Emergent BioSolutions Announces Successful Completion of Offering of 3.875% Senior Unsecured Notes Due 2028

On August 7, 2020 Emergent BioSolutions Inc. (NYSE:EBS) (the "Company") reported that it has completed its previously announced offering of $450 million in aggregate principal amount of its 3.875% Senior Unsecured Notes due 2028 (the "Notes") (Press release, Emergent BioSolutions, AUG 7, 2020, View Source [SID1234569793]).

Schedule your 30 min Free 1stOncology Demo!
Discover why more than 1,500 members use 1stOncology™ to excel in:

Early/Late Stage Pipeline Development - Target Scouting - Clinical Biomarkers - Indication Selection & Expansion - BD&L Contacts - Conference Reports - Combinatorial Drug Settings - Companion Diagnostics - Drug Repositioning - First-in-class Analysis - Competitive Analysis - Deals & Licensing

                  Schedule Your 30 min Free Demo!

The Notes are fully and unconditionally guaranteed on a senior unsecured basis by all of the Company’s direct and indirect subsidiaries that guarantee debt under its credit facilities. The Company has used the net proceeds of the offering to repay the $353 million outstanding under its $600 million revolving credit facility with the remainder to be used for general corporate purposes.

The Notes were offered in the United States to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and outside the United States pursuant to Regulation S under the Securities Act. The Notes were not registered under the Securities Act and may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act and applicable state securities laws.

This press release is neither an offer to sell nor the solicitation of an offer to buy the Notes or any other securities, and there shall not be any offer to sell, solicitation of an offer to buy or sale of the Notes in any jurisdiction in which, or to any person to whom, such an offer, solicitation or sale is unlawful. Any offers of the Notes will be made only by means of an offering memorandum.

US FDA Grants Rare Pediatric Disease Designation (RPDD) to Paxalisib for DIPG

On August 7, 2020 Kazia Therapeutics Limited (ASX: KZA;NASDAQ: KZIA), an Australian oncology-focused biotechnology company, reported that the United States Food and Drug Administration (FDA) has awarded Rare Pediatric Disease Designation (RPDD) to Kazia’s paxalisib (formerly GDC-0084) for the treatment of Diffuse Intrinsic Pontine Glioma (DIPG), a rare and highly-aggressive childhood brain cancer (Press release, Kazia Therapeutics, AUG 7, 2020, View Source [SID1234564081]).

Schedule your 30 min Free 1stOncology Demo!
Discover why more than 1,500 members use 1stOncology™ to excel in:

Early/Late Stage Pipeline Development - Target Scouting - Clinical Biomarkers - Indication Selection & Expansion - BD&L Contacts - Conference Reports - Combinatorial Drug Settings - Companion Diagnostics - Drug Repositioning - First-in-class Analysis - Competitive Analysis - Deals & Licensing

                  Schedule Your 30 min Free Demo!

Key Points

With RPDD granted, Kazia may now be eligible to receive a ‘rare pediatric disease priority review voucher’ (PRV) if paxalisib is approved for DIPG
A PRV grants the holder an expedited six-month review of a new drug application by FDA. PRVs can be sold to other companies and have historically commanded prices between US$68 million and US$350 million
RPDD has been awarded following positive emerging preclinical data in DIPG, and with initial clinical efficacy data expected in 2H CY2020; positive clinical data may substantially enhance likelihood of a potential future PRV
The FDA’s RPDD program is intended to advance the development of drugs and biologics for certain serious and life-threatening rare pediatric diseases by providing incentives to industry. Most significant among these incentives is the potential access a priority review voucher at the time of a marketing authorization for the rare paediatric disease.

Kazia CEO, Dr James Garner, commented, "although glioblastoma remains our primary focus for paxalisib, we have been devoting increasing energy to developing the drug in childhood brain cancer as well. For patients diagnosed with DIPG, there are currently no FDA-approved drug treatments, and the average survival from diagnosis is around 9.5 months. The granting of RPDD by the FDA recognises our efforts and achievements so far and leaves us well placed to move paxalisib forward as a potential therapy for DIPG. We continue to be inspired by the dedication of our collaborators in this field and are committed to understanding whether paxalisib may be able to help in this enormously challenging paediatric disease."

