Trump’s bud­get takes a big bite out of the NIH, with big new fees for bio­phar­ma

Pres­i­dent Don­ald Trump’s new bud­get is hit­ting the ta­ble to­day and bio­med­ical re­search is out, FDA fees are up and mil­i­tary spend­ing is in.

The Wash­ing­ton Post got the de­bate start­ed ear­ly Thurs­day, re­veal­ing that the new bud­get in­cludes an enor­mous $5.8 bil­lion cut in the NIH’s bud­get, close to 20%.

To get that, Trump’s team en­vi­sions a ma­jor re­or­ga­ni­za­tion of the NIH, which funds thou­sands of re­search projects and pro­vides much of the foun­da­tion work for pre­clin­i­cal drug re­search. The NIH has al­so been mov­ing more in­to trans­la­tion­al ef­forts aimed at vault­ing these pro­grams ahead, with an eye to see­ing more drugs point­ed to the mar­ket.

The de­tails are lack­ing, but the Post high­lights one pro­gram that is clear­ly on the chop­ping block. The Fog­a­r­ty In­ter­na­tion­al Cen­ter, which builds ties among re­search in­sti­tutes, is slat­ed to be axed in the bud­get. But that’s just a drop in the buck­et if any­thing close to these kinds of cuts are made. A dras­tic change at the NIH would like­ly elim­i­nate a large num­ber of aca­d­e­m­ic re­search ef­forts around the coun­try.

Reuters, mean­while, re­ports that the bud­get in­cludes an added bill for bio­phar­ma. The FDA is sup­posed to get $2 bil­lion of its bud­get from the in­dus­try fees it charges. That’s dou­ble what the in­dus­try cur­rent­ly pays.

The pay­back is a fre­quent­ly promised im­prove­ment in speed­ing drug de­vel­op­ment, some­thing most peo­ple in the in­dus­try still view with deep skep­ti­cism. First, the agency is gen­er­al­ly seen as re­spon­sive now, though ca­pa­ble of im­prove­ment, with lit­tle ap­petite for rad­i­cal change. Sec­ond, the promised re­form may not come close to hav­ing the kind of pos­i­tive ef­fect that Trump keeps in­sist­ing he can de­liv­er al­most overnight.

The fees, though, would be very re­al.

It’s still ear­ly, but sci­en­tif­ic in­ter­ests in the coun­try, which re­cent­ly won a hard-fought in­crease of the NIH bud­get, will come out swing­ing on this one. And they have some al­lies in both ma­jor par­ties. Don’t look for in­dus­try lob­by­ing groups to cheer any in­crease in fees, ei­ther. But with ma­jor tax re­form on the line, crit­i­cism may be mut­ed in pub­lic fo­rums.

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.

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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Mickey Kertesz, KidsandArtOrg via YouTube

Soft­Bank's newest, $165M biotech in­vest­ment looks for in­fec­tious traces in the blood

SoftBank has found its newest biotech investment.

The Japanese bank has invested $165 million into Karius, a company that uses blood tests to diagnose infectious diseases, as part of its new Vision Fund 2. The full scope of the new fund has yet to be announced, but the first and newly-beleaguered Vision Fund poured $100 billion into technology companies, including the biotechs Vir Biotechnology and Roivant and the sequencing company 10x Genomics.

Methicillin-resistant Staph aureus (Shutterstock)

FDA grants ‘break­through’ sta­tus to an­tibi­ot­ic al­ter­na­tive as Con­tra­Fect rush­es to join fight against su­per­bug

An experimental drug that promises to be the first anti-infective agent to prove superior to vancomycin — an antibiotic approved in 1958 — has notched the FDA’s “breakthrough” status.

ContraFect said the designation was based on Phase II data in which exebacase was tested against a superbug known as methicillin-resistant Staph aureus, or MRSA. In a subgroup analysis, the clinical responder rate at day 14 was 42.8% higher than that among those treated with standard of care, the company said (p=0.010).

Zhong Nanshan, CGTN via YouTube

Har­vard joins coro­n­avirus fight with $115 mil­lion and a high-pro­file Chi­nese part­ner

For two months, as the novel coronavirus swelled from a few early cases tied to a Wuhan market to a global epidemic, most of the world’s focus and dollars have flowed toward emergency initiatives: building vaccines at a record pace, plucking experimental antivirals out of freezers to see what sticks and immunizing mice for new antibodies.

Now a new and well-funded collaboration between Harvard and a top Chinese research institute will play the long game. In a 5-year, $115 million initiative backed by China Evergrande Group, researchers from the Harvard Medical School, Harvard T.H. Chan School of Public Health and Guangzhou Institute for Respiratory Health will study the virus in an effort to develop therapies against infections by the novel coronavirus, known as SARS–CoV-2, and to prevent new ones.

No­var­tis gets a boost in block­buster mul­ti­ple scle­ro­sis race with Roche

In the first step of what’s likely to be a long and uphill battle for the drugmaker, the FDA has accepted Novartis’s BLA submission for a new multiple sclerosis drug and given it priority review. The PDUFA date for the potential blockbuster drug is in June.

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Juergen Horn

An­i­mal health vet Juer­gen Horn makes new an­ti­body play for pets, rak­ing $15M in Se­ries A haul

Zoetis forked over $85 million in 2017 to acquire Nexvet Biopharma and its pipeline of monoclonal antibodies. Juergen Horn, Nexvet’s former chief product development officer, has now secured $15 million for his own biologic company for animals: Invetx.

Buoyed by emerging advances in gene therapies for humans, scientists have started looking at harnessing the technology for animals setting up companies such as Penn-partnered Scout Bio and George Church-founded Rejuvenate Bio. But akin to Nexvet, Invetx is working on leveraging the time-tested science of monoclonal antibodies to treat chronic diseases that afflict man’s best friend.

As coro­n­avirus out­break reach­es 'tip­ping point,' GSK lends ad­ju­vant tech to Chi­nese part­ner armed with pre­clin­i­cal vac­cine

As the coronavirus originating out of Wuhan spreads to South Korea, Italy and Iran, stoking already intense fears of a pandemic, GlaxoSmithKline has found another pair of trusted hands to place its adjuvant system. China’s Clover Biopharmaceuticals will add the adjuvant to its preclinical, protein-based vaccine candidate against SARS-CoV-2.

Clover, which is based in the inland city of Chengdu, boasts of a platform dubbed Trimer-Tag that produces covalently-trimerized fusion proteins. Its candidate, COVID-19 S-Trimer, resembles the viral spike (S)-protein found in the virus.