Vi­tal Ther­a­pies evis­cer­at­ed as PhI­II dis­as­ter forces it to dis­card sole as­set

Vi­tal Ther­a­pies has built its whole op­er­a­tion up­on the cell-based treat­ment for acute liv­er fail­ure it calls ELAD. That foun­da­tion has now col­lapsed.

Rus­sell Cox

The San Diego-based biotech an­nounced that ELAD failed both pri­ma­ry and sec­ondary end­points in a Phase III tri­al, show­ing no sig­nif­i­cant im­prove­ment in over­all sur­vival or pro­por­tion of sur­vivors at study day 91 for pa­tients with se­vere al­co­holic he­pati­tis. See­ing no short path to ap­proval, Vi­tal has de­cid­ed to “cease any fur­ther de­vel­op­ment of the ELAD Sys­tem and ex­plore strate­gic op­tions.”

In­vestors fol­lowed the ther­a­py out the door, send­ing Vi­tal shares $VTL down more than 88% in pre-mar­ket trad­ing. It’s now trad­ing at $0.70, a frac­tion of its IPO price in 2014.

Some may have seen this com­ing. Vi­tal pushed its way in­to Phase III clinch­ing a post hoc sub­set analy­sis of an oth­er­wise failed Phase II study, which con­vinced ex­ecs they stood a good chance of suc­cess if they on­ly fo­cused on younger pa­tients with a less se­vere form of the dis­ease.

The year was 2015, and the com­pa­ny had $62 mil­lion in the bank to com­plete a new tri­al, meant to yield re­sults that would sup­port a BLA fil­ing in 2019. As of June 30, $31.1 mil­lion of that re­mained in­tact, which they ex­pect­ed to last un­til the first quar­ter of 2019.

ELAD, short for ex­tra­cor­po­re­al liv­er as­sist sys­tem, fea­tures hu­man liv­er-de­rived cells and a de­vice to pump the pa­tient’s blood through these VTL-C3A cells, then back to their body. Vi­tal once drummed up hopes for the drug-de­vice in oth­er in­di­ca­tions — acute flares of vi­ral he­pati­tis B, trans­plant set­tings, and post-sur­gi­cal main­te­nance for liv­er can­cer pa­tients.

“Al­though we did not achieve the out­come we were hop­ing for, we would like to thank those who made this tri­al pos­si­ble, in­clud­ing our in­ves­ti­ga­tors and their staffs, the pa­tients who were en­rolled and their fam­i­lies, and all Vi­tal Ther­a­pies em­ploy­ees,” said CEO Rus­sell Cox, a Jazz Phar­ma vet who took the helm just be­fore the tri­al launched.

Cell and Gene Con­tract Man­u­fac­tur­ers Must Em­brace Dig­i­ti­za­tion

The Cell and Gene Industry is growing at a staggering 30% CAGR and is estimated to reach $14B by 20251. A number of cell, gene and stem cell therapy sponsors currently have novel drug substances and products and many rely on Contract Development Manufacturing Organizations (CDMO) to produce them with adherence to stringent regulatory cGMP conditions. Cell and gene manufacturing for both autologous (one to one) and allogenic (one to many) treatments face difficult issues such as: a complex supply chain, variability on patient and cellular level, cell expansion count and a tight scheduling of lot disposition process. This complexity affects quality, compliance and accountability in the entire vein-to-vein process for critically ill patients.

A lab technician works during research on coronavirus at Johnson & Johnson subsidiary Janssen Pharmaceutical in Beerse, Belgium, Wednesday, June 17, 2020. (Virginia Mayo/AP Images)

UP­DAT­ED: End­points News ranks all 28 play­ers in the Covid-19 vac­cine race. Here's how it stacks up to­day

(This piece was last updated on August 13. Endpoints News will continue to track the latest developments through the FDA’s marketing decisions.)

The 28 players now in or close to the clinical race to get a Covid-19 vaccine over the finish line are angling for a piece of a multibillion-dollar market. And being first — or among the leaders — will play a big role in determining just how big a piece.

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Cal­lid­i­tas bets up to $102M on a biotech buy­out, snag­ging a once-failed PBC drug

After spending years developing its oral formulation of the corticosteroid budesonide, Sweden’s Calliditas now has its sights set on the primary biliary cholangitis field.

