Shasqi Demonstrates Chemistry-based Platform Produces Local and Systemic Anti-tumor Response in Preclinical Cancer Model

On June 22, 2020 Shasqi, a leader in chemistry based locally-activated cancer drugs, reported data showing that the company’s lead candidate SQ3370 produced robust anti-tumor responses both at the target site and at distal lesions in a preclinical cancer model (Press release, Shasqi, JUN 22, 2020, View Source [SID1234561411]). The study, titled "SQ3370, a Local Activation Therapy of Cytotoxic Agents, Produces Sustained Responses in Target and Distal Lesions via Immune Activation," was presented in a poster with audio at the American Association for Cancer Research (AACR) (Free AACR Whitepaper) Virtual Annual Meeting II.

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Shasqi’s SQ3370 is a novel investigational drug product that uses bioorthogonal "click" chemistry reactions to capture and activate an attenuated anthracycline prodrug at the target tumor site enabling higher doses of the cancer drug while reducing side effects commonly experienced with conventional chemotherapy. Unlike other therapeutic approaches, Shasqi’s technology is solely based on chemistry and is independent of tumor biology such as biomarker expression and enzymatic activity.

This new therapeutic modality can precisely control the duration of exposure and magnitude of activated drugs at a specific area in the body. This allows the exploration of therapeutic benefits of a drug that had been previously limited by existing routes of administration in the clinic (oral, intravenous, direct injection or controlled release).

"SQ3370 is powered by an innovative chemistry based approach to precisely deliver high doses of a cancer drug locally and potentially activate the immune system against human tumors, independent of biological markers," said Carolyn R. Bertozzi, Ph.D., professor of chemistry and HHMI investigator at Stanford University.

SQ3370 consists of two components – SQL70, a hyaluronic acid-based biomaterial and SQP33, a prodrug of Doxorubicin, a commonly used chemotherapy. During treatment, SQL70 biomaterial is first injected at the target tumor site. SQP33 prodrug is then given systemically through daily IV infusions for 5 days. SQP33 prodrug remains in attenuated form in the body until it reaches the target tumor site and is captured by SQL70. Once captured, SQP33 is converted and released as active Doxorubicin at the target tumor.

In the study, Shasqi’s scientists evaluated SQ3370 in a preclinical cancer model in mice bearing two tumors, where the target lesion was injected with the SQL70 biomaterial and the distal lesion was not.

Treatment with SQ3370 significantly prolonged overall survival by reducing target lesions compared to controls. Interestingly, SQ3370 also reduced tumor growth at the distal lesion, which was not injected with the SQL70 biomaterial. Together, this suggests SQ3370 can induce both local and systemic anti-tumor responses.

"Our data demonstrate that SQ3370 can significantly reduce tumor size in both, tumors injected with the biomaterial, and at distal lesions. The preclinical data suggests that our approach can be relevant against the critical challenges facing clinicians today: undetectable lesions or widely disseminated solid tumors," said Nathan Yee, Ph.D., Senior Scientist at Shasqi and an author of the study.

Immune biomarker analysis indicates that SQ3370 triggers an immune response as shown by an increase in cytotoxic and helper T cells, and a decrease in regulatory T cells in both target and distal lesions. To further validate the immune activating properties, combination treatment with SQ3370 and an immune-activating agent led to more robust and sustained anti-cancer responses than controls with conventional Doxorubicin.

Additionally, in a separate study in rats, SQ3370 reduced adverse exposure to heart, kidney and liver tissue compared to conventional Doxorubicin treatment, indicating lower off-target toxic effects.

"Because of its highly modular nature, we can use our platform on numerous cancer drugs with doses traditionally limited due to toxicity and uncover new pharmacological benefits," said José M. Mejía Oneto, M.D., Ph.D., Founder and CEO of Shasqi. "To evaluate the translation of our findings to humans, we are initiating our first clinical trial of SQ3370 as a monotherapy in advanced solid tumors, and expect to dose our first patient shortly."

The entire AACR (Free AACR Whitepaper) poster presentation plus an audio description of the data by Dr. Yee, can be found here. In addition, the abstract for the poster can be found here.

