This BioTech Sector is Making Waves 🌊

Welcome to the Dose.

A Newsletter dedicated to Biotech entrepreneurship, investing and technology.

In this edition, we cover the biggest mergers and acquisitions of 2024, shedding light on the strategic moves reshaping the industry. We spotlight billionaire Arie Belldegrun, a visionary scientist turned entrepreneur who has made billions from a biotech hat trick. We also cover San Diego, an area of unprecedented growth in the last few years.

REPORT
Massive Mergers: The 5 Biggest Acquisitions of 2024

While most biotechs are battening down the hatches, a lucky few out there have cash to play with. Here are the five biggest acquisitions of 2024.

Alpine Immune Sciences (Acquired by Vertex for $4.9 billion)

Alpine’s povetacicept is an exciting and promising candidate for patients with IgA nephropathy, an autoimmune disease that causes kidney inflammation which can interfere with the kidneys' ability to filter waste from the blood over time.

It affects approximately 130,000 people in the U.S. There are no current approved therapies for IgA nephropathy. Phase II results have shown best-in-class efficacy for the disease, with a Phase 3 study starting in the second half of 2024. 

CymaBay (Acquired by Gilead for $4.3 billion)

Gilead's strategic acquisition of CymaBay is a significant move in the biotech space, aimed at strengthening its portfolio in metabolic and liver diseases.

CymaBay's lead candidate, seladelpar, has shown exceptional promise in treating primary biliary cholangitis (PBC), a chronic liver disease that gradually destroys the bile ducts in the liver. PBC affects an estimated 65,000 people in the U.S., and although there are treatments available, many patients experience inadequate response or intolerable side effects.

The results from CymaBay’s Phase III studies indicate that seladelpar not only meets but exceeds the current efficacy standards for PBC treatment. With an excellent safety profile and the potential for once-daily oral administration, seladelpar represents a major advancement for patients struggling with this debilitating disease.

The ongoing Phase III trial, set to conclude by late 2024, could solidify seladelpar's place as a best-in-class therapy for PBC, offering hope for improved quality of life for thousands of patients.

MorphoSys (Acquired by Novartis for €2.7 billion)

Novartis's acquisition of MorphoSys is a strategic move to bolster its oncology pipeline, particularly with MorphoSys's flagship antibody, tafasitamab, a potent treatment for relapsed or refractory diffuse large B-cell lymphoma (DLBCL).

DLBCL is an aggressive type of non-Hodgkin lymphoma affecting roughly 27,000 patients annually in the U.S. Tafasitamab, in combination with lenalidomide, has shown compelling efficacy and a manageable safety profile in Phase III studies. 

Deciphera Pharmaceuticals (Acquired by Ono Pharmaceuticals for $2.4 billion)

Ono Pharmaceuticals' acquisition of Deciphera Pharmaceuticals is a strategic expansion into the realm of precision oncology, particularly with Deciphera’s leading candidate, ripretinib, for gastrointestinal stromal tumors (GIST).

GIST is a rare type of cancer affecting the digestive tract, with approximately 4,000 to 6,000 new cases diagnosed annually in the U.S. Ripretinib, a switch-control tyrosine kinase inhibitor, has demonstrated impressive efficacy in treating GIST patients who have exhausted other treatment options. Phase III trials have shown ripretinib to significantly prolong progression-free survival and improve patient outcomes. 

Fusion Pharmaceuticals (Acquired by AstraZeneca for $2 billion)

Novartis's acquisition of Fusion Pharmaceuticals helps to add to the Pharma giant’s radiopharmaceutical portfolio significantly.

Fusion's novel targeted alpha therapies (TATs), particularly FPI-1434, are designed to deliver potent alpha-emitting isotopes directly to cancer cells, sparing healthy tissue. FPI-1434, aimed at treating solid tumors with high unmet needs, has shown promising early clinical data, indicating significant anti-tumor activity.

CASE STUDY
First Steps: How Arie Belldegrun Went From Researcher to Billionaire

To say that everything Arie Belldegrun touches turns to gold would be an understatement.

With three successful biotech exits worth billions of dollars, the UCLA cancer researcher turned entrepreneur is not slowing down anytime soon. 

