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Friday, January 11, 2019

JP Morgan Day 3: Solid Biosciences


Solid Biosciences’ (SLDB) Co-Founder, President, and CEO Ilan Ganot gave an inspirational
presentation highlighting the commitment of the company to “solving” Duchenne’s Muscular
Dystrophy (DMD). With a personal stake in finding a therapy that brings benefit to patients,
having a son who was diagnosed with DMD, Ganot stressed the importance of the company’s 360
degree approach for DMD therapies including disease-modifying therapies – to address symptoms
in patients, corrective therapies – to address the genetic cause of DMD, assistive devices to
support mobility, all while improving the understanding of the disease.
The presentation was mainly focused on SGT-001, a micro-dystrophin gene therapy, Solid
Biosciences’ most advanced therapy for DMD, which is currently in a Phase I/II trial. Although no
new data was presented, the initial results on safety and micro-dystrophin expression are
expected later in Q1 2019 and an interim analysis of data from the study should be ready for a H2
2019 readout. Based on animal models, the company is expecting micro-dystrophin expression
levels of about 10% for the lower dose of SGT-001, but it also plans to initiate a dose ascending
study following an analysis of data from the IGNITE DMD phase I/II trial. Data on how microdystrophin translates into a functional benefit is yet to be generated however, Solid Biosciences is
hoping to achieve positive results from secondary endpoints in its IGNITE DMD study. Company
representatives in the Q&A session noted that a key differentiator of the transgene that they
developed is a unique domain that restores and localizes nNOS, which based on preclinical data,
they believe leads to increased functional strength.
The issue of the Suspected Unexpected Serious Adverse Reaction in the first dosed patient in the
IGNITE trial was also addressed. Company representatives in the Q&A session said that although
unfortunate, the event helped the company gain important insights into platelet decreases in
patients on the gene therapy and aided in the management of further patients including enabling
early detection. They noted that it may be due to AAV9, rather than their particular product,
though they did not elaborate. The company did not comment on the frequency of platelet
decreases in patients or on whether patients beyond the first one needed eculizumab to correct
the defect. They said they did not disclose the latter because they want to have a good
understanding of whether it is required or not, and will disclose more information in an update in
Q1.
During the Q&A session when asked about the differentiating factors between SGT-001 and other
therapies the company’s representatives spoke of the inclusion of adolescents in the clinical
trials, a group typically omitted due to the advanced stage of disease, as well as of the superiority
of the preclinical results of the individual components of the therapy, as indicated above.
The presentation ended with a brief overview of the company’s pipeline and plans for further
development. This included an anti-LTBP4 disease-modifying therapy to address fibrosis in DMD
patients and a planned pipeline expansion with next generation screening for new vector
candidates.

JP Morgan Day 3: Sangamo


Sangamo (SGMO) CEO Sandy Macrae opened its presentation stating that over the next year it
will become the leading genomic medicines company active in gene editing, gene and cell
therapy, and gene regulation. The firm chooses what to work on based on high unmet medical
need and matches its technology to certain areas of focus. The pipeline expands across the areas
of metabolic diseases, immunology, CNS, hematology, and cancer. Clinical readouts are expected
in 2019 and 2020 following enrollment progress of the last twelve months. During 2018 Sangamo
partnered with Pfizer and Kite and also acquired TxCell.
Sangamo currently has five programs in the clinic – SB-318 for MPS I, SB-913 for MPS II, SB-525
for hemophilia A, SB-FIX for hemophilia B, and ST-400 for beta-thalassemia. It anticipates moving
another four programs into clinical trials this year, the first being ST-400 for sickle cell disease by
partner Bioverativ. The company also made known that its Fabry candidate ST-920 and Tx200 for
solid organ transplant should move into human studies by year-end. Data from both MPS
programs will be revealed in February at the 2019 WORLD Symposium meeting. The SB-318
presentation is expected to describe preliminary safety and biochemical measurements at up to
four weeks from the first three adult patients enrolled in the EMPOWERS study, while the SB-913
presentation will include interim data on safety and biochemical measurements at up to 24
weeks from six adults enrolled in the three dose cohorts of the CHAMPIONS study.
Sangamo spoke about its gene editing platform that allows for targeted gene knock-out or
therapeutic gene insertion using zinc finger DNA-binding proteins. The ZFN technology can
recognize DNA with great specificity, precision, and efficiency. Through the TxCell acquisition
Sangamo gained CAR-Treg technology and plans to develop products with ZFN multiplex editing.
CAR-Tregs hold significant potential in the autoimmune disease space. Since Tregs are localized to
tissue you don’t need to know antigen causing the disease. Sangamo iterated that it’s excited
about the technology as no one has ever created a CAR-Treg.

