Life Science Today 084 – Scorpion & AstraZeneca, ABL & Sanofi, Vertex, Cochlear, Vaxcyte
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, oncology partners, Parkinson’s partners, expanded European Commission, expanded FDA, and bacterial vaccines.
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.
Scorpion Signs $1.5B Deal with AstraZeneca for $75M Cash
Scorpion Therapeutics started major capital raises at the end of 2020 with a $108M series A, followed shortly thereafter by a $162M series B. The precision oncology biotech has leveraged that capital into a “drug hunting” platform. The idea is to drive precision oncology be combining multiple technologies from biology, medicinal chemistry, and data science to identify and create novel targets in oncology at an accelerated rate. All this hunting and product design has generated two preclinical molecules that are headed for INDs in 2023, both are for relatively niche oncology subgroups.
This week AstraZeneca signed up to find three new molecules in oncology using Scorpions platform with $75M up front in cash and $1.5B in potential milestone payments. These targets are scheduled to hit the expanding field of transcription factor medicine. A complex and growing area of study, transcription factors are involved in the regulation of gene expression. Under the terms, AZ will cover clinical development while Scorpion focus on preclinical development of three unique molecules.
I would say this deal strikes a moderate tone. It’s a great opportunity for Scorpion to show off the value of their Drug Hunting platform, while for AZ $75M up front is relatively affordable as a bet on three unique oncology targets.
ABL Signs $1B Deal with Sanofi for $75M Upfront
The good news for Parkinson’s patients is that there is a lot of competition in the Parkinson’s pipeline. Sanofi has now joined by putting $75M upfront and up to $1B in milestones for rights to ABL Biotechnologies lead candidate. Preclinical data suggests that the modified monoclonal antibody ABL301 crosses the blood brain barrier and directly targets alpha-synuclein which builds up in patients brains during the course of Parkinson’s disease. This is great pre-clinical data, but if we’ve learned anything from Biogen, it’s that crossing the blood brain barrier and targeting a key protein is just one step in generating an effective neurodegenerative therapy.
Vertex Receives Expanded EU Approval
Vertex Pharmaceuticals received expanded approval from the European Commission to treat younger patients (6-11 years old) with cystic fibrosis with their combination therapy KAFTIO, sold as Trikafta elsewhere. In clinical trials the therapy has been shown to increase lung function 10-15% compared to other available therapies. In Cystic Fibrosis genetic mutations lead to thick mucus and cause lung congestion, leading to trouble breathing throughout childhood and often have residual long-term damage to the lungs plus place those suffering at increased risk for severe respiratory infections. The ability to start therapy early can significantly decrease the long-term impacts of the disease. The FDA approved similar expanded treatment of the same age range in June of this year.
FDA Approves Expanded Cochlear Implants
Speak of the FDA, they have also granted an expanded approval, but this time in a unique space – cochlear Implants. Cochlear Limited is one of world’s leading cochlear implant companies. The FDA has approved the delivery of their Cochlear Nucleus implants to individuals with unilateral sensorineural hearing loss. This represents a major expansion to more than 60,000 individuals per a year in the US who may now be eligible for a single implant. There are existing FDA approved options for unilateral sensorineural hearing loss, but this approval expands the options for individuals and provides the opportunity to for many to select the right choice to restore full bilateral hearing.
Vaxcyte Raising Another $100M through Public Offering
Vaccines have had a bit of a moment in the sun the last couple of years. But application of fame is not universal. Many of the quiet background work going on in places like oncology and bacterial vaccines has gone unnoticed as hot new mRNA vaccines continue to own the spotlight. Similar to the scientists who quietly advanced mRNA technologies for the last decade, there is a range of folks trying to solve pernicious challenges in medicine particularly annually recurrent bacterial infections.
Vaxcyte has announce a $100M expanded public offering with plans to advance VAX-24 which received an IND the first week of the year and targets 24 strains of pneumonia. Pneumonia consistently ranks in the top 10 leading causes of death annually. Protein vaccines targeting Pneumonia have been around for some time, includes Merck’s 15-valent conjugate vaccine that was approved mid-2021, but there is still a lot of room for improvement, and with bacterial evolution it is expected to be an ongoing battle. Vaxcyte has additional bacterial focused vaccines in preclinical studies. There were seeking $20/share during the raise, and their stocks dropped ~15% on the news to about $19.50/share Friday. Scientifically and ethically, I love what Vaxcyte is doing. Practically, they have a long slog ahead to earn approvals against some heavy weight contenders in Merck and Pfizer.
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Story References
Scorpion & AstraZeneca
ABL & Sanofi
Vertex
Cochlear
Vaxcyte
About the Show
Life Science Today is your source for stories, insights, and trends across the life science industry. Expect weekly highlights about new technologies, pharmaceutical mergers and acquisitions, news about the moves of venture capital and private equity, and how the stock market responds to biotech IPOs. Life Science Today also explores trends around clinical research, including the evolving patterns that determine how drugs and therapies are developed and approved. It’s news, with a dash of perspective, focused on the life science industry.