Drug Discovery

Pozen shares sink on latest Trexima delay

Thu, 02 Aug 2007 06:59:58 -0400

Pozen stock took a painful dive this morning after GlaxoSmithKline announced that their two-in-one migraine drug Trexima would be delayed yet again--this time to satisfy FDA demands for more information on evidence of genotoxicity seen in a preclinical study. That genotoxicity was seen in Trexima, but was not apparent when the two compounds used in Trexima were studied alone. That was bitter news for investors, who were hoping that the second approvable letter from the FDA--the first arrived more than a year ago--would be the charm. They drove down Pozen's value by close to half. Researchers say they'll shoot for an early meeting with the FDA to better determine how to proceed.

- check out the release
- here's the AP report on Pozen

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Anadys dumps hep B compound in restructuring

Thu, 02 Aug 2007 06:59:55 -0400

Anadys Pharmaceuticals in San Diego is also restructuring to account for a development failure. Out the door go 29 of 88 employees as it halts work on ANA975 for hepatitis B. Toxicology testing on ANA975, which was partnered with Novartis, delivered some discouraging news. CEO Lawrence Fritz says the remaining workers will concentrate their efforts on ANA598 for hepatitis C and ANA773 for cancer.

"With our cash balance of $69 million, we believe we have the resources to carry these two compounds forward to achieve meaningful clinical milestones," added Fritz.

- see this release from Anadys
- check out the San Diego Union-Tribune report

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Tobira garners $31M to advance HIV drugs

Thu, 02 Aug 2007 06:59:54 -0400

Up-start biotech Tobira Therapeutics, which is developing HIV/AIDS drugs, has raised $31 million in its first round of venture capital. Domain Associates and Frazier Healthcare Ventures led the round for Tobira, which also announced that James Sapirstein has been named CEO. Tobira is getting started on its development work with therapies licensed in from Japan's Takeda. Tobira announced that it has licensed in TAK-652 and TAK-220, CCR5 antagonists that can be administered orally and bind CCR5 receptors to interfere with the entry of the HIV-1 virus into macrophages and activated T-cells by inhibiting fusion between viral and cellular membranes.

- read the report from SoCalTech

ALSO: Princeton, NJ based Celator Pharmaceuticals has closed a $10 million follow-on round of financing from Domain Associates, Quaker BioVentures, TL Ventures, Ventures West Management, GrowthWorks Capital, the Business Development Bank of Canada and Hearthstone Investment. Release

J&J makes big cuts at Alza and Scios

Wed, 01 Aug 2007 06:59:58 -0400

Two Bay area biotechs, Alza and Scios, are in line for some big layoffs as Johnson & Johnson slims down its pharma operations. Acquired for $12 billion six years ago, J&J says that it is shutting down Alza's Mountain View facility and laying off 600 workers. J&J is largely ending the R&D efforts at Alza, which had been structured to tweak the pharma giant's therapies. The San Jose Mercury News also reported that Scios--which markets Natrecor--has already seen the pink slips fly and more cuts are expected. Two other J&J companies working in medical devices are also expected to undergo significant restructuring.

- read the report from the Wall Street Journal (sub. req.)

Related Articles:
J&J restructures pharma unit, laying off workers. Report
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SurModics paying up to $62M for Brookwood

Wed, 01 Aug 2007 06:59:57 -0400

The Southern Research Institute has sold Brookwood Pharmaceuticals to SurModics for $40 million up front and up to $22 million in milestones. Both SurModics and Brookwood specialize in drug delivery technologies. Brookwood was created two years ago and its 70 employees are expected to stay put in Birmingham, AL. "While we will miss having Brookwood as part of our extended organization, we are convinced that these two combined companies will be much more successful than they would apart," said Southern Research CEO Jack Secrist.

- check out the release
- here's the report from the Birmingham News

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Lilly developing biotech drugs the old-fashioned way

Tue, 31 Jul 2007 06:59:57 -0400

Pharma's biotech strategy is pretty clear: Buy companies or license in drugs and technology to get a leg up in the expanding market. But The Wall Street Journal notes that Eli Lilly has taken its own unusual approach--developing new biotech therapies from scratch. That's a slow approach, and one that is likely to take years to prove, or disprove, its utility. Half of Lilly's drugs entering the pipeline this year are biotech drugs, up from 10 percent in 2001. And by 2011, Lilly says it will introduce one new biotech drug each year.

- read The Wall Street Journal's article on Lilly (sub. req.)

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