With No­var­tis and Google jump­ing in, Medicxi un­veils a $300M late-stage biotech fund with a transat­lantic scope

The Eu­ro­pean ven­ture group Medicxi is stak­ing out some new ter­rain in biotech in­vest­ing. And they’re bring­ing in two big play­ers — No­var­tis and Google’s Ver­i­ly — as key back­ers.

Known for a long­time strat­e­gy that clear­ly and care­ful­ly con­cen­trates their at­ten­tion on sin­gle-as­set or­ga­ni­za­tions that start out ear­ly on a lim­it­ed bud­get, Medicxi has added a new, $300 mil­lion fund that will fo­cus on late-stage biotech in­vest­ments. But they still want to fall in love with a top drug be­fore they buy in.

“This is the first time we’ve done a late-stage fund,” co-founder and part­ner Francesco De Ru­ber­tis told me in a pre­view of their an­nounce­ment.

The fo­cus for its Medicxi Growth 1 — MG1 — fund will start on pro­grams at the Phase IIb lev­el, man­aged by ful­ly de­vel­oped com­pa­nies with the kind of man­age­ment teams that they be­lieve can go all the way. And they’ll be of­fer­ing an al­ter­na­tive route to com­pa­nies that might oth­er­wise feel the need to jump­start an IPO, part­ner out on un­fa­vor­able terms or look too ear­ly to the US mar­kets for the fi­nan­cial fire­pow­er need­ed to ex­e­cute a promis­ing Phase III ef­fort.

“We will still in­vest when we get con­vinced by one as­set,” adds De Ru­ber­tis.

I’ve known the Medicxi part­ners — a group that in­cludes David Grainger, Kevin John­son and Michèle Ol­lier — for years now, and I asked De Ru­ber­tis for a lit­tle bet­ter idea of what he was look­ing for. He quick­ly turned to Gen­mab, one of Eu­rope’s biggest biotechs, which his group helped launch. They want to find the next Gen­mab or Acte­lion at a time they can make a key as­sist.

While quite a few crossover in­vestors that like to go for mez­za­nine rounds are look­ing for a re­turn in 12 to 18 months, Medicxi won’t be hap­py un­less they can go for the long haul.

To do that, they’ll al­ly with a dozen com­pa­nies over the next two or three years, 8 or 9 in Eu­rope and the rest in the US, able to put up $20 or $30 mil­lion each.

Ear­li­er funds have al­ready lined this ven­ture group up with J&J and GSK. Now the multi­na­tion­al No­var­tis is step­ping in, tak­ing its own pa­tient ap­proach in iden­ti­fy­ing the most am­bi­tious biotechs they may want to work with more di­rect­ly at some point along the way.

Giuseppe Zoc­co

Google more broad­ly, he adds, has iden­ti­fied health­care as a huge field they would like to grad­u­al­ly build their busi­ness in. This new fund ex­tends Ver­i­ly’s reach in Eu­rope.

The Eu­ro­pean In­vest­ment Fund al­so got in­volved in this fund.

Giuseppe Zoc­co, co-founder of In­dex Ven­tures and co-leader of the firm’s first growth fund in 2007, will be re­spon­si­ble for this new ven­ture. And they’re adding a few new play­ers to help pick up the ex­tra load.

In less than two years Medicxi has now raised more than $500 mil­lion for what is now a two-prong strat­e­gy to go ear­ly and late on its biotech in­vest­ments. You should ex­pect to hear more from them in the near fu­ture.

Roger Perlmutter, Merck R&D chief (YouTube)

UP­DAT­ED: Mer­ck makes a triple play on Covid-19: buy­ing out a vac­cine biotech, part­ner­ing on an­oth­er pro­gram and adding an an­tivi­ral to the mix

Merck is making a triple play in a sudden leap into the R&D campaign against Covid-19.

Tuesday morning the pharma giant simultaneously announced plans to buy an Austrian biotech that has been working on a preclinical vaccine candidate, added a collaboration on another vaccine with the nonprofit IAVI and inked a deal with Ridgeback Biotherapeutics on an early-stage antiviral.

The deal with IAVI covers recombinant vesicular stomatitis virus (rVSV) technology that is the basis for Merck’s successful Ebola Zaire virus vaccine. That’s going into the clinic later this year.

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The Advance Clinical leadership team: CEO Yvonne Lungershausen, Sandrien Louwaars - Director Business Development Operations, Gabriel Kremmidiotis - Chief Scientific Officer, Ben Edwards - Chief Strategy Officer

How Aus­tralia De­liv­ers Rapid Start-up and 43.5% Re­bate for Ear­ly Phase On­col­o­gy Tri­als

About Avance Clinical

Avance Clinical is an Australian owned Contract Research Organisation that has been providing high-quality clinical research services to the local and international drug development industry for 20 years. They specialise in working with biotech companies to execute Phase 1 and Phase 2 clinical trials to deliver high-quality outcomes fit for global regulatory standards.

