its experimental therapy SAGE-217 in a new Phase 3 study for treatment-resistant depression. SAGE-217 cleared a Phase 3 study in PPD and is also in a late-stage study in major depressive disorder. At a daylong presentation, Sage also said results from a small study bipolar depression weren’t strong enough to move into Phase 3 for now.
QUARTERLY NOTES
—Biopharma companies raised $7.2 billion in the second quarter through 18 IPOs and 61 follow-on offerings, an indicator of “continued demand for new equity in the industry,” according to an SVB Leerink report. The positive returns are mainly from a small group of “high-flying unicorn” companies, while returns for the rest have fallen off, the report said.
—Sales of the Biogen (NASDAQ: [[ticker:BIIB]]) spinal muscular atrophy drug nusinersen (Spinraza) slowed in the second quarter and missed analyst estimates. Biogen said the recent launch of the SMA gene therapy Zolgensma, from Novartis (NYSE: [[ticker:NVS]]), was not to blame. Biogen is also adding more bets in ophthalmology and immunology to balance its risky neuroscience focus. Here’s more from BioPharma Dive.
—GlaxoSmithKline (NYSE: [[ticker:GSK]]) disclosed that it has axed 11 programs over the past year, many of them for respiratory diseases, according to Fierce Biotech. In its quarterly report, the company also disclosed a new collaboration with privately held cancer immunotherapy firm Lyell Immunopharma.
DEALS & DOLLARS
—Celgene reworked its alliance with cancer drug maker Jounce Therapeutics (NASDAQ: [[ticker:JNCE]]). Celgene grabbed rights to one drug, JTX-8064, for a $50 million upfront payment, while sending several others back to Jounce.
—Privately held liquid biopsy developer Freenome hauled in a $160 million Series B round from RA Capital, Polaris Partners, and others. The cash will fund a study to screen patients for colorectal cancer.
—Health IT firm Livongo Health (NASDAQ: [[ticker:LVGO]]) and cancer test company Castle Biosciences (NASDAQ: [[ticker:CSTL]]) completed IPOs, but SVB Leerink analyst Geoffrey Porges noted that trends point to a slowdown in stock financings.
—A week after cutting a licensing deal with Astellas Pharma, hearing loss startup Frequency Therapeutics raised a $62 million Series C round.
—Breath Therapeutics, a respiratory drug developer based in Menlo Park, CA, and Munich, Germany, was acquired by privately held Zambon of Italy for approximately $156 million. Breath shareholders could earn up to $558 million more if the company’s drug for lung disorder bronchiolitis obliterans syndrome achieves milestones.
—Harvard University spinout TScan Therapeutics announced $48 million in financing to support development of T-cell receptor therapies for cancer.
—Less than a year after its launch, Boston-based NeuroBo Pharmaceuticals has reached a deal to become a public company through a reverse merger with Gemphire Therapeutics (NASDAQ: [[ticker:GEMP]]). NeuroBo’s clinical-stage drugs for diabetic neuropathic pain and Alzheimer’s disease came from South Korean company Dong-A ST.
PEOPLE ON THE MOVE
—Vertex announced that longtime CEO Jeff Leiden would transition to executive chairman next spring and be replaced by chief medical officer Reshma Kewalramani. The news comes just as Vertex filed an application for a three-drug regimen for cystic fibrosis that could treat up to 90 percent of patients with the disease. Leiden’s plan to broaden Vertex’s pipeline remains a work in progress.
In other moves, Graf Finckenstein left Roche to become chief medical officer of Iovance Biotherapeutics… Disarm Therapeutics named Alvin Shih its new CEO… Geoffrey Gilmartin was appointed chief medical officer of Proteostasis Therapeutics… and Catherine Brehman-Steen is joining Obsidian Therapeutics as chief development officer.
Frank Vinluan and Alex Lash contributed to this report.
Image by Flickr user Dave Winer via a Creative Commons license