Saniona raises SEK 22 million through sales of shares in Scandion Oncology

On June 22, 2020 Saniona (OMX: SANION), a clinical-stage biotech company focused on rare diseases, reported that it has raised SEK 22 million (USD 2.3 million) through the sale of shares in Scandion Oncology A/S (Spotlight Stock Market: SCOL) (Press release, Saniona, JUN 22, 2020, View Source(OMX%3A%20SANION)%2C,Spotlight%20Stock%20Market%3A%20SCOL).&text=The%20sale%20of%20shares%20brings,in%20Scandion%20Oncology%20below%2015%25. [SID1234561406]).

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Saniona sold 754,577 shares of Scandion Oncology. The sale of shares brings Saniona’s ownership stake in Scandion Oncology below 15%. Proceeds will be used to continue Saniona’s advancement of mid/late-stage clinical trials with Tesomet in two rare eating disorders: hypothalamic obesity (HO) and Prader Willi Syndrome (PWS), as well as to build its U.S.-based leadership team in support of these programs.

"Saniona continues to tighten our focus on building a global, commercial-stage rare disease company, which will require significant capital investment over the next few years" said Rami Levin, CEO of Saniona. "The 2017 spin-out of our oncology assets into Scandion Oncology has resulted in a win-win situation, creating a highly successful cancer start-up in Scandion Oncology, while allowing Saniona to remain strategically focused on rare diseases, and providing funding for our rare disease programs."

Saniona is preparing to initiate two pivotal clinical trials over the next 12 months, one in hypothalamic obesity and the other in Prader Willi Syndrome. This follows the recent release of the positive top line data from its phase 2 trial in Hypothalamic obesity and the positive FDA interactions on Tesomet in Prader Willi Syndrome.

SinocellTech Closes $181 Million IPO on STAR Board; Triples in Initial Trading

On June 22, 2020 Beijing’s SinocellTech reported that it completed a $181 million IPO on Shanghai’s STAR Board and nearly tripled in price during its initial trading session (Press release, Sinocelltech, JUN 22, 2020, View Source [SID1234561390]). The offering was priced at 25.64 RMB per share and ended its first session at 73.07 RMB, giving SinocellTech a market capitalization of nearly $4.5 billion. Sinocelltech is a biotech company that discovers and develops mAbs, recombinant proteins and vaccine products. The company has 23 products in its pipeline, including 21 novel differentiated drugs and two biosimilars.

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Hikma announces buy back of up to approximately £295 million of shares from Boehringer Ingelheim

On June 22, 2020 Boehringer Ingelheim Invest GmbH ("Boehringer Ingelheim") has reported its intention to exit in full its investment in Hikma Pharmaceuticals PLC ("Hikma" or the "Company") (Press release, Hikma, JUN 22, 2020, View Source [SID1234561382]). As of today, Boehringer Ingelheim holds 40 million ordinary shares in Hikma, which represents approximately 16.4 per cent. of the issued ordinary share capital and voting rights in the Company.

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Boehringer Ingelheim has commenced an accelerated bookbuild offering (the "Bookbuild") to sell up to approximately 28 million shares in Hikma (the "Placing Shares") to institutional investors only (the "Placing"). Concurrently with the Placing, Hikma has committed to buy back from Boehringer Ingelheim such number of ordinary shares ("the Buy Back Shares") as does not exceed an aggregate value of £295 million (being an amount approximately equal to 4.99% of the aggregate market value of all the Shares of the Company at the close of business on 22nd June 2020, less the value of the commitment fee described below) (the "Buy Back"). The purchase price for each of the Buy Back Shares will be equal to the sale price for each of the Placing Shares (the "Buy Back Price"). The Buy Back Price is subject to the price limit set out below. Hikma has separately today entered into an agreement with Boehringer Ingelheim pursuant to which Hikma will receive a commitment fee of 2 per cent. of the aggregate value of the Buy Back Shares acquired at the Buy Back Price (the "Commitment Fee"). Citigroup Global Markets Limited ("Citi") will act as riskless principal for the purpose of the Buy Back.

The Buy Back is subject to the satisfaction of a number of conditions, including the successful pricing of the Placing and provided that the price payable by Hikma for the Buy Back Shares does not exceed a per share amount equal to £24.71, which, net of the 2% commitment fee, is equal to approximately £24.22, being the average closing price of the five business days preceding to today’s date. If the Placing Price is within the pricing limits that apply to the Buy Back Price, the Placing cannot proceed unless the Buy Back proceeds.

