for non-alcoholic steatohepatitis, or NASH, a common liver disease that has long flummoxed researchers. The first wave of NASH drug developers struggled with efficacy as well as safety — and companies big and small have crashed and burned.

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