July 16, 2015
By Mark Terry, BioSpace.com Breaking News Staff
Rumors are flying that three companies specializing in CAR-T cancer therapies may be attractive targets for acquisition. The big three in this area are Juno Therapeutics , Kite Pharma, Inc. , and bluebird bio . A potential fourth is Cellectis S/A.
CAR-T therapy involves removing particular white cells from the body called T cells. Fragments of an antibody that recognizes and targets specific cancer cells are then attached to the T cells and reinfused back into the patient. This programs the patient’s immune system to attack tumor cells. So far the technique has shown effectiveness and reasonable safety against blood cancers like leukemias and lymphomas. The results against solid tumors such as ovarian and pancreatic cancer have been less successful.
Investors appear to be hanging on any news involving CAR-T therapy, with one company’s disappointment affecting the stock value of other companies in the space. This occurred in April when Novartis AG presented data on a small study involving CAR-T with disappointing results. Novartis stock took a slight drop, but so did Juno, Kite and ZIOPHARM Oncology, Inc., another company working in the CAR-T space.
In a research note at the time, Matthew Harrison, an analyst with Morgan Stanley, said, “Much more work remains before we can have confidence that CAR-T therapy will be able to access the solid tumor market.”
A June 30 research report by Stefan Quenneville, analyst with Morningstar, took a look at Juno’s collaboration with Celgene and the overall CAR-T market. “Juno is widely viewed as a leader in the increasingly crowded CAR-T and TCR [T-Cell Receptor] space and has demonstrated compelling early-stage data in a number of hematological cancers with its CAR-T programs targeting CD19. We view the deal as a clear affirmation of the potential of these emerging technologies, both for Juno and other players, such as Kite Pharma.”
Although Juno is often viewed as the frontrunner in the CAR-T therapy market, Quenneville views Kite as very promising, although he does say that, “Kite is several years from having a potential product on the market, and its pipeline remains early-stage and reliant almost entirely on its CAR-T platform.”
He also points out that CAR-T is becoming a big focus for big companies and partnerships, citing Novartis, Juno, Pfizer Inc. /Cellectis, Johnson & Johnson /Transposagen Biopharmaceuticals, GlaxoSmithKline /Adaptimmune Ltd. and Celgene Corporation /Bluebird Bio.
Another hot area for cancer drug research are anti-PD-L1 drugs. On July 13, 2015, Genentech announced positive results for its drug atezolizumab in urothelial bladder cancer. This drug is a monoclonal antibody that interferes with a protein called PD-L1.
On June 2, 2015, Amgen (AMGN) announced a collaboration with Roche on a Phase Ib clinical trial to evaluate talimogene laherparepvec combined with atezolizumab for the treatment of triple-negative breast cancer and colorectal cancer with liver metastases.
Amgen announced a deal with Merck & Co. on May 29, 2015 to investigate Keytruda, Merck & Co.’s anti-PD-1 therapy with its own talimogene laherparepvec.
Another recent agreement connected to the anti-PD-1 area was Sorrento Therapeutics, Inc. and Culver City, Calif.-based NantWorks. The two companies created a global strategic partnership to jointly develop immunotherapies for cancer and autoimmune diseases, including in the anti-PD-1 arena.
One of the concerns about CAR-T therapy is how individualized it is, making it difficult to mass produce. It is both complicated and expensive and to date seems to be limited to blood cancers, although in that area of onco-immunotherapy, the results have been impressive.
“While valuations are not cheap,” said Darren Campili, head of health care investment banking for EMEA at Deutsche Bank AG in London in an statement to Bloomberg Business, “if the products were to work, the upside could be tremendous. The real question is whether a company has the scientific conviction that a product can succeed in the market.”
“Everyone is standing on the sideline, to see if there are advances in scalability,” said Fabian Wenner, an analyst at Kepler Cheuvreux in Zurich to Bloomberg Business. “Before that is visible, everyone is hesitant to invest much more because you could lose billions.”
As New Jersey Biotech Booms, Will It Overtake Other States As Prime Location?
A week after Celgene Corporation announced it is officially the mystery buyer of Merck & Co. ’s former 1 million-square-foot R&D site in Summit, N.J., it quickly became our most popular story last week.
The company announced last Wednesday that it is buying the space, ending months of speculation about what Big Pharma company might move into the neighborhood.
The Summit, N.J. site is zoned research/office. The New Jersey site would put operations closer to some of the major biotech and pharmaceutical hubs on the East Coast.
But, by far, the most tempting part of doing business in the state remains New Jersey’s operating tax credit, which allows companies to sell their net operating losses to the New Jersey Treasury. One of the state’s most recognizable biotechs, Celgene, used the program until it became profitable, which was key to it staying in the state, said local officials.
That has BioSpace is wondering if New Jersey is becoming the new face of biotech. What do you think? Can the Garden State compete with other longtime stalwarts like California or Boston?