Hikma will fund the Buy Back from cash and available facilities. Hikma intends to hold the Buy Back Shares in treasury and Hikma will not receive any proceeds from the Placing. Following the successful completion of the Placing and the Buy Back, Boehringer Ingelheim would no longer hold any shares in Hikma.

The shares being sold by Boehringer Ingelheim were issued by Hikma as part of the consideration for the acquisition of Roxane Laboratories in February 2016. The Buy Back demonstrates the Board’s confidence in Hikma’s future prospects. Since its initial public offering ("IPO") in 2005, Hikma has delivered a total shareholder return of approximately 926%, exceeding the FTSE 100 total shareholder return of approximately 105%.

As at 31 December 2019, Hikma’s net debt to core EBITDA ratio was 0.4x.

Boehringer Ingelheim is a related party of Hikma for the purposes of the Listing Rules by virtue of its approximately 16.4 per cent. shareholding in Hikma. The Buy Back by Hikma and the associated payment of the Commitment Fee by Boehringer Ingelheim constitute a smaller related party transaction falling within LR 11.1.10R(1) and this announcement is therefore made in accordance with LR11.1.10R(2)(c). The aggregate amount of the Buy Back and the commitment fee cannot be higher than approximately £301 million.

Citi and Goldman Sachs International ("Goldman Sachs") are acting as joint financial advisers to Hikma on the Buy Back.

Invitae and ArcherDX to create a global leader in comprehensive cancer genetics and precision oncology

On June 22, 2020 Invitae (NYSE: NVTA), a leading genetics company, and ArcherDX, a leading genomics analysis company democratizing precision oncology, reported the companies have entered into a definitive agreement under which Invitae will combine with ArcherDX to create a genetics leader with unrivaled breadth and scale in cancer genetics and precision oncology (Press release, Invitae, JUN 22, 2020, View Source [SID1234561371]).

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The combined company will be poised to transform care for cancer patients, accelerating adoption of genetics through the most comprehensive suite of products and services available. Integrating germline testing, tumor profiling and liquid biopsy technologies and services in a single platform will enable precision approaches from diagnostic testing to therapy optimization and monitoring, expanding access to best-in-class personalized oncology.

"From the beginning, Invitae’s goal has been to aggregate the world’s genetic tests into a single platform in service of our mission to bring comprehensive genetic information into mainstream medicine. Today, we take another major step forward in that effort," said Sean George, Ph.D., co-founder and chief executive officer of Invitae.

"ArcherDX and Invitae share a foundational belief in the power of genomic information to impact care. We are thrilled to unite with Invitae to form the leading hub for precision oncology, diagnostics, therapy optimization and monitoring, with an opportunity to accelerate both patient care and shareholder value," said Jason Myers, Ph.D., chief executive officer and co-founder of ArcherDX. "ArcherDX was founded to democratize precision oncology with best-in-class products that are personal, actionable and available in local care settings. We see STRATAFIDE DX as a significant near-term value driver, currently under development for cancer therapy optimization, while PCM provides an exciting opportunity to transform cancer care through multiple monitoring applications. ArcherDX products, workflow and powerful bioinformatics solutions provide an opportunity to advance precision oncology into regional and community settings and address an estimated $45 billion market opportunity. Together with Invitae, we look forward to expanding our impact beyond oncology, driving significant value through shared expertise to inform healthcare throughout life, globally."

"Integrating all aspects of cancer genetics can transform care for patients and the flexibility that comes from both centralized and decentralized capabilities will uniquely position Invitae to meet the needs of customers worldwide," continued Dr. George. "By joining together, we will unite world-class capabilities in the hands of a talented team with complementary expertise and strong brands in service of a shared goal to improve healthcare for patients."

Accelerating access and adoption of genetics to improve cancer care

Broad adoption of precision oncology has been limited, particularly in regional and community settings where approximately 85 percent of patients receive care.1 Without precision oncology, late-stage cancer patients can suffer from poor prognosis and outcomes, while early-stage patients may receive an inaccurate prognosis that results in unnecessary treatment and delayed detection of recurrence.2,3

Uniting Invitae and ArcherDX will offer comprehensive support for precision oncology.

