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Evotec and Carrick Therapeutics build strategic alliance

On October 4, 2016 Evotec AG (Frankfurt Stock Exchange: EVT, TecDAX, ISIN: DE0005664809) reported that in line with its strategy to participate in promising corporate formations it will deepen its already existing relationship with Carrick (Press release, Evotec, OCT 4, 2016, View Source [SID:SID1234515582]). Evotec will invest up to $ 6 m towards Carrick’s latest funding round. The total $ 95 m round was led by ARCH Venture Partners and Woodford Investment Management with participation from Cambridge Enterprise Seed Funds, Cambridge Innovation Capital, Google Ventures (GV), Lightstone Ventures, and Evotec AG.

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Carrick, headquartered in Dublin with R&D located in Oxford and Dublin has a clear vision for cancer patients: Its mission is to target the molecular pathways that drive the most aggressive and resistant forms of cancer in order to have a major impact on the lives of patients. Instead of banking on a single compound or biological mechanism, Carrick is building an innovative portfolio of first-in-class treatments that target multiple mechanisms of the most aggressive forms of cancer, and which will be tailored to an individual patient’s tumour. To support this mission Evotec will provide its full range of discovery and oncology services, through its discovery and pre-clinical platform. Carrick will progress multiple programmes through hit-to-lead and lead optimisation with the goal of delivering multiple development candidates.

Dr Werner Lanthaler, Chief Executive Officer of Evotec commented: "We are very excited to be part of creating and co-owning a next generation leading oncology company. Putting all Evotec’s tools that support innovation and capital efficiency at work will allow Carrick to very rapidly progress a first-in-class oncology pipeline."

Chief Executive of Carrick Therapeutics, Dr Elaine Sullivan, said: "This is a unique new venture in cancer treatment, backed by some of the highest quality investors in the field. There is a significant unmet need in cancer treatment, and targeting aggressive and resistant disease is an area where we can make a real difference to patients’ lives. Working with Evotec has allowed us to build a pipeline with optimal speed and highest quality."

No further financial details are disclosed.

Evotec’s financial guidance for 2016, also with regard to liquidity, remains unchanged, despite the recent investment in Topas Therapeutics and now Carrick Therapeutics.

PEGPH20 Selected For Inclusion In Groundbreaking Clinical Trial Initiative Designed To Transform Outcomes For Pancreatic Cancer Patients

On October 4, 2016 Halozyme Therapeutics, Inc. (NASDAQ: HALO), an oncology biotech developing novel oncology and drug-delivery therapies, reported that its investigational drug, PEGPH20, and a companion diagnostic assay for assessment of hyaluronan (HA) under development by Ventana Medical Systems, Inc. will be included in a groundbreaking pancreatic cancer clinical trial initiative called Precision Promise (Press release, Halozyme, OCT 4, 2016, View Source [SID:SID1234515575]).

The Precision Promise initiative aims to change the current treatment approach to pancreatic cancer, offering options to patients based on the molecular profile of their tumor. This is being accomplished through the Pancreatic Cancer Action Network leading an unprecedented collaboration that brings together clinicians, researchers, and drug developers. Precision Promise plans to enroll patients at 12 initial consortium sites in Spring 2017.

President and CEO Dr. Helen Torley said: "Halozyme is proud to be participating in this important initiative that has the potential to change how pancreas cancer is treated and improve outcome for patients. I want to recognize The Pancreatic Cancer Action Network for their visionary leadership in bringing the community together. The selection of PEGPH20 and incorporation of HA testing into the trial supports the science and promise of our targeted therapy."

Pancreatic cancer is the third-leading cause of cancer related death in the United States and is anticipated to become the second around 2020. Nationally, only 4 percent of pancreatic cancer patients enroll in clinical trials.

"Precision Promise is an unprecedented opportunity for patients and is vital to move the field forward," said Julie Fleshman, JD, MBA, president and CEO of the Pancreatic Cancer Action Network. "Instead of looking for the right patient for a clinical trial, we are designing the right clinical trial for each patient."

Halozyme’s PEGPH20 is an enzyme that targets and degrades HA in the tumor microenvironment. HA is a glycosaminoglycan – a chain of natural sugars distributed throughout human tissue – that can accumulate in higher concentrations around certain cancer cells, potentially constricting blood vessels and impeding the access of other therapies. Patients with high levels of HA will receive PEGPH20 in combination with other therapies. In preclinical models, this approach has enabled higher concentrations of the therapeutic agent or the body’s natural immune cells to reach the targeted tumor.

More information on Halozyme’s phase 3 clinical trial of PEGPH20, HALO-301, may be found at www.halo301.com and additional background and vision of Precision Promise may be found at www.pancan.org/precision-promise.

Daiichi Sankyo Announces New Strategic Immuno-Oncology Research Collaboration with AgonOx

On October 4, 2016 Daiichi Sankyo Company, Limited (hereafter, Daiichi Sankyo) reported that it has entered into a strategic collaboration with AgonOx, Inc., a privately held biotechnology company developing a pipeline of novel immunotherapy drugs targeting key regulators of the immune response to cancer, to develop an undisclosed immuno-oncology target (Press release, Daiichi Sankyo, OCT 4, 2016, View Source [SID:SID1234515573]).

Under terms of the agreement, Daiichi Sankyo and AgonOx will collaborate on preclinical development of the program. Following preclinical assessment, Daiichi Sankyo has an exclusive option to research, develop, manufacture and commercialize the program worldwide. Financial terms of the agreement were not disclosed.

