What's big­ger than a uni­corn? Sa­mumed stuns yet again as an­ti-ag­ing pipeline draws $438M at $12B val­u­a­tion

Sa­mumed came out with a bang a cou­ple years ago, when it bold­ly an­nounced a cou­ple of an­ti-ag­ing pro­grams and a $12 bil­lion val­u­a­tion. The San Diego com­pa­ny, which op­er­at­ed in stealth through much of its first decade, had no late-stage pro­grams and no prod­ucts on the mar­ket at the time, caus­ing quite the hub­bub when it claimed uni­corn sta­tus.

To­day, that com­pa­ny has added $438 mil­lion of eq­ui­ty back­ing to its cof­fers, clos­ing a mega-round that adds to its pre­vi­ous­ly raised $212 mil­lion. And yet again, the com­pa­ny an­nounced its pre-mon­ey val­u­a­tion for the lat­est round at a whop­ping $12 bil­lion. Even in these go-go days of biotech, the dol­lars are eye-pop­ping.

The fig­ure will cer­tain­ly raise eye­brows, but that’s noth­ing new for Os­man Kibar, Sa­mumed’s pas­sion­ate and col­or­ful CEO. I met with Kibar back in 2016, tour­ing the rather qui­et halls of Sa­mumed’s head­quar­ters. His en­thu­si­asm for the com­pa­ny’s in­ves­ti­ga­tion­al os­teoarthri­tis drug left an im­pres­sion on me, as he fer­vent­ly sketched graphs on a white­board to help me un­der­stand the WNT path­way.

“We’re sit­ting on a gold­mine, and this is on­ly the tip of the ice­berg,” Kibar said at the time. “If our strat­e­gy was to sell, no one could af­ford us.”

Found­ed in 2008, Sa­mumed now has eight pro­grams in its pipeline: two Phase II drugs, five in Phase I, and one pre­clin­i­cal. Its late-stage pro­grams are in os­teoarthri­tis and an­dro­ge­net­ic alope­cia (hair loss).

The com­pa­ny’s Phase II tri­al in OA en­rolled 455 pa­tients and went for a year. This pa­tient pop­u­la­tion in­cludes over 20 mil­lion Amer­i­cans who suf­fer from car­ti­lage wear­ing away in their joints and the re­sult­ing pain as­so­ci­at­ed with move­ment. There’s no re­al treat­ment be­sides pain med­ica­tion, which can ex­ac­er­bate the prob­lem (feel­ing less pain, pa­tients tend to move around more and fur­ther wear down that car­ti­lage). Af­ter re­ceiv­ing a sin­gle in­jec­tion, pa­tients showed car­ti­lage growth at the me­di­al joint.

But in Sa­mumed’s very brief press re­lease on this new round of fund­ing, the com­pa­ny did not men­tion where the mon­ey came from. That caught my at­ten­tion, be­cause when I first wrote about Sa­mumed, I thought the com­pa­ny’s lead in­vestors were odd choic­es: IKEA’s pri­vate ven­ture firm, anony­mous high-net-worth in­di­vid­u­als and a sin­gle ven­ture cap­i­tal firm called Vick­ers Ven­ture Part­ners. The biggest in­vestors are a fur­ni­ture com­pa­ny and a ven­ture firm with no his­to­ry of drug dis­cov­ery in­vest­ments. How could they rec­og­nize a valu­able in­vest­ment when they saw one?

I reached out to Kibar this morn­ing to see who was in this new syn­di­cate. Kibar replied with this:

Our ex­ist­ing in­vestors par­tic­i­pat­ed about ~15-20% of this round, the rest are new. And we went with pri­vate cap­i­tal again (fam­i­ly of­fices, high net worth in­di­vid­u­als, and sov­er­eign funds), no VC/PE (ex­cept Vick­ers).

