With $1.2B NASH deal be­hind them, Nim­bus rais­es $65M for I/O, oth­er R&D

You might re­mem­ber Nim­bus for the mas­sive NASH deal it inked with Gilead a cou­ple years back — earn­ing a re­mark­able $400 mil­lion up­front. The com­pa­ny’s bread and but­ter has been team­ing up with heavy­weights like Gilead, Cel­gene, and Genen­tech to take its promis­ing ros­ter of drugs through de­vel­op­ment. But now, Nim­bus is step­ping out with plans to push for­ward its own in­ter­nal set of pro­grams — and the com­pa­ny’s back­ers just put up $65 mil­lion to fi­nance the work.

Don Nichol­son

Nim­bus’ CEO Don Nichol­son tells me the com­pa­ny want­ed to make a bet on some of its un­en­cum­bered pro­grams: a STING ag­o­nist ap­plied to im­muno-on­col­o­gy (not to be con­fused with the STING an­tag­o­nist part­nered with Cel­gene) and an un­named can­di­date Nichol­son is keep­ing un­der wraps.

The first thing that struck me about Nim­bus’ new fundrais­ing round is that the com­pa­ny al­ready seemed well-cap­i­tal­ized. It’s had back­ing from the likes of At­las Ven­ture, SR One, Lil­ly Ven­tures and even Bill Gates, among oth­ers. And af­ter earn­ing its $400 mil­lion up­front pay­ment from Gilead back in 2016, it quick­ly scored an­oth­er $200 mil­lion just six months af­ter. That’s half of a deal that could to­tal $1.2 bil­lion if all mile­stones are met, and Nichol­son says those aren’t post-mar­ket­ing biobucks — they’re “fair­ly prox­i­mal” mile­stones.

But Nichol­son said the “li­on’s share” of the Gilead mon­ey went back to his in­vestors, as the com­pa­ny’s work­ing hard to keep Nim­bus off the pub­lic mar­kets (for now). While most VCs push for IPOs to get pay­outs, Nichol­son said his syn­di­cate was hap­py with their part­ner­ship ap­proach in­stead.

“The deals we did with Gilead and hope­ful­ly Cel­gene are very pos­i­tive for our in­vestors,” Nichol­son said. “That was sub­stan­tial­ly more mon­ey than most biotechs will make when they do a pub­lic of­fer­ing.”

Jeb Keiper

The com­pa­ny’s CFO Jeb Keiper not­ed in its press re­lease that Nim­bus al­ready had a “nine fig­ure” bal­ance sheet of re­sources to work with. Why raise mon­ey now? Nichol­son said it has a lot to do with com­pa­ny struc­ture (its as­sets live in sep­a­rate com­pa­nies un­der one um­brel­la LLC), and its in­ter­nal pro­grams need­ed their own cap­i­tal to get go­ing.

Al­though Nim­bus is keep­ing its cards close to the vest, Nichol­son did say its pro­grams will fo­cus on meta­bol­ic dis­or­ders, on­col­o­gy, and im­munol­o­gy.

For this re­cent fi­nanc­ing round, all of Nim­bus’ pre­vi­ous in­vestors par­tic­i­pat­ed, in­clud­ing At­las Ven­ture, SR One, Lil­ly Ven­tures, Bill Gates, Pfiz­er Ven­ture In­vest­ments, Light­stone Ven­tures, and Schrödinger.

Jake Van Naarden, Josh Bilenker, Nisha Nanda (Credit: Loxo, Aisling Capital)

Josh Bilenker and his Loxo crew are tak­ing the reins on on­col­o­gy R&D at Eli Lil­ly, culling the weak and map­ping a new path

Josh Bilenker, Jake Van Naarden and Nisha Nanda came out of Eli Lilly’s $8 billion Loxo Oncology buyout with a bundle of cash and plenty of choices on what they could do next. Start a new company, go public. Live on the beach in 5-star luxury. Contemplate the stars — in their own observatory.

So what are they doing?

They formed a new executive team that is taking over the management of Eli Lilly’s hundreds-strong oncology R&D group — essentially using Loxo as a base for a bold new experiment in Big Pharma R&D in an attempt to create a true biotech environment with the deep pockets of a top-15 industry player. They’ve recruited David Hyman from Memorial Sloan Kettering to join the team as chief medical officer. And the mandate includes culling out the oncology pipeline, highlighting their star prospects and going after new programs wherever they can find the best prospects.

