With just a lit­tle en­cour­age­ment, biotech in­vestors are ready to fall in love again

While you may have dealt with VCs dur­ing your pre-IPO life, pub­lic in­vestors are a whole new lev­el of scruti­ny. Of course your de­vel­op­ment pro­grams need to be well po­si­tioned, and of course your CMO needs to be cred­i­ble and yes your CFO needs to be ex­pe­ri­enced – but in ad­di­tion to all that YOU as CEO need to be rock sol­id. Pub­lic in­vestors will push you, test you, dili­gence the heck out of you and will on­ly in­vest if they can look you in the eye and see con­vic­tion. Tell them why you be­lieve in the com­pa­ny and show them how you will ex­e­cute. Bot­tom line: IPOs are a very pub­lic ref­er­en­dum about the CEO of a biotech com­pa­ny. Wel­come to the big leagues. — Hamza Suria, CEO of Anap­tys­Bio, writ­ing for End­points News ear­li­er this year.

Hamza Suria’s turn in the big leagues since go­ing pub­lic ear­ly this year has met with con­sid­er­able suc­cess.

He priced his IPO shares $ANAB at $15, the mid­dle of the range, and then watched them climb. Yes­ter­day, they dou­bled in val­ue, up 101% on the back of a small proof-of-con­cept tri­al for their drug for eczema — a field that has been dom­i­nat­ed by bio­phar­ma gi­ants like Re­gen­eron/Sanofi. And the shares start­ed this morn­ing at $70.40, edg­ing up­ward as Suria as­sessed a mar­ket cap for his com­pa­ny of $1.4 bil­lion — a 370% rise.

Nat­u­ral­ly, with the mar­ket be­ing a siz­zling hot skil­let of pas­sion for up­beat bio­phar­ma news, Suria im­me­di­ate­ly cashed in with plans to sell 3.45 mil­lion shares, now worth around a quar­ter of a bil­lion dol­lars.

The da­ta from his 12-pa­tient eczema study of the IL-33 drug ANB020 were im­pres­sive, but al­so more than a lit­tle frag­ile, as in any PoC study. In­ves­ti­ga­tors found that:

Af­ter a sin­gle dose of ANB020, 75% of pa­tients achieved an Eczema Area Sever­i­ty In­dex (EASI) score im­prove­ment of 50 per­cent rel­a­tive to en­roll­ment base­line (EASI-50) at day 15, 83% of pa­tients achieved EASI-50 at day 29 and 75 per­cent of pa­tients achieved EASI-50 at day 57. All 12 pa­tients achieved EASI-50 at one or more time points through Day 57 post-ANB020 ad­min­is­tra­tion.

Baird an­a­lysts gave it a quick thumbs up for a drug that is be­ing test­ed for a va­ri­ety of con­di­tions. They not­ed:

Based on these re­sults, we’re rais­ing our prob­a­bil­i­ty of suc­cess in all study in­di­ca­tions, atopic der­mati­tis (from 20% to 40%), peanut al­ler­gy (15% to 20%), and asth­ma (20% and 30%). As a re­sult, we’re rais­ing our price tar­get to $69. We con­tin­ue to be­lieve that atopic der­mati­tis and asth­ma rep­re­sent the biggest po­ten­tial op­por­tu­ni­ties for the drug.

In a state­ment, Suria said he was “very en­cour­aged.”

That’s a great proof-of-con­cept study, but when you on­ly have 12 pa­tients in it, the per­cent­ages can be great­ly af­fect­ed by a sin­gle out­come. Anap­tys­Bio has a much big­ger test in mind, with plans to re­cruit up to 300 pa­tients for a Phase IIb that is sched­uled to start next year.

With IPOs shoot­ing up for many play­ers, fol­low-ons com­ing fast and most boats ris­ing in a red-hot biotech mar­ket, we’re get­ting a flash of the kind of over­sized re­wards that ran through all of the 2014 boom.

Once again, there’s no telling this time how long it will last. But look for lots more stock mar­ket ac­tion be­fore the bloom comes off the biotech rose.

Tower Bridge in London [Shutterstock]

#UK­BIO19: Join GSK’s Hal Bar­ron and a group of top biotech ex­ecs for our 2nd an­nu­al biotech sum­mit in Lon­don

Over the past 10 years I’ve made a point of getting to know the Golden Triangle and the special role the UK biopharma industry plays there in drug development. The concentration of world class research institutes, some of the most accomplished scientists I’ve ever seen at work and a rising tide of global investment cash leaves an impression that there’s much, much more to come as biotech hubs are birthed and nurtured.

Deborah Dunsire. Lundbeck

UP­DAT­ED: Deb­o­rah Dun­sire is pay­ing $2B for a chance to leap di­rect­ly in­to a block­buster show­down with a few of the world's biggest phar­ma gi­ants

A year after taking the reins as CEO of Lundbeck, Deborah Dunsire is making a bold bid to beef up the Danish biotech’s portfolio of drugs in what will likely be a direct leap into an intense rivalry with a group of giants now carving up a growing market for new migraine drugs.