Three Biotech Exits in 10 Years

From 2007 to 2017, Belldegrun played a critical role in forming and directing Agensys, Cougar Biotechnology and Kite Pharma. These companies focused on immunotherapies that use the body’s immune system to fight cancer. These companies sold for a collective $13.4 billion dollars. 

From researcher to entrepreneur: how’d he start?

The critical play that catapulted Belldegrun from your typical scientist to entrepreneur was simple: collaborate with UCLA’s research institution and not against them. 

Belldegrun started as a UCLA prostate cancer researcher but he realized early on that his research needed to leave the lab if it was to  make a significant impact in the field of oncology. 

UCLA had incredible scientists, patented technology and access to funding. All the tools for Belldegrun to build a successful cancer therapeutic. Agensys was his first venture away from the bench. 

The Play

Reach out to your institutions and see if you can collaborate to take your research to market. Too much valuable research isn’t making it out of the lab.

Isn’t three successful exits enough Arie?

Not for this man. Arie has his sights set on building a biotech sector in Los Angeles that can compete with biotech hubs in Boston and the San Francisco Bay Area. He has established Bellco Capital, a private equity company, as well as a private immunology institute. This institute will be funded by marketable R&D rather than relying on universities for funding. Over the coming decades, it aims to generate hundreds of new companies.

THE WEEKLY DOSE

• Pfizer has decided to proceed with their once-a-day obesity drug, Denuglipron

• Novo Nordisk’s once-a-week insulin treatment was rejected by the FDA.

• Eli Lilly’s Alzheimer's drug has been approved by the FDA.

• Biden Administration to lower the cost of 64 prescription drugs in Q3 2024.

SCENE
San Diego: The Biotech Sector that Keeps on Winning

The city's biotech sector keeps making headlines, with the latest being the acquisition of San Diego-based Radionetics by pharmaceutical giant Eli Lilly. This is just one of many recent successes for the region. We dig a little deeper to uncover the latest victories and achievements in San Diego's thriving biotech landscape.

Eli Lilly Partners with Radionetics

San Diego-based Radionetics has entered into a substantial partnership with pharmaceutical giant Eli Lilly. Eli Lilly has secured exclusive rights to acquire Radionetics for $1 billion after a certain period, with Radionetics receiving $140 million upfront to advance its oncology pipeline. Radionetics focuses on developing radiopharmaceuticals, which use radioactive elements to diagnose and treat diseases, including novel treatments for solid tumors. CEO Paul Grayson expressed optimism about the collaboration, citing Eli Lilly's expertise in oncology and radiopharmaceuticals.

RayzeBio Acquired by Bristol Myers Squibb

In another significant move, RayzeBio, another local radiopharmaceutical company, was acquired by Bristol Myers Squibb for $4.1 billion in December, following its public debut. This acquisition highlights the increasing interest of big pharma in radiopharmaceutical technologies.

Iambic Therapeutics Secures $50 Million Investment

Iambic Therapeutics, a San Diego company leveraging AI for drug discovery, raised $50 million in its latest funding round. The company uses AI to model protein structures, aiming to develop therapies for treatment-resistant solid tumors, including breast cancer. The round, led by Mubadala Capital and Exor Ventures, brings Iambic's total Series B financing to $100 million.

Avidity Biosciences Raises $461 Million

Avidity Biosciences, specializing in RNA therapeutics, raised approximately $461 million through a public stock offering. This follows a previous round, bringing their total fundraising to over $850 million within six months. Avidity's pipeline includes Antibody Oligonucleotide Conjugates (AOCs) targeting rare neuromuscular diseases like myotonic dystrophy type 1, facioscapulohumeral muscular dystrophy, and Duchenne muscular dystrophy.

Illumina Spins Off Grail

Illumina has officially spun off Grail, its cancer test maker, after regulatory challenges nullified a $7 billion acquisition deal. The spin-off, finalized on June 24, sees Grail becoming a separate public entity, with Illumina retaining a 14.5% stake. Illumina reported significant impairment charges related to this spin-off but remains committed to supporting Grail's groundbreaking technology.