As oncology sponsors look internationally to speed-up trials after unprecedented COVID-19 suspensions and delays, Australia, which has led the world in minimizing the pandemic’s impact, stands out as an attractive destination for early phase trials. This in combination with the streamlined regulatory system and the financial benefits including a very favourable exchange rate and the R & D cash rebate makes Australia the perfect location for accelerating biotech clinical programs.

Andrew Hopkins, Exscientia founder and CEO (Exscientia)

Af­ter years of part­ner­ships, AI biotech Ex­sci­en­tia lands first ma­jor fi­nanc­ing round at $60M

After years racking up partnerships with biotechs and Big Pharma, the AI drug developer Exscientia has landed its first large financing round.

The UK-based company raised $60 million in a Series C round led by Novo Holdings — more than double the $26 million it garnered in a Series B 18 months ago. The round will help further the company’s expansion into the US and further what it calls, borrowing a term from the software world, its “full-stack capabilities,” i.e. its ability to develop drugs from the earliest stage to the market.

Covid-19 roundup: Janet Wood­cock steps aside — for now — as FDA drug czar; WHO hits the brakes on hy­droxy study af­ter lat­est safe­ty alarm

The biopharma industry will soon get a look at what the FDA will look like once CDER’s powerful chief Janet Woodcock retires from her post.

Long considered one of the most influential regulators in the agency, if not its single most powerful official when it counts, Woodcock is being detached to devote herself full-time to the White House’s special project to fast-forward new drugs and vaccines for the pandemic. The move comes a week after some quick reshuffling as Woodcock and CBER chief Peter Marks joined Operation Warp Speed. Initially they opted to recuse themselves from any FDA decisions on pandemic treatments and vaccines, after consumer advocates criticized the move as a clear conflict of interest in how the agency exercises oversight on new approvals.

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Piv­otal myas­the­nia gravis da­ta from ar­genx au­gur well for FcRn in­hibitors in de­vel­op­ment

Leading the pack of biotechs vying for a piece of the generalized myasthenia gravis (gMG) market with an FcRn inhibitor, argenx on Tuesday unveiled keenly anticipated positive late-stage data on its lead asset, bringing it one step closer to regulatory approval.

Despite steroids, immunosuppressants, acetylcholinesterase inhibitors, and Alexion’s Soliris, patients with the rare, chronic neuromuscular disorder (more than 100,000 in the United States and Europe) don’t necessarily benefit from these existing options, leaving room for the crop of FcRn inhibitors in development.

Af­ter de­cou­pling from Re­gen­eron, Sanofi says it’s time to sell the $13B stake picked up in the mar­riage

With Regeneron shares going for a peak price — after doubling from last fall — Sanofi is putting a $13 billion stake in their longtime partner on the auction block. And Regeneron is taking $5 billion of that action for themselves.

Sanofi — which has been decoupling from Regeneron for more than a year now — bought in big in early 2013, back when Regeneron’s stock was going for around $165 a share. Small investors flocked to the deal, buzzing about an imminent takeover. The buyout chatter wound down long ago.

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Janet Woodcock, director of the Center for Drug Evaluation and Research (AP Images)

Covid-19 roundup: Hit with new con­flict ac­cu­sa­tions, Janet Wood­cock steps out of the agen­cy's Covid-19 chain of com­mand

Two weeks ago, FDA drug chieftain Janet Woodcock was assuring a top Wall Street analyst that any vaccine approved for combating Covid-19 would have to meet high agency standards on safety and efficacy before it’s approved. But over the weekend, after she and Peter Marks took top positions with the public-private operation meant to speed a new vaccine to lightning-fast approvals — they both recused themselves from the review process after an advocacy group argued their roles close to the White House could pose a conflict of interest.

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Eric Edwards, Phlow president and CEO (PR Newswire)

BAR­DA of­fers a tiny start­up up to $812M to cre­ate a US-based drug man­u­fac­tur­er — and the CEO comes with a price goug­ing con­tro­ver­sy on his ré­sumé

BARDA has tapped a largely unknown startup to ramp up production of a list of drugs that may be at risk of running short in the US. And the deal, which comes with up to $812 million in federal funds, was inked by a CEO who found himself in the middle of an ugly price gouging controversy a few years ago.

The feds’ new partner — called Phlow — won a 4-year “base” contract of $354 million, with another $458 million that’s on the table in potential options to sustain the outfit. That would make it one of the largest awards in BARDA’s history.

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Re­searchers de­fine ex­act­ly what they saw in the first pos­i­tive remde­sivir study for Covid-19. But what's that worth to Gilead?

Remdesivir can work in fighting Covid-19, particularly for patients with less severe cases, but this is just a first step in the journey to finding combos that can do the job much better.

That’s the bottom line from Gilead’s randomized study published in the New England Journal of Medicine. Analysts were quick to draw conclusions about how the big biotech could turn this into a profitable advantage — with widespread expectation of considerable pricing restraint on Gilead’s part. Anyone looking for a new mountain of cash to count as the world grapples with the pandemic is likely to come away disappointed.