Josh Hoffman, Zymergen CEO (Zymergen)

Zymer­gen's bid to dis­rupt a $3T in­dus­tri­al man­u­fac­tur­ing mar­ket goes vi­ral, earn­ing a mas­sive $500M IPO

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

It’s not a sto­ry you hear every day: A biotech com­pa­ny that doesn’t use its plat­form to de­vel­op ther­a­peu­tics? De­spite some raised eye­brows ear­ly on, Emeryville, CA-based Zymer­gen has con­vinced in­vestors that its plan to dis­rupt in­dus­tri­al man­u­fac­tur­ing is worth the bet and now it’s priced an eye-pop­ping IPO to take its mis­sion to the next lev­el.

Syn­thet­ic bi­ol­o­gy firm Zymer­gen late Wednes­day priced its 16.13 mil­lion shares at $31, good for a pub­lic of­fer­ing in the range of $500 mil­lion, which would put the com­pa­ny in rar­i­fied air along with Sana Biotech­nol­o­gy as biotech com­pa­nies with half-bil­lion-dol­lar or more IPOs this year, ac­cord­ing to End­points News’ IPO track­er.

The up­sized pric­ing — Zymer­gen ini­tial­ly pen­ciled in a $100 mil­lion cash raise in its S-1 fil­ing last month  — puts Zymer­gen on track to con­tin­ue de­vel­op­ing its de­sign­er mol­e­cules it plans to use to dis­rupt a $3 tril­lion in­dus­tri­al man­u­fac­tur­ing mar­ket with ap­pli­ca­tions as far and wide as con­sumer care, agri­cul­ture and elec­tron­ics.

The com­pa­ny plans to get there by us­ing a process it calls “bio­fac­tur­ing,” us­ing ge­net­i­cal­ly en­gi­neered mol­e­cules to pro­duce in­dus­tri­al-grade prod­ucts with­out the need for tox­ic chem­i­cals of­ten used in the process or ex­pen­sive in­fra­struc­ture. All told, the com­pa­ny thinks it can cut costs by about 90% across the in­dus­try and pro­duce the same ma­te­ri­als in half the time.

It’s a fo­cus that has of­ten not been re­ward­ed among biotech in­vestors look­ing for a clear path to ther­a­pies, but Zymer­gen be­lieves it’s found its own huge un­met need — and the case keeps on flow­ing in. The $500 mil­lion cash raise comes on the heels of a $400 mil­lion Se­ries C back in 2018 and a $300 mil­lion raise in Sep­tem­ber.

All told, the com­pa­ny has raised some­where in the ball­park of $1.375 bil­lion since its ini­tial seed round way back in 2014.

While the com­pa­ny has broad am­bi­tions for its pipeline, it has just one prod­uct on the mar­ket: Hya­line, a high-qual­i­ty op­ti­cal film used in elec­tron­ics. Mean­while, the biotech is pur­su­ing can­di­dates across a trio of elec­tron­ics, agri­cul­ture and con­sumer care. Those ar­eas alone, it be­lieves, of­fer a mar­ket op­por­tu­ni­ty of about $1.2 tril­lion.

Zymer­gen plans a slate of roll­outs in those mar­kets in 2022 and 2023 and will use Hya­line as its ca­nary in the coal mine in terms of con­sumer in­ter­est. If all goes to plan, Zymer­gen thinks its bio­fac­tur­ing mod­el could prove dis­rup­tive across a range of in­dus­tries, po­ten­tial­ly crack­ing open its lofty $3 tril­lion mar­ket goals.

“Our pipeline of prod­ucts has been de­signed with rapid mar­ket adop­tion in mind,” the com­pa­ny said in its prospec­tus. “In ad­di­tion, these prod­ucts demon­strate our bio­fac­tur­ing plat­form’s abil­i­ty to de­vel­op com­mer­cial­ly rel­e­vant prod­ucts across mul­ti­ple ma­jor dis­tinct chem­i­cal class­es.”

Scoop: Boehringer qui­et­ly shut­ters a PhII for one of its top drugs — now un­der re­view

Boehringer Ingelheim has quietly shut down a small Phase II study for one of its lead drugs.

The private pharma player confirmed to Endpoints News that it had shuttered a study testing spesolimab as a therapy for Crohn’s patients suffering from bowel obstructions.

A spokesperson for the company tells Endpoints:

Taking into consideration the current therapeutic landscape and ongoing clinical development programs, Boehringer Ingelheim decided to discontinue our program in Crohn’s disease. It is important to note that this decision is not based on any safety findings in the clinical trials.

Endpoints Premium

Premium subscription required

Unlock this article along with other benefits by subscribing to one of our paid plans.

Vas Narasimhan (Photographer: Jason Alden/Bloomberg via Getty Images)

No­var­tis de­tails plans to axe 8,000 staffers as Narasimhan be­gins sec­ond phase of a glob­al re­org

We now know the number of jobs coming under the axe at Novartis, and it isn’t small.

The pharma giant is confirming a report from Swiss newspaper Tages-Anzeiger that it is chopping 8,000 jobs out of its 108,000 global staffers. A large segment will hit right at company headquarters in Basel, as CEO Vas Narasimhan axes some 1,400 of a little more than 11,000  jobs in Switzerland.