The company will buy out France-based Genkyotex, and it’s willing to bet up to €87 million ($102 million) that Genkyotex’s failed Phase II drug, GKT831, will do better in late-stage trials.

Under the current agreement, Calliditas $CALT will initially pay €20.3 million in cash for 62.7% of Genkyotex (or €2.80 a piece for 7,236,515 shares) in early October, then circle back for the rest of Genkyotex’s shares under the same terms. If nothing changes, the whole buyout will cost Calliditas €32.3 million, plus up to  €55 million in contingent rights.

Inside FDA HQ (File photo)

The FDA just ap­proved the third Duchenne MD drug. And reg­u­la­tors still don’t know if any of them work

Last year Sarepta hit center stage with the FDA’s controversial reversal of its CRL for the company’s second Duchenne muscular dystrophy drug — after the biotech was ambushed by agency insiders ready to reject a second pitch based on the same disease biomarker used for the first approval for eteplirsen, without actual data on the efficacy of the drug.

On Wednesday the FDA approved the third Duchenne MD drug, based on the same biomarker. And regulators were ready to act yet again despite the lack of efficacy data.

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Stéphane Bancel speaks to President Donald Trump at the White House meeting on March 2 (AP Images)

UP­DAT­ED: Mod­er­na of­fers steep dis­count in US sup­ply deal — but still takes the crown with close to $2.5B in vac­cine con­tracts

The US pre-order for Moderna’s Covid-19 vaccine is in.

Operation Warp Speed is reserving $1.525 billion for 100 million doses of Moderna’s Phase III mRNA candidate, rounding out to about $15 per dose — including $300 million in incentive payments for timely delivery. Given that Moderna has a two-dose regimen, it’s good for vaccinating 50 million people. The US government also has the option to purchase another 400 million doses for a total of $6.6 billion, or $16.5 per dose.

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James Wilson, WuXi Global Forum at JPM20

FDA puts up a red light for Pas­sage Bio’s first gene ther­a­py pro­gram, de­lay­ing a pro­gram from James Wilson's group at Penn

Gene therapy pioneer James Wilson spearheaded animal studies demonstrating the potential of new treatments injected directly into the brain, looking to jumpstart a once-and-done fix for an extraordinarily rare disease called GM1 gangliosidosis in infants. His team at the University of Pennsylvania published their work on monkeys and handed it over to Passage Bio, a Wilson-inspired startup building a pipeline of gene therapies — with an IND for PBGM01 to lead the way.

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Phase III read­outs spell dis­as­ter for Genen­tech’s lead IBD drug

Roche had big plans for etrolizumab. Eyeing a hyper-competitive IBD and Crohn’s market where they have not historically been a player, the company rolled out 8 different Phase III trials, testing the antibody for two different uses across a range of different patient groups.

On Monday, Roche released results for 4 of those studies, and they mark a decided setback for both the Swiss pharma and their biotech sub Genentech, potentially spelling an end to a drug they put over half-a-decade and millions of dollars behind.

Qi­a­gen in­vestors spurn Ther­mo Fish­er’s takeover of­fer, de­rail­ing a $12B+ deal

Thermo Fisher Scientific had announced an $11.5 billion takeover of Dutch diagnostics company Qiagen back in March, but the deal apparently did not sit well with Qiagen investors.

After getting hammered by critics who contended that Qiagen $QGEN was worth a lot more than what Thermo Fisher wanted to spend, investors turned thumbs down on the offer — derailing the buyout even after Thermo Fisher increased its offer to $12.6 billion in July. Qiagen’s share price has been boosted considerably by Covid-19 as demand for its testing kits surged.

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Xuefeng Yu in Hong Kong, 2019 (Imaginechina via AP Images)

CanSi­no reaps $748M wind­fall from Shang­hai IPO — as it warns Covid-19 vac­cine won't be a huge mon­ey mak­er

CanSino began the year with a clear goal to secure a secondary listing on Shanghai’s STAR market. Then something more urgent came along: As a rising vaccine developer on a mission to bring global standard immunizations to China, it heeded the call to make a vaccine to protect against a virus that would paralyze the whole world.

Xuefeng Yu and his team managed to keep doing both.

More than a month after CanSino’s Covid-19 vaccine candidate is authorized for military use in China, the Hong Kong-listed company has made a roaring debut in Shanghai. It fetched $748 million (RMB$5.2 billion) by floating 24.8 million shares, and soared 88% on its first trading day.