JP Morgan Day 3: MorphoSys


At JPM, MorphoSys’ (MOR) presentation focused heavily on its most advanced proprietary
program MOR208, an Fc-enhanced anti-CD19 antibody. L-MIND is a pivotal Phase II trial
evaluating MOR208 combined with lenalidomide in relapsed/refractory DLBCL. Dr. Moroney,
MorphoSys’ CEO, explained that MOR208 attracts NK cells to the tumor while lenalidomide helps
activate them. Interim data from L-MIND has been impressive (33% CR rate and 16.2 months
median PFS) and final results are expected in Q2 2019. A rolling BLA submission is expected to be
complete by Q4 2019 and an approval is expected by mid-2020. A confirmatory Phase II/III trial,
B-MIND, comparing MOR208/bendamustine to rituximab/bendamustine is ongoing with top-line
results expected in late 2019 and primary completion in early 2020. With approximately 28,000
new DLBCL cases in the US every year, MorphoSys estimates that the initial addressable US
market for relapsed/refractory DLBCL is 8,500 patients/year.
Preclinical data has shown synergy between MOR208 and rituximab. A Phase Ib trial evaluating
MOR208 + R-CHOP vs MOR208 + lenalidomide + R-CHOP in treatment naïve DLBCL is expected to
initiate in Q3 2019. If the results are good, a pivotal Phase II/III trial could initiate in mid-2020.
MOR208 is also being developed for other indications.
An anti-CD38 antibody, MOR202, is no longer being developed for multiple myeloma in the US
but MorphoSys is suing Jannsen saying that Darzalex infringes on three of its patents and the trial
is expected to start in February 2019. I-Mab has received exclusive development and
commercialization rights in China, Taiwan, Hong Kong and Macao. MorphoSys received an
upfront payment of $20 million, up to $100 million in milestones and tiered double-digit royalties.
I-Mab plans to start a pivotal Chinese study of MOR202 in multiple myeloma in Q1 2019. Finally,
MorphoSys plans to develop MOR202 in the US for an autoimmune indication with a Phase II
study expected to initiate in Q3 2019.
MOR106, a first-in-class anti-IL-17C antibody was co-developed with Galapagos and was fully outlicensed to Novartis in July 2018 for EUR 95 million upfront, milestone payments of up to EUR 850
million and tiered royalties (low teens to low twenties). All payments are shared with Galapagos
50/50. MOR106 reported encouraging results in a placebo-controlled Phase I trial in atopic
dermatitis. Morphosys and Galapagos will complete by Q3 2019 (i) IGUANA, an ongoing Phase II
trial in ~240 patients with moderate to severe atopic dermatitis and (ii) a bridging study with a
subcutaneous formulation. Development of a subcutaneous formulation is essential for a viable
atopic dermatitis product. Morphosys and Galapagos have committed to initiating additional
trials in atopic dermatitis while Novartis has committed to carrying out Phase II studies in two
other indications as well as responsibility for all late Phase trials.
Tremfya, an anti-IL-23 antibody approved for psoriasis and licensed to Janssen, saw Q3 2018 sales
increase by 36% compared to Q2 2018. Royalty income for 2018 is now expected to be at the
upper end of guidance (EUR 12 to 17 million). Tremfya continues to be developed for additional
indications.
Group revenues for FY2018 are expected to reach EUR 68-72 million while expenses are expected
to be EUR 87-97 million for an EBIT loss of EUR 55 to 65 million. At the end of Q3 2018, the
company had EUR 481.2 million in cash and total ordinary shares issued as of December 31, 2018
was 31,839,572.
As MorphoSys continues to advance MOR208 to regulatory approval it is building US commercial
capabilities for an anticipated 2020 launch.

