 | | Wednesday, February 29, 2012 | |  |
 Bubble, Billions, or Both?
Another month, another batch of big hepatitis C news. Is all the furious dealmaking in the space indicative of biotech's own mini-bubble? Or is it a matter of assets finally maturing to a point that they can realistically address a huge, and previously underserved, opportunity?
It all began quietly enough, with Roche announcing last October that it would buy Anadys and its phase 2b hepatitis C drug setrobuvir for $230 million. This was a relatively cheap acquisition of an asset with a potential role in a future combo therapy. Despite some encouraging clinical results, it had been languishing unnoticed by investors. But if Wall Street wasn't paying attention, pharma companies most definitely were. And shortly after the deal, things went hyberbolic. More...
More By Karl Thiel
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| |  | | Gilead Sciences suffered a major reversal of fortune this month. The company's stock soared after it reported that GS-7977--the hepatitis C treatment it paid $11 billion for in acquiring Pharmasset--quickly cured a small group of non-responders. This is a tough subpopulation, and no other hep C drug had managed a similar feat. Then just two weeks later, it reported that most of the seemingly cured patients had relapsed. Of course, this doesn't mean that GS-7977 isn't a valuable product or even that it might not work in non-responders--ironing out these kinks is what mid-stage clinical trials are all about. But it was a pretty stark reminder of how fast fortunes can change in this industry. -KT | | | |  | Sure, they earn millions of dollars a year and get corporate perks worth more than their workers' salaries...but when there's trouble at a company, the buck stops with the CEO, right? Well that certainly didn't seem to be the case at Johnson & Johnson, which has gone from one product recall problem to another since 2009 (review the list yourself!). While a couple executives fell on their swords, chief exec William Weldon has stubbornly stuck to the corner office. No longer: He's being replaced by Alex Gorsky as the culmination of what the company describes as a multiyear succession process. In its 126 year history, J&J has always promoted chief executives from within, and this case is no different. But still, it must have been tempting to break with tradition and bring in someone with no baggage.
Oh--and not at all surprisingly, Weldon is getting a sweetheart deal as he makes his exit. -KT | | | |  | No, the race for hepatitis C assets is not over, as Novartis--something of a latecomer to the space--proves with its deal for Enanta's early stage assets.
There's also a fight shaping up in the furiously disruptive sequencing space. Roche, which has always been tenacious when it comes to getting what it wants, is making a hostile bid for market leader Illumina. But Illumina is already suffering serious competition from Life Technologies and eyeing some commercial third-generation technologies. This month, stealth startup Oxford Nanopore presented some stunning data on its technology, one implementation of which is a USB memory stick-sized sequencer that the company says will cost just $900! -KT | | | |  |  | • Biotech Bay (Berkeley, California)
Lawrence Berkeley National Laboratory
Associate Lab Director for Operations / Chief Operating Officer
The COO leads and manages a comprehensive array of services including: Environment, Health and Safety, Facilities (includes capital construction), Finance, Human Resources and Workforce Diversity, Information Technology and Public Affairs. The COO also develops an organization-wide strategy for program excellence, engages community partners and works closely with Lab Management to develop the strategic vision of Berkeley Lab.
• BioCapital (Gaithersburg, Maryland)
MedImmune, LLC
Vice President, Clinical / R&D Quality
Leads and directs the strategic direction of the Clinical/R & D Quality Operations organization and is accountable and responsible for the design, development, execution and administration of a GxP Quality System meeting all MedImmune and regulatory agency Good Laboratory Practices (GLP), Good Clinical Practice (GCP) and Pilot Plant Good Manufacturing Practices (GMP) compliance requirements etc.
• BioMidwest (Madison, Wisconsin)
Promega Corporation
Vice President of Manufacturing Operations
You lead Promegas manufacturing, logistics, production planning, facilities and procurement functions with a robust vision that reflects your proven ability to succeed in a dynamic industry. Strong business acumen and deep customer experience informs your leadership. You provide clear strategic direction in order to achieve critical company objectives etc.
• Pharm Country (Basking Ridge, New Jersey)
Ipsen
Vice President, Legal
Responsible for the contracting function for Ipsen US and providing advice to the Franchise Teams in support of Ipsens products. The VP Legal will also assist the NA General Counsel with various other legal matters as they arise. The position is diverse and appeals to those with a broad range of experience and a desire to provide legal counsel across an organization. Business units supported include R&D, Medical Affairs, Business Franchises, Human Resources, Finance and Corporate Governance.
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| | |  |  BioSpace Career Fair at CALBIO2012
San Francisco Marriott Marquis, Wednesday, March 7, 2012, 1pm to 6pm. Job seekers can spend a day with HR representatives and Hiring Managers from top biotech, pharma, and medical device companies in the Bay Area. |  |  Pharm Country Career Fair
Bridgewater Marriott, Thursday, March 22, 2012, 11am to 4pm. Job seekers can spend a day with HR representatives and Hiring Managers from top biotech, pharma, and medical device companies in the tri-state area. |
| |  | | Celgene has taken an interest in Acetylon, which is developing histone deacetylase (HDAC) inhibitors -- a class in which Celgene found success with the cancer drug Istodax, which it acquired with Gloucester Pharmaceuticals. Rather than partner on a program, Celgene is for now simply making an investment in Acetylon and taking an "observer" role on the board -- but not a board seat. And Ironwood is back at the trough for the first time since its early 2010 IPO -- a debut that was distinguished for the large capital raise it accomplished at a very dificult time. And Radius, working on osteoporosis therapies, is lining up for its own IPO. -KT | | | |  | | The great rheumatoid arthritis battle is over, now that the Supreme Court has declined to consider an appeal from Johnson & Johnson over Abbott Laboratories' alleged infringement of patents covering Remicade and Simponi. Abbott had been ordered by a District court in 2009 to pay J&J $1.67 billion in damages for infringing certain J&J patents. But a Federal Appeals court overturned that decision a year ago. With the Supreme Court declining to hear the case, that's the end of the matter. -KT | | | |  | | It's been a big month for drug approvals, with the tally that includes two new molecular entities -- Vertex's cystic fibrosis drug Kalydeco and Genentech's cancer drug Erivedge. That follows the approval of three NMEs in January. The real fireworks, however, were not about an approval but rather a positive advisory panel. Vivus nearly doubled after getting a 20-2 vote in favor of its weight loss drug Qnexa. Although we certainly know that doesn't guarantee approval from an FDA that asked some skeptical questions of the advisory panel, the stock is holding on to those gains. Here's hoping! -KT | | | |  |
Karl Thiel is an analyst for The Motley Fool, a columnist for BioWorld Today, and a contributor to Nature Biotechnology. He lives in Portland, Oregon.
You may contact Karl Thiel at Karl.thiel@biospace.com.
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