Gemin X Pharmaceuticals

John Carroll — Mon, 07 Jul 2008 07:58:58 -0400

Pharma development chief takes on role of biotech entrepreneur

Over the past 20 years, Glenn Gormley, M.D., Ph.D., rose to a high altitude in the world of big pharma drug development. There were stints at AstraZeneca and Merck capped by a role as global head of clinical development and medical affairs for Novartis.

Now, though, he's made the leap from top executive at big pharma to biotech entrepreneur, taking the top job at Gemin X Pharmaceuticals just weeks before a third venture round reaped $38 million, bringing the company to more than $90 million in total money raised as it heads through the mid-stage point on its lead therapy.

"For a long time I have been interested in operating as CEO of a company and moving into a smaller organization where I could have an impact on setting the direction," Gormley tells FierceBiotech. And at 65 staffers, Gemin X in Malvern, PA - the company also has operations in Montreal -- fit the bill perfectly.

He liked the executive team and staffers he met early on. Gormley also appreciated the biotech's pipeline, with a lead compound in mid-stage trials and a second compound (GMX1777, in-licensed from Leo Pharma) "in late Phase I" which has shown anti-tumor activity. And there were good preclinical programs in place as well.

"The third characteristic was the potential of the company, its philosophy," says Gormley. "This is a company we want to grow; make it a leader. We want to deliver products to patients who need them, and our goal and strategy is to make obatoclax successful."

Obatoclax (GX15-070) is a small molecule now in a mid-stage trial to determine its usefulness as a single agent in combating acute myelogenous leukemia in the elderly.

When people hit their 70s and 80s, says Gormley, "AML is very difficult to treat. Obatoclax can fill that void and make a big difference."

Obatoclax, which was discovered at Gemin X, is intended to restore natural apoptosis. "Cancer cells often escape cell death by the over-expression of the Bcl-2 family of proteins," explains Gormley. "There are five. Obatoclax inhibits all of the known family of Bcl-2 proteins.

"We believe that can work as a standalone therapy."

A second indication is being pursued with obatoclax in a combination therapy for non-small cell lung cancer. And there's a third indication in mantle cell lymphoma, where patients have an approved product but resistance occurs in the expression of Mcl-1, "and obatoclax is quite potent at inhibiting Mcl-1. We're going to see if a combination therapy can prevent that resistance."

I think that's a pretty significant set of studies."

Caxton Advantage Life Sciences Fund and Caxton Global led the recent venture round, with Sanderling Ventures, H.I.G. Ventures, CDP/Vantage Point, ProQuest, Merlin BioMed Group, HBM Partners, Canadian Medical Discoveries Fund, Ontario Teachers' Pension Plan Board, SoftBank Life Science, Business Development Bank of Canada, Solidarity Fund QFL, and Pinnacle Bioventures all participating.

The money from the Series C "allows us to complete the programs we need to get to a point where we can see the efficacy of the drug." That would help set up new venture rounds -- if needed -- and raises the possibility of structuring a lucrative partnership.

"A strategic partnership with big pharma would be useful."

Just don't ask for a timeline.

Says Gormley: "We won't define how far that takes us out."

Like a lot of small biotech companies, Gemin X's ultimate fate will be determined not just by the data that's generated in clinical trials but by the state of the public market and the competing hunger for new mergers and acquisitions.

"I think growing as a public company is an option," says Gormley. "It will depend on the marketplace and we will need to assess the conditions of the marketplace." But for the executive team to be successful, says the newly minted entrepreneur, management would have to be able to present various options for investors.