The first phase of the work is almost done, the company says in a statement to Endpoints News. Now it’s on to phase two. In the statement, Novartis says:

Endpoints News

Keep reading Endpoints with a free subscription

Unlock this story instantly and join 144,500+ biopharma pros reading Endpoints daily — and it's free.

Lina Gugucheva, NewAmsterdam Pharma CBO

Phar­ma group bets up to $1B-plus on the PhI­II res­ur­rec­tion of a once dead-and-buried LDL drug

Close to 5 years after then-Amgen R&D chief Sean Harper tamped the last spade of dirt on the last broadly focused CETP cholesterol drug — burying their $300 million upfront and the few remaining hopes for the class with it — the therapy has been fully resurrected. And today, the NewAmsterdam Pharma crew that did the Lazarus treatment on obicetrapib is taking another big step on the comeback trail with a €1 billion-plus regional licensing deal, complete with close to $150 million in upfront cash.

Endpoints News

Keep reading Endpoints with a free subscription

Unlock this story instantly and join 144,500+ biopharma pros reading Endpoints daily — and it's free.

How pre­pared is bio­phar­ma for the cy­ber dooms­day?

One of the largest cyberattacks in history happened on a Friday, Eric Perakslis distinctly remembers.

Perakslis, who was head of Takeda’s R&D Data Sciences Institute and visiting faculty at Harvard Medical School at the time, had spent that morning completing a review on cybersecurity for the British Medical Journal. Moments after he turned it in, he heard back from the editor: “Have you heard what’s going on right now?”

Endpoints Premium

Premium subscription required

Unlock this article along with other benefits by subscribing to one of our paid plans.

Aurobindo Pharma co-founders P. V. Ram Prasad Reddy (L) and K. Nityananda Reddy

Au­robindo Phar­ma re­ceives warn­ing let­ter from In­di­a's SEC fol­low­ing more FDA ques­tion marks

Indian-based generics manufacturer Aurobindo Pharma has been in the crosshairs of the FDA for several years now, but the company is also attracting attention from regulators within the subcontinent.

According to the Indian business news site Business Standard, a warning letter was sent to the company from the Securities Exchange Board of India, or SEBI.

The letter is related to disclosures made by the company on an ongoing FDA audit of the company’s Unit-1 API facility in Hyderabad, India as well as observations made by the US regulator between 2019 and 2022.

New Charles River Laboratories High Quality (HQ) Plasmid DNA Centre of Excellence at Bruntwood SciTech’s Alderley Park in Cheshire, United Kingdom. (Charles River)

Charles Riv­er Lab­o­ra­to­ries to start cell and gene ther­a­py man­u­fac­tur­ing at UK site in Sep­tem­ber

While Massachusetts-based Charles River Laboratories has been on an acquisition spree, they are not against planting their flag. The latest move by the company sees them crossing the pond to establish a manufacturing site in the UK.

The company on Tuesday opened its cell and gene therapy manufacturing center at Bruntwood SciTech’s Alderley Park in Cheshire, United Kingdom. The expansion follows Charles River’s acquisition of Cognate BioServices and Cobra Biologics in 2021 for $875 million. Cognate is a plasmid DNA, viral vector and cell therapy CDMO.

(AP Photo/Gemunu Amarasinghe)

Some phar­ma com­pa­nies promise to cov­er abor­tion-re­lat­ed trav­el costs — while oth­ers won't go that far yet

As the US Department of Health and Human Services promises to support the millions of women who would now need to cross state lines to receive a legal abortion, a handful of pharma companies have said they will pick up employees’ travel expenses.

GSK, Sanofi, Johnson & Johnson, BeiGene, Alnylam and Gilead have all committed to covering abortion-related travel expenses just four days after the Supreme Court overturned Roe v. Wade and revoked women’s constitutional right to an abortion.

Endpoints News

Keep reading Endpoints with a free subscription

Unlock this story instantly and join 144,500+ biopharma pros reading Endpoints daily — and it's free.

Bristol Myers Squibb (Alamy)

CVS re­sumes cov­er­age of block­buster blood thin­ner af­ter price drop fol­lows Jan­u­ary ex­clu­sion

Following some backlash from the American College of Cardiology and patients, Bristol Myers Squibb and Pfizer lowered the price of their blockbuster blood thinner Eliquis, thus ensuring that CVS Caremark would cover the drug after 6 months of it being off the major PBM’s formulary.

“Because we secured lower net costs for patients from negotiations with the drug manufacturer, Eliquis will be added back to our template formularies for the commercial segment effective July 1, 2022, and patient choices will be expanded,” CVS Health said in an emailed statement. “Anti-coagulant therapies are among the non-specialty products where we are seeing the fastest cost increases from drug manufacturers and we will continue to push back on unwarranted price increases.”

#Can­nes­Lions2022: Con­sumer health ex­ecs call on agen­cies to in­volve pa­tients in cre­ative process

CANNES — When Tamara Rogers joined GSK back in 2018, “science was king and R&D were the gods.” Now the global chief marketing officer of consumer healthcare wants to make room for another supreme being: the consumer.

As health and wellness becomes more relevant to consumers amid the pandemic, four health-focused executives called on marketers to involve patients in their creative process in a panel discussion at the Cannes Lions advertising creativity festival.

Endpoints News

Keep reading Endpoints with a free subscription

Unlock this story instantly and join 144,500+ biopharma pros reading Endpoints daily — and it's free.