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J&J team shows off 'break­through' BC­MA CAR-T da­ta, and that could cause a big headache at blue­bird and Bris­tol-My­ers

Just hours after J&J’s oncology team bragged about scoring a breakthrough therapy designation for their BCMA CAR-T drug, they pulled the wraps off of the multiple myeloma data for JNJ-4528 that impressed the FDA. And it’s easy to see why they may well be on a short path to a landmark approval — which may well be making the rival team at bluebird/Bristol-Myers more than a little nervous.

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J&J's Mathai Mammen at an Endpoints News event in Boston, June 2018 (Photo: Rob Tannenbaum for Endpoints News)

J&J fronts $750M cash to grab a failed can­cer drug that’s been re­pur­posed as a pow­er­ful an­ti-in­flam­ma­to­ry

J&J has stepped up with one of its blockbuster drug buys, agreeing to pay Austin-based XBiotech $XBIT $750 million in cash and up to $600 million more in milestones for their late stage-ready anti-inflammatory drug bermekimab — which some longtime biotech observers may recognize as a failed cancer therapy with a disaster-prone past.

The drug targets the IL-1a pathway. J&J $JNJ R&D chief Mathai Mammen is cutting a check for a drug that has produced positive mid-stage data in patients suffering from a skin condition called hidradenitis suppurativa with another mid-stage program underway for atopic dermatitis.

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One of Wall Street’s most high-pro­file hedge funds push­es Alex­ion's CEO to the auc­tion block — and he's not budg­ing

Fresh off buying Barnes & Noble and prodding AT&T with some heavy-handed criticism after picking up a $3.2 billion stake in the company, the activist — and supremely high profile — hedge fund Elliott Management has stepped up with some M&A advice for Alexion’s management team.
And the execs on the team $ALXN are giving them a polite — but very firm — stiff arm Friday morning.
In a release out early Friday, the big biotech said that the Elliott team had been in touch to encourage them to sell the company. But that’s not on the agenda.

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Un­lock the full End­points ex­pe­ri­ence for your com­pa­ny — and sup­port our mis­sion of in­de­pen­dent bio­phar­ma re­port­ing

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Jasper Ther­a­peu­tics launch­es out of Stan­ford with new ap­proach to stem cell treat­ment

The first girl in the trial came in with chronic diarrhea and the immune system of an untreated HIV patient. Born with a rare genetic disease that impeded her ability to make B and T cells, she had once been given a stem cell transplant but it didn’t take.  Back in the hospital, she was injected with a new experimental antibody and then given a new stem cell transplant. Soon, she gained weight. The diarrhea stopped.

Ex-Cel­gene ex­ec Ter­rie Cur­ran puts her Phath­om team in place; Car­away taps Mar­tin Williams as CEO

→ Gastrointestinal disease-focused Phathom Pharmaceuticals has shaken up its leadership team. The company has tapped former Celgene exec Terrie Curran as CEO, succeeding David Socks, who is transitioning to interim CFO. Curran was president of Celgene’s global inflammation and immunology franchise — helping with the sale of Otezla for $13.4 billion to Amgen — and has held a previous stint at Merck. In addition to Curran, the company also welcomed former Omeros CMO Eckhard Leifke as CMO, ex-Celgene exec Joseph Hand as chief administrative officer, and former general counsel for Cyclerion Therapeutics Larry Miller as general counsel. They also replaced Chris Slavinsky on the board with Takeda exec Asit Parikh.

UCB buffs up in block­buster pso­ri­a­sis race as bimek­izum­ab beats Hu­mi­ra in head-to-head

Just weeks after boasting head-to-head victories over first placebo and then J&J’s IL-23 contender Stelara in clearing psoriasis, the results are in for UCB’s last Phase III trial, in which bimekizumab went up against the world’s best-selling drug.

Only topline results are provided for today’s readout of the BE SURE study, so we won’t find out just how superior bimekizumab proved against Humira on the co-primary endpoints — standard scores known as PASI90 and IGA measuring the impact and severity of the disease — until a scientific conference in 2020.

With EMA re­view in progress, No­var­tis un­veils more pos­i­tive da­ta on asth­ma ther­a­py

Having made its marketing pitch to the EU regulator, Novartis on Thursday unveiled positive pivotal study data supporting the use of its inhaled asthma treatment.

The therapy, QMF149, consists of the long-acting beta-agonist, or LABA, called indacaterol acetate and the corticosteroid mometasone furoate. In the 2,216-patient, 52-week PALLADIUM study, asthma patients either received a medium or high dose of the Novartis therapy (150/160 μg; 150/320 μg) or mometasone furoate (MF) alone.