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.

Biotech in­vestors and CEOs see two paths to growth, but are they equal­ly vi­able?

The dynamic in the biotech market has been highly volatile in the last few years, from the high peaks immediately after the COVID vaccine in 2021, to the lowest downturns of the last 20 years in 2022. This uncertainty makes calling the exact timing of the market’s turn something of a fool’s errand, according to Dr. Chen Yu, Founder and Managing Partner of TCG Crossover (TCG X). He speaks with RBC’s Noël Brown, Head of US Biotechnology Investment Banking, about the market’s road ahead and two possible paths for growth.

Dave Marek, Myovant CEO

My­ovant board balks as ma­jor­i­ty own­er Sum­it­o­mo swoops in with a $2.5B deal to buy them out

Three years after Sumitomo scooped up Roivant’s 46% stake in the publicly traded Myovant $MYOV as part of a 5-company, $3 billion deal, they’re coming back for the whole thing.

But these other investors at Myovant want more than what the Japanese pharma company is currently offering to pay at this stage.

Sumitomo is bidding $22.75 a share for the outstanding stock, which now represents 48% of the company after Sumitomo bumped its ownership since the original deal with Roivant. Myovant, however, created a special committee on the board, and they’re shaking their heads over the offer.

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Justin Klee (L) and Joshua Cohen, Amylyx co-CEOs (Cody O'Loughlin/The New York Times; courtesy Amylyx)

Ad­vo­cates, ex­perts cry foul over Amy­lyx's new ALS drug, cit­ing is­sues with price, PhI­II com­mit­ment

Not 24 hours after earning the first ALS drug approval in five years, Amylyx Pharmaceuticals’ Relyvrio is already drawing scrutiny. And it’s coming from multiple fronts.

In an investor call Friday morning, Amylyx revealed that it would charge about $158,000 per year, a price point that immediately drew backlash from ALS advocates and some outside observers. The cost reveal had been highly anticipated in the immediate hours after Thursday evening’s approval, though Amylyx only teased Relyvrio would cost less than previously approved drugs.

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Albert Bourla, Pfizer CEO (Gian Ehrenzeller/Keystone via AP)

Can a smart­phone app de­tect Covid? Pfiz­er throws down $116M to find out

What can a cough say about a patient’s illness? Quite a bit, according to ResApp Health — and Pfizer’s listening.

The pharma giant is shelling out about $116 million ($179 million AUD) to scoop up the University of Queensland spinout and its smartphone technology that promises to diagnose Covid and other respiratory illnesses based on cough and breathing sounds, the university announced last week.

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Big Phar­ma heavy­weights seek tweaks to FDA's clin­i­cal out­come as­sess­ment guid­ance

Pfizer, GSK, Janssen, Regeneron, Boehringer Ingelheim and at least a half dozen other companies are calling on the FDA to provide significantly more clarity in its draft guidance from this summer on clinical outcome assessments, which are a type of patient experience.

The draft is the third in a series of four patient-focused drug development guidance documents that the FDA had to create as part of the 21st Century Cures Act, and they describe how stakeholders (patients, caregivers, researchers, medical product developers and others) can collect and submit patient experience data and other relevant information for medical product development and regulatory decision-making.

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Rob Etherington, Clene CEO

Star­tup's gold nanocrys­tal ALS drug flops a PhII tri­al, a re­minder of the dis­ease's ob­sta­cles de­spite Amy­lyx OK

Despite the FDA approving an ALS drug for the first time in five years last week, the disease continues to fluster researchers, and another biotech is feeling the pain of a mid-stage failure.

Clene Nanomedicine reported early Monday that its ALS program, which uses gold nanocrystals to try to catalyze intracellular reactions, did not achieve its Phase II primary or secondary endpoints. And in a press release, the company noted for the first time that it’s speaking with “potential strategic partners” about the program — language that typically indicates a biotech is preparing to sell off an asset.

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Marc Dunoyer, Alexion CEO (AstraZeneca via YouTube)

Up­dat­ed: As­traZeneca nabs a small rare dis­ease gene ther­a­py play­er for 667% pre­mi­um

AstraZeneca is kicking off the fourth quarter with a little M&A Monday for a gene editing player recently overcoming a second clinical hold to its only program in human studies.

The Big Pharma and its subsidiary Alexion are buying out little LogicBio for $2.07 per share. That’s good for a massive 667% premium over its Friday closing price, when it headed into the weekend at 27 cents and just weeks after Nasdaq said LogicBio would have to delist, which has been put on hold as the biotech requests a hearing. It’s one of two biotech deals to commence October, alongside the news of Incyte buying a vitiligo-focused biotech.

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Land­mark Amy­lyx OK spurs de­bate; Some... pos­i­tive? Alzheimer's da­ta; Can­cer tri­al bot­tle­neck; Sanofi's CRISPR bet; and more

Welcome back to Endpoints Weekly, your review of the week’s top biopharma headlines. Want this in your inbox every Saturday morning? Current Endpoints readers can visit their reader profile to add Endpoints Weekly. New to Endpoints? Sign up here.

After brief stops in Paris and Boston, John Carroll and the Endpoints crew are staying on the road in October with their return for a live/streaming EUBIO22 in London. The hybrid event fireside chats and panels on mRNA, oncology and the crazy public market. We hope you can join him there.

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An­oth­er warn­ing let­ter for Lupin as FDA iden­ti­fies de­fi­cien­cies at In­dia-based site

With few new details of what needs fixing, Lupin disclosed last week that the FDA recently sent a warning letter to its Tarapur, India-based site.

After an inspection from March 22 to April 4, Lupin disclosed in an April stock filing that it received a Form 483 with four observations, but it didn’t offer any details on the observations.

Similar to comments made in April, the company said last week it does not believe the FDA slap will disrupt its drug supplies or the existing revenues from operations of this facility.

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