Bright and early European time Monday morning the company announced that it will pay up to about $2 billion to buy Alder, a little biotech that is far along the path in developing a quarterly IV formulation of a CGRP drug aimed at cutting back the number of crippling migraines patients experience each month. In a followup call, Dunsire also noted that the company will likely need 200 to 250 reps for this marketing task on both sides of the Atlantic. And analysts were quick to note that the dealmaking at Lundbeck isn’t done, with another $2 billion to $3 billion available for more deals to beef up the pipeline.

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It’s fi­nal­ly over: Bio­gen, Ei­sai scrap big Alzheimer’s PhI­I­Is af­ter a pre­dictable BACE cat­a­stro­phe rais­es safe­ty fears

Months after analysts and investors called on Biogen and Eisai to scrap their BACE drug for Alzheimer’s and move on in the wake of a string of late-stage failures and rising safety fears, the partners have called it quits. And they said they were dropping the drug — elenbecestat — after the independent monitoring board raised concerns about…safety.

We don’t know exactly what researchers found in this latest catastrophe, but the companies noted in their release that investigators had determined that the drug was flunking the risk/benefit analysis.

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Scott Gottlieb, AP Images

Scott Got­tlieb has a new board po­si­tion to add to the re­sume — and this one is fo­cused on a fa­vorite sub­ject

Scott Gottlieb has another position to add to his lengthy roster of boards and advisory roles in the wake of his departure from the helm of the FDA.

He’ll be joining the advisory board of FasterCures, a think tank which former junk bond king Michael Milken set up to help drive more drugs to the market, looking to accelerate drug R&D. That’s a subject close to the heart of Gottlieb, who blazed a trail at the FDA focused on hustling up the process. That helped endear him to the industry, making him one of the most popular commissioners in FDA history.

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Karyopharm lines up $150 mil­lion cash in­jec­tion to back con­tro­ver­sial drug launch

Karyopharm has entered into a royalty agreement worth up to $150 million to back the launch of their multiple myeloma drug — recently approved by the FDA over the objections of a majority of the agency’s outside experts.

The deal with HealthCare Royalty Partners, worth $75 million now and $75 million once certain regulatory and commercial milestones have been reached, will fund the commercialization of Karyopharm’s oral SINE compound Xpovio (selinexor) for patients with multiple myeloma who have already had at least four prior therapies. The money will help Karyopharm as it markets its newly approved drug and pushes through clinical trials testing the drug on refractory multiple myeloma patients with one to three therapies and patients with treatment-resistant diffuse large B-cell lymphoma. It will give Karyopharm a cushion through mid-2021.

Af­ter a run of CT­LA-4 com­bo fail­ures, sci­en­tists spot­light a way to make it work — in se­lect pa­tients

CTLA-4/PD-(L)1 combinations have been one of the El Dorados of oncology, its promise forever behind that next hill but apparently unattainable after a series of pivotal clinical failures. But researchers at New York’s Memorial Sloan Kettering Cancer Center and the Technical University of Munich think they may know how to fix what’s wrong and boost the drive to next-gen cancer combos.

In a preclinical animal research program, researchers found that within a cell, checkpoints rely on a specific molecule — RNA-sensing molecule RIG-I — to work. If that sounds familiar, it’s because it has already been identified as a target for boosting immune responses and was subject to at least one Phase I/II trial. Pfizer in December allied itself with Kineta with $15 million upfront and $505 million in potential milestones to develop RIG-I immunotherapies, and three years ago Merck purchased German upstart Rigontec for $137 million upfront and over $400 million in potential milestones for the same purpose.

Pur­due Phar­ma files for bank­rupt­cy as first step in $10B opi­oid set­tle­ment

It’s settled. Purdue Pharma has filed for bankruptcy as part of a deal that would see the OxyContin maker hand over $10 billion in cash and other contributions to mitigate the opioid crisis — without acknowledging any wrongdoing in the protracted epidemic that’s resulted in hundreds of thousands of deaths.

The announcement came two weeks after news of a proposed settlement surfaced and largely confirm what’s already been reported.

Lisa M. DeAngelis, MSKCC

MSK picks brain can­cer ex­pert Lisa DeAn­ge­lis as its next CMO — fol­low­ing José Basel­ga’s con­tro­ver­sial ex­it

It’s official. Memorial Sloan Kettering has picked a brain cancer expert as its new physician-in-chief and CMO, replacing José Baselga, who left under a cloud after being singled out by The New York Times and ProPublica for failing to properly air his lucrative industry ties.

His replacement, who now will be in charge of MSK’s cutting-edge research work as well as the cancer care delivered by hundreds of practitioners, is Lisa M. DeAngelis. DeAngelis had been chair of the neurology department and co-founder of MSK’s brain tumor center and was moved in to the acting CMO role in the wake of Baselga’s departure.

Penn team adapts CAR-T tech, reengi­neer­ing mouse cells to treat car­diac fi­bro­sis

After establishing itself as one of the pioneer research centers in the world for CAR-T cancer therapies, creating new attack vehicles to eradicate cancer cells, a team at Penn Medicine has begun the tricky transition of using the basic technology for heart repair work.

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