Rare Pediatric Disease Designation

The Food and Drug Administration Safety and Innovation Act (2012) established FDA’s RPDD initiative. RPDD may be granted to drugs in development for diseases which primarily affect children (under the age of 18 years), have an incidence of less than 200,000 new cases per annum in the United States, and which are serious or life-threatening.

A sponsor of a drug with RPDD may request a Rare Pediatric Disease Priority Review Voucher (PRV) at the time of a marketing application to FDA. In effect, the PRV shortens the FDA review period for a future marketing application of any drug from 12 months to 6 months. PRVs can be sold to other companies and have historically been transacted at prices in the tens to hundreds of millions of dollars. For a large company launching a billion-dollar drug, the six-month acceleration in regulatory review can be of substantial economic value. In 2019, five pediatric PRVs were granted by FDA.

Phase I Clinical Trial in DIPG

In October 2018, St Jude Children’s Research Hospital in Memphis, TN commenced a phase I clinical trial of paxalisib in DIPG (NCT03696355). This study reported favourable top-line safety data in September 2019 and established 27 mg/m2 as the maximum tolerated dose for paediatric use. The study has completed recruitment, and initial efficacy data is anticipated during the second half of calendar 2020. This data will be used to guide future development of paxalisib in this disease.

Preclinical Research in DIPG

Dr Matt Dun and colleagues at the University of Newcastle, Australia have conducted extensive laboratory research with paxalisib, focused on phosphoproteomic analysis of its activity in DIPG cell lines. Phosphoproteomics is a new approach in cancer research that attempts to discern how complex signaling pathways are modified in tumours. Work at the Dun laboratory has shown paxalisib to be broadly active in DIPG and has identified a number of potential combination strategies which may enhance its activity. Initial data was presented at the Society for Neuro-Oncology (SNO) Pediatric Neuro-Oncology Basic and Translational Research Conference in San Francisco, CA, in May 2019.[1] Further ongoing work in animal models is expected to provide additional insight.

In parallel, related laboratory research is underway in the DMG Research Center at the University of Zurich, Switzerland, under the leadership of Dr Javad Nazarian. Dr Nazarian is also the principal investigator at Center for Genetic Medicine within the Children’s National Medical Center, Washington DC with a focus on DIPG. Laboratory research is also being conducted at St Jude Children’s Research Hospital by Dr Chris Tinkle and Dr Suzanne Baker and colleagues, in parallel to the ongoing phase I clinical trial at that center.

Next Steps

Kazia anticipates that initial efficacy data from the ongoing phase I study at St Jude will be available during 2H CY2020. Future clinical research directions will be determined on the basis of this data, in close consultation with collaborators.

Guardant Health Guardant360® CDx First FDA-Approved Liquid Biopsy for Comprehensive Tumor Mutation Profiling Across All Solid Cancers

On August 7, 2020 Guardant Health, Inc. (Nasdaq: GH) reported that the U.S. Food and Drug Administration (FDA) has approved Guardant360 CDx for tumor mutation profiling, also known as comprehensive genomic profiling (CGP), in patients with any solid malignant neoplasm (cancerous tumor) (Press release, Guardant Health, AUG 7, 2020, View Source [SID1234563317]). The Guardant360 CDx is also approved as a companion diagnostic to identify non-small cell lung cancer patients with epidermal growth factor receptor (EGFR) alterations who may benefit from treatment with Tagrisso (osimertinib). Guardant360 CDx offers patients and clinicians a simple, faster blood test to help inform personalized treatment options.

Schedule your 30 min Free 1stOncology Demo!
Discover why more than 1,500 members use 1stOncology™ to excel in:

Early/Late Stage Pipeline Development - Target Scouting - Clinical Biomarkers - Indication Selection & Expansion - BD&L Contacts - Conference Reports - Combinatorial Drug Settings - Companion Diagnostics - Drug Repositioning - First-in-class Analysis - Competitive Analysis - Deals & Licensing

                  Schedule Your 30 min Free Demo!