Fin­ian Tan, chair­man at Vick­ers, at the time ex­plained that Sa­mumed was the first of many in­vest­ments in drug dis­cov­ery. Tan him­self is no rook­ie in health­care. He’s served as ex­ec­u­tive deputy chair­man of Sin­ga­pore’s Na­tion­al Sci­ence and Tech­nol­o­gy Board, as well as on the boards of The Na­tion­al Can­cer Cen­ter of Sin­ga­pore, ven­ture firm Life Sci­ences In­vest­ment, and SingHealth, the biggest health care group in Sin­ga­pore.

Though not a sci­en­tist him­self, he ap­par­ent­ly has a knack for eye­ing good in­vest­ments. Tan was an ear­ly in­vestor of Baidu, known as the “Google of Chi­na” and cur­rent­ly val­ued at $80 bil­lion. Tan said his ven­ture firm made the biggest en­try in­vest­ment it’s ever made with Sa­mumed due to the com­pa­ny’s unique­ly high re­ward vs. risk pro­file. The last time he made a sim­i­lar in­vest­ment was Baidu it­self, Tan said.

Sa­mumed’s drug dis­cov­ery plat­form could be “a break­through of huge pro­por­tions,” Tan said in an email. “The im­pact on hu­mankind would be an or­der of mag­ni­tude we have not seen since (Alexan­der) Flem­ing’s dis­cov­ery of an­tibi­otics (in the 1920s).”

Time will tell.

Kibar said Sa­mumed is tar­get­ing its first ap­proval with­in the next few years.

“This round takes us there (in­clud­ing all our pro­grams, clin­i­cal and pre­clin­i­cal pipeline), plus launch cost, plus some ex­tra cush­ion,” Kibar wrote in an email.


Im­age: Os­man Kibar.

Qual­i­ty Con­trol in Cell and Gene Ther­a­py – What’s Re­al­ly at Stake?

In early 2021, Bluebird Bio was forced to suspend clinical trials of its gene therapy for sickle cell disease after two patients in the trial developed cancer. As company scientists rushed to assess whether there was any causal link between the therapy and the cancer cases, Bluebird’s stock value plummeted – as did those of multiple other biopharma companies developing similar therapies.

While investigations concluded that the gene therapy was unlikely to have caused cancer, investors and the public may be more skittish regarding the safety of gene and cell therapies after this episode. This recent example highlights how delicate the fields of cell and gene therapy remain today, even as they show great promise.

Chris Gibson (Photo By Vaughn Ridley/Sportsfile for Web Summit via Getty Images)

Re­cur­sion founders gin for­tunes as IPO back­ers show­er $436M on one of the biggest boasts in AI -- based on some very small deals

In the AI drug development world, boasting often comes with the territory. Yet few can rival Recursion when it comes to claiming the lead role in what company execs like to call the industrialization of drug development, with promises of continued exponential growth in the number of drugs it has in the pipeline.

On Friday, the Salt Lake City-based biotech translated its unicorn-sized boasts into a killer IPO, pricing more than 24 million shares at the high end of its range and bringing in $436 million — with a large chunk of that promised by some deep-pocket backers.

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Tillman Gerngross (Adagio)

Till­man Gern­gross' Covid-19 an­ti­body moon­shot scores $336M with the help of new ace CFO. Is an IPO next?

Less than a year into its existence, serial biotech entrepreneur Tillman Gerngross’ antibody play Adagio has raced ahead into a pivotal trial for its lead drug for Covid-19 on the back of some very promising preclinical data. Now, crossover investors led by Peter Kolchinsky at RA are rolling up the Brinks truck — and that could spell an IPO in the offing for Adagio.

Adagio has bagged $336 million as part of a Series C round led by RA Capital to advance lead single-shot antibody ADG20 through a pivotal Phase I/II/III trial for the treatment of mild to moderate Covid-19 patients at high risk of infection, the biotech said Monday.

