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Tuesday, July 2, 2019

Invacare cuts 75 jobs, names new sales roles

In a progress update on its transformation plan, Invacare (NYSE:IVC) says it’s cut 75 jobs and changed some leadership in its sales organization.
The company named Joost Beltman VP – Sales and Marketing, North America. Most recently, he served as managing director of the Benelux and Italy regions.
It’s also named Keith Brantly director of CRT sales; he’s rejoining the company from Amoena USA.
Meanwhile, it’s shed 75 associates in North America and Europe. The company expects pretax cash restructuring charges of about $0.6M in Q2 and $2.5M in Q3.
Once the workforce reduction is done, it expects $6.4M in annualized pretax savings: $3.3M in Europe, and the rest in North America.

Mizuho starts Merck at Buy


Karuna closes $103M IPO

Karuna Therapeutics (NASDAQ:KRTX) has closed its IPO of ~6.4M common shares at $16 per share, including the full exercise of underwriters’ over-allotment. Gross proceeds were ~$102.6M.

USANA Health Sciences cuts 2019 outlook

USANA Health Sciences (NYSE:USNAanticipates Q2 sales in the range between $253M – $256M, compared to $301M last year, and EPS of ~$0.91 – $0.95, compared with $1.36 in the prior-year period.
The company lowered its FY19 outlook, amid challenging consumer environment in China due to negative media coverage of the health products and direct selling industries
Forecasts sales of ~$1.02B – $1.06B as compared to prior guidance of $1.21B-$1.26B, with EPS of $3.70 – $4.10 down from prior guidance of $5-5.35
Q2 results will be released on July 23, 2019.

Arbutus sells portion of Onpattro royalties to Canadian pension plan

Arbutus Biopharma (NASDAQ:ABUS) has sold a part of its royalty interest in future global sales of Alnylam Pharmaceuticals’ ONPATTRO (patisiran), approved by the U.S. and Europe in August 2018 for polyneuropathy caused by hATTR, to an Ontario, Canada-based pension plan called OMERS.
Under the terms of the agreement, Arbutus will receive $20M gross, to be retained by OMERS until it has received a total of $30M in royalties.
Under the terms of its license with Alnylam, Arbutus will receive tiered royalties of 1.00 – 2.33% after offsets. The royalties that it will receive under its license deal with Acuitas Therapeutics are unaffected.

Bayer backs cell therapy startup with $215M in funding

  • Bayer is betting cell therapy’s future will be led by allogeneic, or “off-the-shelf,” treatments, backing biotech start-up Century Therapeutics with $215 million.
  • The financing, which was announced Monday, comes via the German pharma’s venture investment arm Leaps by Bayer. Versant Ventures, Century’s creator, and Fujifilm Cellular Dynamics will add another $35 million to bring Century’s funding to $250 million.
  • Century aims to develop therapies for blood cancers as well as solid tumors. Unlike other allogeneic companies, however, the newly minted biotech will use induced pluripotent stem cells, manufactured by Fujifilm.