The Guardant360 CDx FDA approval was based on clinical and analytical validation data from over 5,000 samples. In a retrospective analysis of data from pivotal phase III clinical trials, FLAURA and AURA3, non-small cell lung cancer patients identified for treatment with Tagrisso (osimertinib) using the Guardant360 CDx demonstrated progression-free survival rates consistent with those identified using traditional biomarker testing. Since being introduced as a laboratory developed test (LDT), the Guardant360 liquid biopsy LDT has become widely accepted for blood-based CGP with more than 150 peer-reviewed publications.1 It has been used by more than 7,000 oncologists nationwide, and more than 150,000 Guardant360 tests have been performed to date.1 The test is broadly covered by Medicare and many private payers, representing over 170 million lives.1

"The FDA approval of Guardant360 CDx is a landmark decision, demonstrating the value liquid biopsy delivers to oncologists and more importantly, the patients they treat. Traditional tissue biopsy-based tumor profiling, which is often invasive and has longer turnaround times, can contribute to delays in starting treatment and possibly suboptimal therapy. We applaud the FDA for their collaborative review process and for approving the first comprehensive genomic profiling liquid biopsy test," said Helmy Eltoukhy, Guardant Health CEO. "We are confident that our FDA approval will help accelerate wider adoption of guideline-recommended genomic profiling, increase the number of advanced cancer patients who receive potentially life-changing treatments, and pave the way for new companion diagnostic developments for the Guardant360 CDx."

"Personalized medicines such as Tagrisso have been truly life-changing for many non-small cell lung cancer patients who have certain EGFR mutations and are most likely to benefit from this medicine," said Dr. Jhanelle Gray, Senior Member and Chair, Department of Thoracic Oncology, Co-Leader, Chemical Biology & Molecular Medicine Program, Moffitt Cancer Center. "It is crucial that all patients are comprehensively tested before starting treatment to ensure they receive the most appropriate personalized treatment option available."

Each year, more than 600,000 people die from cancer in the United States,2 many of whom may have benefitted from CGP to guide a more personalized treatment plan based on a growing list of effective CGP-informed targeted therapies. Already in 2020, more new targeted therapies have been approved by the FDA compared to previous years. Clinical studies show that patients receiving targeted therapies have improved progression-free survival and higher overall response rates relative to chemotherapy or immunotherapy.3-9 Clinical adoption of targeted therapies lags behind medical guidelines due to several factors, including insufficient tissue for biopsy, which is the case for as many as 30 percent of solid cancer patients.10-12

Since the company’s inception, Guardant Health has been dedicated to unlocking the potential of liquid biopsy to transform cancer by enabling precision oncology at all stages of the disease. The FDA approval of its Guardant360 CDx for tumor mutation profiling and as a companion diagnostic for Tagrisso (osimertinib) represents a critical milestone in the company’s mission to conquer cancer with data. The Guardant360 CDx is also being developed as a companion diagnostic for investigational products in development by other collaborators, including Amgen, Janssen Biotech, Inc., and Radius Health, Inc.

Merrimack Reports Second Quarter 2020 Financial Results

On August 7, 2020 Merrimack Pharmaceuticals, Inc. (Nasdaq: MACK) ("Merrimack" or the "Company") reported its second quarter 2020 financial results for the period ended June 30, 2020 (Press release, Merrimack, AUG 7, 2020, View Source [SID1234563244]).

Schedule your 30 min Free 1stOncology Demo!
Discover why more than 1,500 members use 1stOncology™ to excel in:

Early/Late Stage Pipeline Development - Target Scouting - Clinical Biomarkers - Indication Selection & Expansion - BD&L Contacts - Conference Reports - Combinatorial Drug Settings - Companion Diagnostics - Drug Repositioning - First-in-class Analysis - Competitive Analysis - Deals & Licensing

                  Schedule Your 30 min Free Demo!

"We are pleased by recent news releases from both Ipsen Pharmaceuticals and Elevation Oncology, which are conducting separate programs which could result in milestone payments to Merrimack. Ipsen announced receipt of Fast Track designation from the FDA for liposomal irinotecan (ONIVYDE) and also recently presented Phase I/II clinical data evaluating liposomal irinotecan (ONIVYDE) as an investigational first-line combination treatment for metastatic pancreatic cancer. Elevation Oncology has recently announced that it has raised $32.5 million in a Series A financing which will enable it to progress the clinical development of seribantumab" said Gary Crocker, Chairman of Merrimack’s Board of Directors. "In addition, Merrimack made continued progress in reducing our operating expenses during the second quarter of 2020, and we expect to see continued reductions during the second half of 2020."