JP Morgan Day 3: Lee’s


Lee’s Pharmaceutical Holdings (0950.HK) presentation began with an overview of the Q3 2018
financial results, which had a finalised revenue of HK$299.2m. They noted revenue of HK$866.9m
for 9-months ended September 30, 2018, which is a 15.6% increase from 2017. Officials indicated
that they were investing heavily in R&D for future returns as of 9-months in 2018 R&D expenses
where at an all-time high of HK$95.8m, whilst the profit margin was held at 66.1%. The team
noted that they have 7 products in Phase III in multiple disease categories with large market sizes
including cardiovascular, oncology and ophthalmology. Lee officials then focused on
manufacturing sites where they confirmed that the construction for the biologics drug substance
and liposome production line had been completed at the Hefei manufacturing site. Additionally,
they addressed the manufacturing licence for the mono-dose line at Guangzhou that they
obtained in September 2018 and the cytotoxic capsules licence gained in October 2018.
Lee’s Pharmaceuticals then briefly described their prospects for 2019, which included the
enhancement of their sales team to maintain the strong sales growth momentum observed over
the past year. They also aim to increase their R&D expenditure and progressively isolate R&D
activities in oncology and ophthalmology from their core revenue stream. Pharmaceuticals
concluded with an explanation of the potential challenges in 2019 and how they plan to
overcome them. The China Health Commission aims to set up a national auxiliary drug list, which
they will closely monitor. Officials hinted that they are in a favourable position as their products
are not under the auxiliary drug category.

JP Morgan Day 3: CSL


The presentation began with Perreault acknowledging that CSL Limited (CSL:AU) is not as well
known since it is listed on the Australian stock exchange; nevertheless, he highlighted that it is
actually the fifth largest biotech company in the world. The company’s current primary focuses
are upon plasma supplies, immunoglobin therapies, and influenza vaccines- with plasma
therapies accounting for the majority of their ~$8 billion in revenues. CSL Limited is dedicated to
spending $1 billion in capital to build its capacity and holds a solid financial position. Supplying
plasma can be challenging and the company is devoted to addressing the steady, robust demand
for immunoglobulins by its opening of 30-35 new collection centres. CSL Limited is the parent
company of Seqirus, which is committed to the development of flu products. Perreault
emphasized that it is the only scaled flu cell culture manufacturer in the world and elucidated the
clinical benefits of FLUCELVAX- its cell culture quadrivalent vaccine- versus egg-based vaccines
and trivalent vaccines. Over 25 million doses of FLUCELVAX were produced in 2018 and the cell
culture approach is attractive compared to egg-based vaccines because it eliminates the need for
adaptation from egg to cell. Adding adjuvants to cell culture is CSL’s next step to enhancing its cell
culture vaccines.
In the past ten years, CSL Limited has performed consistently with a >11% compound annual
growth rate. CSL has achieved five major product launches (Idelvion, Afstyla, Haegarda, Privigen,
and Hizentra) in the past 24 months and Perreault singled out Idelvion for hemophilia B and
Haegarda for hereditary angioedema in particular as some of the most successful launches in the
industry as early market entrants. Idelvion’s annualized bleed rates were recapped during the
presentation and its advantageous fortnightly dosing schedule was touted compared to
competitors. It was mentioned that they are looking into further extending Idelvion’s convenient
dosing schedule to once every three weeks with a submission planned for the third quarter of
2019. In the coming year, CSL will be preparing to launch Haegarda in additional countries
amongst other product launches in new markets.
While immunology, neurology, haematology, and thrombosis platforms are presently core to
CSL’s assets, the company is moving into additional transplant, respiratory, and cardiovascular
and metabolic therapy areas. The serious complications associated with solid organ transplants
including antibody-mediated rejection and graft-versus-host disease associated with
hematopoietic stem cell transplantation, represent great opportunities. CSL’s strategy here is to
quickly bring products into Phase III development by curating products that have an existing realworld evidence base. On the respiratory front, a nebulized immunoglobulin therapy is being
developed to address the pulmonary exacerbation issues patients with primary
immunodeficiencies encounter that are potentially due to failure of the immunoglobulin to reach
the surface of the lung. Prevention of infections in primary immunodeficiency patients and
prevention of infection-related exacerbations in chronic obstructive pulmonary disease and
bronchiectasis patients may be viable indications for the nebulized immunoglobulin.
Furthermore, CSL112 is being investigated in the Phase III AEGIS II outcomes study in acute
coronary syndrome that is actively recruiting with over half of the countries on board so far. Data
are expected to be first reported in March 2020, with an update in October 2020, and interim
efficacy data to be released in April 2021. Following a year of follow-up, a BLA is planned for
submission in 2022 and the company will seek approval in the EU thereafter.

