Life Science Today 085 - Eleusis, AbbVie/Pfizer/Leo, UCB + Zogenix, Kura, GSK - Unilever

Introduction

Welcome to Life Science Today, your source for stories, insights, and trends across the life science industry. I’m your host, Dr. Noah Goodson. This week, psychedelic SPACs, eczema frenzy, bio-outs without the biobucks, back on track, and the mega-deal that wasn’t.

Disclaimer

The views expressed on Life Science Today are those of the host and guests. They do not necessarily reflect the opinions of any organizations with which they are affiliated. 

Psychedelic SPACs

Mounting evidence for clinical efficacy of previously illicit drugs suggests that approvals are on the way by the mid-2020s. The Cannabis industry continues to see significant gains driving increased research and massive investment. But they are not the only bioactive compounds to see investment, psychedelics are seeing a re-emergence as well. A wide range of significant evidence supports the use of Psilocybin, a psychedelic prodrug mushroom derivative, to treat a range of mental health conditions.

A new SPAC highlights just how much momentum there is in the space. Eleusis is going public through a SPAC valuing the company at $446M and raising $250M to drive intravenous modified Psilocybin delivery to treat depression. For long term therapy, oral Psilocybin may not be appropriate. Eleusis molecule, ELE-Psilo is set to enter Phase I clinical trials this year. There remain some complex legal hurdles for these medications as restrictions from the era of the war-on-drugs continue to hinder certain research and distribution. But with real money driving validated clinical research, if Eleusis doesn’t pave this road, another company certainly will.

Back-to-Back-to-Back Eczema Approvals

Leo Pharma earned FDA approval for their atopic dermatitis treatment, Adbry, right at the end of 2021. But in the last week the field of new therapies has gotten really crowded really fast. AbbVie received FDA approval for their daily oral RINVOQ to treat moderate-to-severe atopic dermatitis (AD) in children 12+ and adults. Pfizer also received FDA approval for their JAK1 inhibitor, CIBINQO (an unpronounceable word) to treat the adults with the same condition. While tough for pharma, this is really good for patients. All three medications have slightly different risk profiles. Only one RINVOQ, is approved in children. Both RINVOQ and CIBINQO are oral, while Adbry is an injection. AbbVie’s RINVOQ is a broad JAK inhibitor that has previous approvals for other autoimmune inflammatory conditions like certain forms of arthritis. Pfizer’s CIBINQO is also JAK inhibitor, but more narrowly focused on Janus Kinase I. Adbry on the other hand is a monoclonal antibody targeting IL-13 and must be injected. For patients suffering from atopic dermatitis, this new-found range of options is a great advancement. With different mechanisms of actions, it’s like one therapy may more directly target the underlying causes of a given person’s eczema.

UCB Epilepsy Focus 

UCB has announced the $1.9B acquisition of Zogenix to broaden their epilepsy portfolio. Zogenix oral solution Fintepla is already approved to treat Dravet syndrome in the US and is in process in Japan and Europe, while additional indications  are in late phase trial. This will be combined with UCBs existing access to the space. Zogenix received a robust 72% premium on their share price in this buyout which stands at the higher end of what I’ve seen recently and is likely reflective and maturity and early commercialization position of their pipeline. There is a relatively small $2/share premium for milestones. I think all together it shows UCB sees themselves in a strong position to increase utilization during a commercial role out across the globe which is why there is a high-premium nearly flat cost to this acquisition, compared to other more biobucks focused deals we frequently see on this show . 

Kura Back on Track

At the end of November we had a story of Kura Oncology having their Leukemia study placed on hold after a patient death. At the time it was thought that Differential Syndrome (DS) was at fault. We noted that this is a known potential side effect in patients treated with similar therapies, but with proper medical oversight most instances are treatable. The FDA has now lifted their partial hold and Kura can resume recruitment for this early phase trial with additional precautions in place for future DS events. If DS remains a side effect of this medication there may be dampened investor excitement, but with promising preclinical data and orphan drug designation, Phase IB and Phase II studies will continue back on track. How worried should we be about DS events in the future? I think that sort of depends on how effective the therapy is!

The Mega-Deal that Wasn’t

GSK has rejected a $68B buyout of their consumer health division from Unilever. The two global giants have been back and forth and this third proposal was outright rejected, with GSK thinking they are undervalued and Unilever disagreeing. This could have been one of the first mega-buyouts of the year and a chance for GSK to reposition away from consumer health while the pharma industry heads into a time of transition, but that is not meant to be. Now, I’m sure there are lots of Zoom calls going on in the background to see if this deal can be salvaged, but with the public eye on the no-go, this may be one for the scrap heap. On the stock market, Unilever was the one to suffer from the failed buyout dropping 9% as of recording, but I doubt it impacts their underlying value – it may just be time for plan B. 

Closing Credits

Thanks for joining me for Life Science Today, your source for stories, insights, and trends across the life science industry. Learn more at LifeScienceTodayPodcast.com. If you like what you hear, please tell a friend. Once again, I’m Dr. Noah Goodson, I’ll see you next week.