Second Quarter 2020 Financial Results

Merrimack reported net loss of $1.2 million for the second quarter ended June 30, 2020, or $0.09 per basic share, compared to a net loss of $9.4 million, or $0.71 per basic share, for the same period in 2019.

No research and development expenses were recognized for the second quarter ended June 30, 2020 compared to $4.7 million for the same period in 2019.

General and administrative expenses for the second quarter ended June 30, 2020 were $1.2 million, compared to $5.9 million for the same period in 2019.

As of June 30, 2020, Merrimack had cash and cash equivalents and investments of $15.7 million, compared to $16.6 million as of December 31, 2019.

As of June 30, 2020, Merrimack had 13.4 million shares of common stock outstanding.

Updates on Programs Underlying Potential Milestone Payments

Ipsen Pharmaceuticals

On June 17, 2020 Ipsen Pharmaceuticals publicly announced that it had received FDA Fast Track designation for liposomal irinotecan (ONIVYDE) as a first-line combination treatment for metastatic pancreatic cancer.
On July 1, 2020 Ipsen Pharmaceuticals publicly announced that it has presented Phase I/II clinical data evaluating liposomal irinotecan (ONIVYDE) as an investigational first-line combination treatment for metastatic pancreatic cancer at the ESMO (Free ESMO Whitepaper) World Congress on Gastrointestinal Cancer, and confirmed that is has initiated the NAPOLI-3 Phase III clinical study (NCT04083235) comparing the safety and efficacy of liposomal irinotecan + 5-fluorouracil/leucovorin (5-FU/LV) + oxaliplatin (OX) (NALIRIFOX) to gemcitabine + nab-paclitaxel in the first-line setting.
Elevation Oncology

On July 21, 2020 Elevation Oncology publicly announced that it had raised a $32.5 M Series A financing to support various activities including the clinical development of seribantumab.

Vigeo’s Tumor Microenvironment Platform Expands Indications and Combo Therapy Possibilities

On August 7, 2020 Vigeo Therapeutics reported that it is expanding indications for its tumor microenvironment (TME)-targeting oncology platform, which inhibits tumor growth by reprogramming normal cells that were recruited and coopted by a tumor (Press release, Vigeo Therapeutics, AUG 7, 2020, View Source [SID1234563243]). Dose expansion for its Phase Ib/II study is ongoing for multiple solid tumors, and combination studies with immune checkpoint inhibitors and with standard-of-care chemotherapy are being planned for the latter half of this year.

Schedule your 30 min Free 1stOncology Demo!
Discover why more than 1,500 members use 1stOncology™ to excel in:

Early/Late Stage Pipeline Development - Target Scouting - Clinical Biomarkers - Indication Selection & Expansion - BD&L Contacts - Conference Reports - Combinatorial Drug Settings - Companion Diagnostics - Drug Repositioning - First-in-class Analysis - Competitive Analysis - Deals & Licensing

                  Schedule Your 30 min Free Demo!

"The company was founded on the idea that targeting the tumor microenvironment (TME) is best strategy for treating cancer," Jing Watnick, Ph.D., CEO, said during a presentation at the LifeSci Partners Summer Symposium on August 5.

Vigeo’s platform approach "reprograms myeloid-derived suppressor cells in IO-cold patients’ TME, activates cytotoxic T lymphocyte (CTL) cells and M1 Tumor-associated macrophages (TAMs) in that microenvironment, and converts the environment from immuno-suppressive to immuno-stimulated," she explained.

Within the industry, therapeutic programs that target the tumor microenvironment have been beset by challenges "related to the size of the protein, delivery and stability," she said. "Our program lets us overcome those burdens."

VT1021, Vigeo’s lead compound, is a first-in-class CD36/CD47 dual-targeting compound.

"VT1021 is a five amino acid cyclic peptide derived from prosaposin (Psap). Psap is a precursor of saposin A, B, C and D, and functions as a lipid hydrolase activator," Watnick said.