Kyowa Hakko Kirin signs AI drug R&D deal with InveniAI


Artificial intelligence and machine learning company InveniAI has joined with Kyowa Hakko Kirin to harness the power of technology for drug discovery.
The companies are the latest to use AI and machine learning to make the drug development process more effective.
In this case Kyowa Hakko Kirin will use InveniAi’s technology, dubbed AlphaMeld, to find new uses for drugs already in the pipeline at the Japanese pharma.
The companies hope this will maximise the value of the drug firm’s R&D, which is focused on oncology, nephrology, and immunology and allergy.
The Japanese pharma has a range of drugs in its pipeline, including cancer drug mogamulizumab, istradefylline for Parkinson’s disease and entinostat for breast cancer.
InveniAI will receive an upfront payment as well as development milestones and commercialisation payments. Financial details are not disclosed.
Mitsuo Satoh, head of Kyowa Hakko Kirin’s R&D division, said: “As we seek to fulfill our business vision to bring innovative treatments to patients faster, we very much expect that InveniAI’s platform will not only enable us to identify alternate therapeutic value for our portfolio at an unprecedented speed but also capitalize on our existing investment by reducing the time to market, clinical cost of development and enhancing the probability of clinical success.”
Last month, Novo Nordisk signed a deal with UK biotech e-Therapeutics to use its AI-based drug discovery technology to find new therapies for type 2 diabetes.
Germany’s Merck KGaA signed a licensing agreement with Canadian AI-based pharma R&D company Cyclica to use the technology to uncover new drug targets and predict side effects.
And Merck’s German rival Bayer is looking to improve patient safety data monitoring using AI, hoping to detect side effects much earlier.
The pharma company signed a multi-year contract with Genpact for the work, signing a multi-year agreement for its Pharmacovigilance Artificial Intelligence products.

Liquid biopsy-based system could prevent cancer from spreading


Angle’s liquid biopsy system has been used in new cancer research that could provide a novel way to treat breast cancer and other tumours, by stopping or suppressing their spread from the original site.
Research from the University of Basel, published in the journal Cell, showed the system dubbed Parsortix is able to harvest intact metastatic circulating tumour cell clusters (CTCs), which cause cancer to take hold in other parts of the body.
These are groups of cancer cells and other cells tethered together as a single mass, and could be used as a guide for further drugs that scientists believe would suppress the spread of the disease.
Patients identified as having CTCs could be treated with repurposed FDA approved drugs, which have been shown in mouse models to break up the clusters and suppress metastasis.
The research led by Professor Nicola Aceto at the university’s Cancer Metastasis Laboratory showed that animals treated in this way showed 80 times less metastasis compared with untreated animals, with the spread of disease virtually eliminated in the treated animals.
The development of metastasis, the spread of cancer to distant sites primarily via the blood, is responsible for more than 90% of all cancer-related deaths.
Previous work has shown that CTC clusters in the blood are highly metastatic causing greatly increased spread of the disease. If metastasis could be suppressed by disrupting CTC clusters then patient outcomes could be dramatically improved.
There are a variety of technical challenges to capturing intact CTC clusters from patient blood, which has historically led to problems with other CTC systems and an inability to effectively research CTC clusters.
In controlled tests with spiked samples, Basel demonstrated that the Parsortix system used with a specialised protocol overcame these technical challenges and was able to successfully isolate more than 99% of CTC clusters from a simple blood test.
After showing they are able to investigate CTC clusters using the system, and identifying previously unknown mutations in them that make them highly likely to spread cancer, the researchers searched through nearly 2,500 compounds already approved by the FDA that could cause the clusters to break.
They found a small number of drugs that could do this, and found that targeting the CTCs in this way caused them to lose their high metastatic potential.
The drugs used to target CTC clusters are not conventional chemotherapies with their unpleasant side effects, and also do not give rise to drug-resistant cell populations that can lead to disease relapse.
The drugs used for the CTC cluster dissociation are already approved by the FDA for different non-cancer indications and do not have the typical side effects of chemotherapy or immunotherapy.
Researchers from Basel have applied for ethics approval to begin a clinical trial in 2019 utilising the Parsortix system as a companion diagnostic to identify which patients have CTC clusters and may respond to the identified drugs. The first area of focus is in breast cancer, which complements Angle’s ongoing FDA studies in metastatic breast cancer.
Professor Aceto said: “CTC clusters are extraordinarily important mediators of breast cancer metastasis, and discovering the first anti-cluster therapy may provide a new powerful tool to help treat millions of women currently living with this potentially fatal disease.”