First-generation cell therapies, such as those developed by Novartis and Gilead, rely on immune cells collected from each individual patient. A painstaking manufacturing process then yields the engineered CAR-T cells capable of seeking out and attacking cancer, which are then reinfused back into the patient.
That complex production is one reason driving investment and research into so-called allogeneic cell therapies.
Freed from the need to extract patient immune cells each time, such treatments could in theory be administered rapidly, rather than in the two to three weeks now typical for CAR-T therapies like Novartis’ Kymriah (tisagenlecleucel) and Gilead’s Yescarta (axicabtagene ciloleucel).
Allogene Therapeutics, for example, raised more than $300 million in an initial public offering last fall based on the promise of its allogeneic product pipeline. Led by the founders of Yescarta’s original developer, Kite Pharma, Allogene is seen as one of the leaders in “off-the-shelf” cell therapy.
Allogene uses T cells from screened healthy donors it then engineers to express chimeric antigen receptors, or CARs — a point of contrast with Century’s planned approach using induced pluripotent stem cells, or iPSCs.
Reprogrammed into an embryonic-like state, iPSCs can be developed into other cell types and propagate indefinitely. For Century, the cells will be expanded and differentiated into immune effector cells, the foundation for the biotech’s planned allogeneic programs.
Fujifilm’s backing gives Century an iPSC manufacturer from the start.
Others are exploring use of iPSCs in cancer cell therapy. Fate Therapeutics, for example, has a pipeline of iPSC-based immuno-oncology candidates.
For Bayer, the funding gives a window into early allogeneic research. While the pharma has invested more heavily in cancer, owning full rights to Loxo Oncology’s Viktrakvi, it hasn’t moved into the cancer cell therapy field.
It has, however, invested in iPSCs, having teamed up with Versant in 2016 to launch BlueRock Therapeutics with $225 million in funding. BlueRock, though, is exploring whether iPSCs could be used to develop treatments for cardiovascular and neurological disorders.
Bayer’s venture arm has also backed Casebia Therapeutics, a CRISPR-based gene editing biotech, and Jyon Bio, which is focused on agriculture.

Researchers Create “Embryoids” Using Stem Cells

Much of what happens as a human embryo develops is unknown. It’s been defined in animal models, but not in humans. Much of the reason for that is related to ethical limitations on what type of research can be conducted on human embryos. There is a ban, which is called the 14-day rule, on conducting experiments on real human embryos after 14 days of growth.
Researchers at Rockefeller University appear to have found a way to work around that ethical limitation, although it brings its own set of concerns with it.
The scientists, led by molecular biologist Ali Brivanlou, used human embryonic stem cells to develop living models of human embryos that could be studied in the laboratory. The three-dimensional model of a human epiblast had the size, cell orientation and gene expression roughly equivalent to a day 10 human epiblast.
“We came up with a model of human embryos that are developed outside of the womb and is not the product of the sperm and the eggs but is the product of human embryonic stem cells that self-organize into complicated structures,” Brivanlou told NPR.
The team took human embryonic stem cells and placed them into Petri dishes that contained a gel and added a protein. The cells organized into three-dimensional balls that were hollow inside but resemble early embryos.
“Our experimental model looks like a ball—a shell—of cells,” Mijo Simunovic, the study’s first author told NPR. “This is more or less what the embryonic tissue looks like at this stage.”
Perhaps more importantly, the cell ball then self-organized, breaking symmetry.
“This process of symmetry breaking is a major holy grail of development biology,” Brivanlou stated. “Life is a continuation of symmetry-breaking events.”
“Scientifically, this research is important,” George Daley, a leading stem-cell researcher and the dean of the Harvard Medical School, told NPR. “We really don’t have access to the earliest stages of development. And here we have this remarkable tool in a petri dish.”
From an ethics standpoint, the research is promising but does raise some questions. These synthetic embryos have shown the very first signs of developing what is called the primitive streak, which is the earliest indication of the embryo in a fertilized ovum in higher vertebrates. The primitive streak is much like the 14-day rule, in that it typically marks the end of embryonic experiments.
“As the embryo models become much more complete and much further along in showing us how the human body develops after fertilization, one might begin to wonder: At what point do these models effectively just become the real thing?” said Insoo Hyun, a bioethicist at the Case Western Reserve University and Harvard Medical School, who was not involved in the research, reports NPR.
Simunovic, however, is quick to point out that, “These are not actual human embryos. And they would never become human embryos if we let them grow.”
But the researchers are working on developing more sophisticated embryoids, which will undoubtedly continue to challenge medical ethics and experimental guidelines. The International Society for Stem Cell Research, for example, plans to revise its guidelines for this type of research as a result of this study.
“The research is unpredictable,” Hyun told NPR. “The cells are self-organizing in a way that sometimes surprises the researchers—they get a level of complexity that they did not expect. There are dangers lurking ahead.”
The research was published in the journal Nature Cell Biology.