The compound binds to myeloid-derived suppressor cells in the tumor microenvironment and induces the production of thrombospondin-1 (TSP-1) within the tumor. Then TSP-1 binds both to CD36 and CD47 to induce antitumor effects and therefore suppress the growth of tumors that have high expression of CD36 or CD47.

"That is a very important aspect of the compound," Watnick noted. "By binding to CD36, CD47, and other cell surface molecules, TSP-1 induces apoptosis in tumor and endothelial cells; regulates cell adhesion, migration, invasion, and proliferation; and modulates the immune and inflammatory responses. TSP-1 is fully activated in the TME."

Breaking down the interactions by binding site, she pointed out that when TSP-1 binds to CD36, it induces apoptosis in tumor and endothelial cells and increases the M1:M2 macrophage ratio, which affects cell adhesion and survival. By binding to CD47, TSP-1 stimulates CD8+ T cell functions, and also blocks what she called "do not eat me" signals, allowing the macrophages to kill the tumor cells. It also increases activity of CTL cells, allowing better targeting of tumor cells.

Compared to magrolimab, an anti-CD47 therapy, Watnick said, "VT1021 has 1,000 times more affinity than magrolimab, so it avoids the toxicity of some of the anti-CD47 programs. It also has the benefit of binding to CD36," which makes it more potent than anti-CD47 therapies.

In preclinical studies, VT1021 showed strong single-agent efficacy, exhibited by tumor regression and inhibition of metastasis in mouse models of ovarian, pancreatic, breast, glioblastoma, prostate, lung and melanoma solid tumors.

"What’s most interesting," Watnick said, "is that in the ovarian tumor model, we stopped treatment at day 50 and then re-challenged the model one month later. Within one week of re-administration, VT1021 again triggered antitumor activity and again caused tumor regression."

In the pancreatic tumor model, the tumor size was reduced by half between day 25, when the treatment was administered, and day 45 when the models were assessed. At that time, she continued, "The animals also had slightly higher M1:M2 ratios, which indicated that the treatment was reprogramming the microenvironment."

As Watnick noted, "Resistance to various chemotherapies strongly correlates to upregulation of CD47, which sensitizes cells to TSP-1-mediated killing. When combined with anti-PD-1 therapy, VT1021 alleviates several sources of tumor suppression." Vigeo expects to begin combination trials by year’s end.

In pancreatic cancer studies, combining VT1021 and an anti-PD-1 monoclonal antibody (mAb) resulted in synergistic effects that improved survival and regressed the tumor. Watnick showed data from a study by Sui, et al, scheduled for Nature later this year. In that chart, the longest survivability for subjects receiving the anti-PD-1 mAb was 35 days after the initial treatment; for those receiving VT1021, the longest survival was 40 days; and for those receiving the combination therapy the longest survival was 75 days.

Data from Vigeo Therapeutics’ dose escalation study also appeared promising. Of the 28 patients who could be evaluated, 43% achieved a partial response or disease stability. One (with thymoma, a tumor originating from the epithelial cells of the thymus) had a partial response that probably exhibited high expression levels of CD36 and CD47. "I said ‘probably’ because the size of the tumor was too small to biopsy, but a biomarker array analysis concluded it most likely had high expression levels of DC36 and CD47.

"The 11 who achieved disease stability had very striking binding, which made us very excited," she continued. Based on those indications, "High CD36 and CD47 expression with TSP-1 induction could be a very strong panel of indicators of clinical response."

That possibility is being evaluated in the clinic now.

Vigeo Therapeutics’ clinical trial development plan for VT1021 calls for completing the expansion studies for multiple indications, followed by an FDA meeting in 2021, leading to a monotherapy trial for select indications. Watnick said she is hoping for accelerated approval in 2023 and the onset of a confirmatory trial in 2024.

For combination trials, the company plans to stagger the launches for four indications. If they launch as scheduled, completion of the last trial is anticipated by the end of 2022.

The Cambridge, Massachusetts company raised a total of $27.5 million in Series A and Series B rounds through Morningside Venture Investments in 2015 and 2018. Now it is raising Series C funding to support continued clinical development.

"We’re thinking of going out aggressively, presenting our data to potential partners," Watnick added. "We’re open to discussions."