"We are excited to collaborate with AgonOx, which has extensive expertise in validating the expression and function of immuno-oncology targets," said Antoine Yver, MD, MSc, Executive Vice President and Global Head, Oncology Research and Development, Daiichi Sankyo. "While this collaboration will help strengthen our immuno-oncology capabilities, it also aligns with our overall mission of discovering and delivering science that can change the standard of care for patients with cancer."

20-F – Annual and transition report of foreign private issuers [Sections 13 or 15(d)]

(Filing, Annual, Prima Biomed, 2016, OCT 3, 2016, View Source [SID:SID1234515551])

8-K – Current report

On October 3, 2016, Merrimack Pharmaceuticals, Inc. (the "Company") announced that it was implementing a 22% reduction in headcount as part of a major corporate restructuring with the objective of prioritizing its research and development on a focused set of systems biology-derived oncology products and strengthening its financial runway (Filing, 8-K, Merrimack, OCT 3, 2016, View Source [SID:SID1234515609]). The reduction in headcount will not impact the Company’s commercial team or the execution of ONIVYDE’s commercial launch and label expansion. The Company estimates that it will incur charges for one-time termination benefits in connection with this corporate restructuring of approximately $4.5 million to $5.5 million for employee severance, benefits and related costs, all of which are expected to result in cash expenditures.

The Company’s Board of Directors (the "Board") committed to this course of action on September 29, 2016. The reduction in personnel was substantially completed on October 3, 2016 and is expected to be fully completed by December 3, 2016.
Item 3.01. Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.
On October 3, 2016, in connection with the appointment of Gary Crocker as interim President and Chief Executive Officer as described in more detail under Item 5.02 of this Form 8-K, Mr. Crocker resigned from the Audit Committee of the Board. As a result, the Audit Committee is currently comprised of only two members, James Quigley and Russell Ray. The Company expects the Board to appoint a new member of the Audit Committee promptly. In the meantime, the Company is relying upon the cure period under Nasdaq Listing Rule 5605(c)(4)(A) with respect to this vacancy on the Audit Committee and the related requirement under Nasdaq Listing Rule 5605(c)(2)(A) that the Audit Committee be comprised of at least three members. The Company provided a related notice to the Nasdaq Stock Market on October 3, 2016.

Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

(b) On October 3, 2016, Robert J. Mulroy, the President, Chief Executive Officer and a director of the Company, resigned from each of such positions.

(c) Effective October 3, 2016, the Board appointed Gary Crocker, the Company’s Chairman of the Board, as the interim President and Chief Executive Officer of the Company. Mr. Crocker, age 64, has served as a member of the Board since 2004 and as Chairman of the Board since 2005. Mr. Crocker has served as President and Managing Director of Crocker Ventures, LLC, a privately-held life science investment firm funding differentiated biotechnology and medical device companies, since 2002. Mr. Crocker has held senior executive positions or served on the board of directors of several life science companies, including as Chairman of the Board of ARUP Laboratories, co-founder and director of Theratech, Inc. (acquired by Actavis plc) and President, Chief Executive Officer and founder of Research Medical, Inc. (acquired by Baxter International). Mr. Crocker also served on the boards of directors of the publicly traded firms Interleuken Genetics, Inc. and The Med-Design Corporation. Mr. Crocker served as a member
of the board of the Federal Reserve Branch of San Francisco from 1999 to 2007, and currently serves as the Chairman of the University of Utah’s Center for Medical Innovation and on the board of the Sorenson Legacy Foundation. Mr. Crocker holds an M.B.A. from Harvard Business School and a B.S. from Harvard College.

Mr. Crocker is not receiving any additional compensation for his service as interim President and Chief Executive Officer of the Company. Mr. Crocker is compensated for his service on the Board pursuant to the existing terms of the Company’s director compensation policy.

(e) On October 3, 2016, the Company and Mr. Mulroy entered into a Separation and Release of Claims Agreement (the "Separation Agreement"). Pursuant to the Separation Agreement, in connection with Mr. Mulroy resigning as President, Chief Executive Officer and a director of the Company, the Company agreed to:

• commencing on the first regularly scheduled payroll date following December 2, 2016, continue paying Mr. Mulroy’s annual base salary of $598,689 for a period of twelve (12) months (the "Severance Period");

• continue paying the share of the premium for Mr. Mulroy’s health and dental insurance through the end of the Severance Period that it currently pays on behalf of active and similarly situated employees who receive the same type of coverage and/or to otherwise continue to provide to Mr. Mulroy during the Severance Period all Company employee benefit plans and arrangements available to the Company’s senior management employees; and

• on December 2, 2016, pay Mr. Mulroy a pro-rated bonus of $154,271.
The Separation Agreement also included a release of claims by Mr. Mulroy against the Company.

In addition, on October 3, 2016, the Company and Mr. Mulroy entered into a Consulting Agreement (the "Consulting
Agreement"), pursuant to which Mr. Mulroy will assist Mr. Crocker with the leadership transition of the Company, as directed by Mr. Crocker. Mr. Mulroy will be compensated at a rate of $300 per hour for his services under the Consulting Agreement. The term of the Consulting Agreement continues until October 2, 2019.

Either the Company or Mr. Mulroy may terminate the Consulting Agreement at any time, with or without cause. In the event the Company terminates the Consulting Agreement without cause (as defined therein), all unvested equity awards granted to Mr. Mulroy will immediately vest and remain exercisable in accordance with the applicable equity plans and award agreements.