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UP­DAT­ED: New Kaiser analy­sis shows how lim­it­ing price ne­go­ti­a­tions to tar­get­ed drugs may bet­ter fo­cus up­com­ing leg­is­la­tion

As Congress considers whether to adopt sweeping new legislation to lower prescription drug prices across the board, the Kaiser Family Foundation is out with a new report on Monday showing how a more targeted approach on a subset of drugs might be a more efficient way to save government funds.

“This analysis shows that Medicare Part D and Part B spending is highly concentrated among a relatively small share of covered drugs, mainly those without generic or biosimilar competitors,” wrote Juliette Cubanski, deputy director of the program on Medicare policy at KFF, and Tricia Neuman, SVP of KFF. “Focusing drug price negotiation or reference pricing on a subset of drugs that account for a disproportionate share of spending would be an efficient use of administrative resources, though it would also leave some potential savings on the table.”

Biotech's IPO raise ap­proach­es $5.5B as Nas­daq con­tin­ues to prove fruit­ful with 2 de­buts and three new fil­ings

Editor’s note: Interested in following biopharma’s fast-paced IPO market? You can bookmark our IPO Tracker here.

It was another busy week in the biotech IPO market as the second quarter continues to churn out significant investment into the sector.

Recursion led the way with a $436 million raise on Friday, pricing its IPO at $18, the high end of its range. Our own John Carroll went in depth on that raise over the weekend. Also on Friday, preclinical cancer biotech Biomea Fusion debuted with a $153 million raise priced at its own high end of $17 per share. The two companies helped push the combined IPO raise for 2021 to nearly $5.5 billion.

When is a drug re­al­ly a de­vice? Court knocks down FDA ap­peal in try­ing to sort that grey area

It’s always a surprise when a court has to step in to tell the FDA that it erred in performing one of its main duties: classifying whether a medical product is drug or a device.

But that’s what the US Court of Appeals for the District of Columbia did on Friday, making clear to the world’s top drug regulator that Genus Medical Technologies’ contrast agent barium sulfate (also known as Vanilla SilQ) should not be considered a drug, as the FDA had said, but a medical device.

Q1: A flood of in­vestor cash drove biotech's num­bers to new record highs, and the tor­rent of cash is mov­ing up­stream fast

If you thought biotech was booming last year, wait until you get a load of the numbers from Q1 2021.

On virtually every level, with one exception, the money engine was working around the clock in the first 3 months of this year. Venture capital has reached such a fever peak that the average B round now weighs in at an average mega-weight value of $100 million. The money flow is also finding its way to the mouth of the R&D river, where discovery work now merits the big bucks instead of cautionary seed funds.

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Jami Rubin (EQRx)

Ja­mi Ru­bin, once fa­bled for grilling bio­phar­ma ex­ecs, de­camps to head fi­nance at drug pric­ing dis­rupter

As Goldman Sachs’ top pharmaceutical analyst, Jami Rubin was known for asking the tough questions. Now, as she takes the lead on EQRx’s mission to rewrite the rules of drug pricing, we’ll see how good her answers are.

Rubin made the jump to biotech on April 5, becoming EQRx’s new CFO, the company said Monday. She’s coming from PJT Partners, where she’s been a partner providing strategic guidance for biotech and pharmaceutical companies for the last couple years. With EQRx’s recent $500 million Series B round in the books, it wouldn’t be a surprise if she was already lining up a public debut.

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Seagen gets Au­gust PDU­FA for Pad­cev ex­pan­sions; Adap­tate pulls in new cash for gam­ma delta T cell an­ti­bod­ies

Seagen is riding the wave of two new priority reviews straight to the FDA.

The Bothell, WA-based biotech and their partners at Astellas announced Monday that two supplemental BLAs for Padcev had been accepted by US regulators. FDA has set Aug. 17 as the PDUFA date for the reviews.

“With our recent regulatory submissions, we intend to provide the highest level of clinical evidence supporting Padcev use — overall survival data from a randomized Phase III trial — and expand availability in multiple countries where there is unmet medical need,” said Astellas oncology chief Andrew Krivoshik.