Invitae has quickly become a leader in diagnostic and hereditary risk testing and has strong relationships with clinicians caring for cancer patients, including cancer genetic counselors, oncologists and imaging centers.
ArcherDX’s platform, with its proprietary Anchored Multiplex PCR (AMP) chemistry at the core, has enabled it to develop industry-leading products and services under investigation to optimize therapy and enable cancer monitoring across liquid and tissue samples.
ArcherDX has developed and commercialized over 325 unique products, including research products and services in use by more than 300 laboratories worldwide and has collaborated with more than 50 biopharmaceutical companies and contract research organizations (CROs), providing services that enable biopharmaceutical companies, including partners such as AstraZeneca, BMS and Bayer, to cost-effectively accelerate drug development.
ArcherDX is also currently developing in-vitro diagnostic (IVD) products, including STRATAFIDE DX, for therapy optimization, an estimated $5 billion market opportunity with U.S. Food and Drug Administration (FDA) submissions planned this year, and the broadly applicable Personalized Cancer Monitoring (PCM) in development for disease recurrence monitoring, therapy optimization including selection, response and modulation. Both STRATAFIDE DX and PCM have received Breakthrough Device designation from the FDA.
Together, the company will be ideally positioned to serve customers across the continuum, from individuals and community clinicians to biopharmaceutical partners, distribution partners, reference laboratories and academic centers. Invitae’s central laboratory provides support for customers who prefer to send out and can benefit from a full suite of services including reporting, clinician consultation and genetic counseling for patients, while ArcherDX’s decentralized model supports geographies and customers where local control of patient reporting is either desired or required.
With both centralized and local testing capabilities, the combined organization will offer breadth and flexibility in serving customers in more than 95 markets. Together, Invitae and ArcherDX will offer robust support for biopharmaceutical companies, from patient identification and screening, to biomarker identification and companion diagnostic development.

Transaction Terms

Under the terms of the agreement, Invitae will acquire ArcherDX for upfront consideration consisting of 30 million shares of Invitae common stock and $325 million in cash, plus up to an additional 27 million shares of Invitae common stock payable in connection with the achievement of certain milestones, for an overall transaction valued at approximately $1.4 billion. The transaction, which has been unanimously approved by the Boards of Directors of both companies, is expected to close in several months, subject to customary closing conditions including approval by the stockholders of Invitae and ArcherDX.

Financing Activities

In connection with the proposed combination, Invitae has arranged a strategic financing with over $400 million in financing commitments from a premier syndicate of life sciences investors, led by Perceptive Advisors. Invitae has entered into a definitive agreement to sell $275 million in common stock in a private placement at a price of $16.85 per share. The private placement is being supported by key existing investors in Invitae and Archer, including Casdin Capital, Deerfield Management, Driehaus Capital Management, Farallon, PBM Capital, Perceptive Advisors, Redmile Group, Rock Springs Capital, Soleus Capital, and one additional institutional investor. The placement is expected to close concurrently with the proposed combination, subject to the satisfaction of customary closing conditions. Invitae has also entered into a fully committed credit facility for up to $200 million with Perceptive Credit Opportunities Funds, subject to certain customary closing conditions.

Since the filing of its Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, Invitae has sold under its ATM facility approximately 2.6 million shares of common stock for aggregate gross proceeds of $46 million at an average price of $17.59 per share.

Invitae’s current expectations regarding its cash at transaction close would be approximately $425 million and its annualized near-term forward cash burn is expected to be approximately $130 million.

Advisors

Perella Weinberg Partners served as lead financial advisor to Invitae in connection with the business combination and Cowen served as co-financial advisor. Cowen served as lead-placement agent to Invitae for the private placement and Perella Weinberg Partners served as co-placement agent; Cowen served as exclusive financial advisor to Invitae in connection with the senior secured term loan facility. Evercore and J.P. Morgan Securities LLC acted as financial advisors to Archer.

Webcast

Management will host a conference call and webcast today at 5:00 a.m. PT / 6:00 a.m. MT / 8:00 a.m. ET to discuss the transaction. The dial-in numbers for the conference call are (866) 324-3683 for domestic callers and (509) 844-0959 for international callers, and the reservation number for both is 7097864. Please note, after dialing in, you will be prompted to enter the Conference ID and then the pound "#" sign to enter the call. Following prepared remarks, management will respond to questions from analysts, subject to time limitations.

The live webcast of the call and slide deck may be accessed by visiting the investors section of the company’s website at ir.invitae.com. A replay of the webcast and conference call will be available shortly after the conclusion of the call and will be archived on the company’s website.