Author: Luke Timmerman

  • Life Tech Buys Majority of Geneart

    Luke Timmerman wrote:

    Life Technologies,  the Carlsbad, CA-based company that makes instruments and lab supplies for biologists, said today it has acquired a 74 percent ownership stake in Germany-based Geneart through a tender offer to the smaller company’s shareholders. Geneart is one of five small companies around the world  that specialize in synthesizing custom-ordered genes for use in biomedical research. Life Technologies (NASDAQ: LIFE) bought 59 percent of the company on April 9 for 11.59 euros a share, and other shareholders tendered shares at 13.75 euros. Life Technologies said it plans to enhance Geneart’s distribution capability and commercial network in the U.S.

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  • YongoPal Wins UW Biz Competition

    Luke Timmerman wrote:

    YongoPal, a Web startup that enables English conversations between people Korea and the U.S., won the grand prize of $25,000 at tonight’s University of Washington Business Plan Competition. Empowering Engineering Technologies, a company that seeks to help disabled people to walk again, won the $10,000 second place award, while Emergent Detection and Febris each won $5,000 prizes. I wrote about the last two companies last month, during an earlier round of the competition, when I served as a judge.

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  • SonoSite Acquires Visualsonics

    Luke Timmerman wrote:

    SonoSite (NASDAQ: SONO), the Bothell, WA-based maker of portable ultrasound machines, said today it has agreed to acquire Toronto-based Visualsonics for $71 million, net of cash and debt. Visualsonics is the leader in ultra high frequency micro-ultrasound that uses five times the frequency center range of conventional technologies, SonoSite says. This has enabled biologists to visualize superficial anatomy on small living animals with microscopic detail, discerning features as small as 40 microns, according to a SonoSite statement. The ultrasound market for preclinical research is estimated to be worth $350 million with projected double digit annual growth rates, SonoSite said.







  • Craig Venter’s Enabler, Seattle’s Blue Heron, Grows With Synthetic Genes Made to Order

    blueheron
    Luke Timmerman wrote:

    When genomics pioneer J. Craig Venter stepped before the cameras last week and claimed that he engineered the first bacterial cell with an entirely synthetic genome, he actually had a lot of help. One of the key players he relied on behind the scenes was a privately held company in Bothell, WA, called Blue Heron Biotechnology.

    Venter’s team in San Diego and Maryland went through an elaborate process to “boot up” the bacterial cell by stitching together more than 1,000 stretches of DNA that were each more than 1,000 chemical base units in length. The sequences were designed on a computer, but Venter’s team hired the people at Blue Heron to take care of the next vital step—the job of synthesizing all that data into genes that gave rise to the famous bacterial cell. Blue Heron was singled out for a kudo in the J. Craig Venter Institute’s press release, and got a line in Nicholas Wade’s story in the New York Times. (Blue Heron even got a little publicity from hometown KOMO-TV.)

    Beneath the scientific implications and ethical debate, there’s actually an intriguing business story. For Blue Heron, it’s emblematic of its growing capabilities in the emerging field of synthetic biology, and the increasingly powerful things it can enable its customers to do. The company is one of five contract firms around the world that are ushering in an “industrialized” era of molecular biology. The idea is to take a time-consuming, costly process of synthesizing genes in the lab, and automate it into something much cheaper, faster, and more reliable.

    While the Seattle-area company doesn’t disclose its revenue, or say whether it is profitable, it currently provides its service to 19 of the world’s top 20 pharmaceutical companies and a growing cadre of academic researchers, says John Mulligan, Blue Heron’s founder and chief scientific officer. The company’s business is “sustainable” for the future with its current team of about 35 employees, he says.

    “Customers are saying ‘At this price, it doesn’t make sense to do any molecular biology internally anymore,’” Mulligan says. “Several companies have outsourced [DNA synthesis] completely.”

    The field has made dramatic strides over the past decade. Mulligan, who previously ran one of the sequencing centers at Stanford University that played a role in the Human Genome Project, left to start Blue Heron in 1999. He got some seed investment in the early days from Leroy Hood and David Galas, a couple of the co-founders of Darwin Molecular, a one-time highflier where Mulligan worked for a time in the mid-90s.

    Back in Blue Heron’s founding days, cost was the big barrier preventing the synthesis of DNA sequences in any systematic way. But the price per base pair, or chemical unit of DNA, plummeted about 90 percent over the company’s first nine years. That made it cheap enough for drug companies to order manufactured genes, rather than assign the task of making them to young scientists or skilled technicians in-house.

    And the trend has only continued. Two years ago, Blue Heron would synthesize genes for about $1.50 to $2 for each chemical base pair of DNA—now the same genes can be had for 40 cents to $1 per base pair, Mulligan says, depending on their complexity. Some researchers order short genes that are only 200 chemical units long, but Blue Heron can synthesize really complicated genes that can go as long as 200,000 units long, Mulligan says. If a customer wants to slip in a single letter variation here and there, an insertion of an extra letter or a deletion, Blue Heron has shown over time it can deliver the exact sequence the researcher wants, within one to three weeks of turnaround time.

    While falling per-unit prices sound bad for Blue Heron’s overall revenue, Mulligan says his company has been able to offset that decline a couple ways. One is …Next Page »

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  • Seattle Genetics Grows Up Fast, Valocor Seeks to Fight Acne, Cell Therapeutics Nabs $21M & More Seattle-Area Life Sciences News

    Luke Timmerman wrote:

    This week we had a few of the usual small deals to cover, but there were a few moments to take a deep breath and look at the big-picture trends underway in the Northwest biotech community.

    Seattle Genetics is practically invisible compared to the drama queen across Lake Washington, otherwise known as Dendreon. But while few may have noticed, Bothell, WA-based Seattle Genetics (NASDAQ: [[ticker:SGEN]) is working methodically to make sure it is ready to commercialize its own potentially groundbreaking cancer drug.

    —Once in a while, I dig into a tale from the nearby Vancouver, BC, biotech cluster, and this week’s story was about Valocor Therapeutics. This startup, a spinoff from QLT, is developing a light-activated, locally-delivered acne medication that it hopes will be safer than a widely used medication that has been linked to birth defects.

    —If you run a nonprofit with a mission to provide an amorphous benefit to society, like improving science education, how do you justify your existence in a data-driven world? The Northwest Association for Biomedical Research, as part of the 10th anniversary of its Student BioExpo, tracked down some of the living, breathing people it inspired in its early years who are now pursuing careers in science.

    —Who Needs VCs? Apparently Steven Quay, the former CEO of Sonus Pharmaceuticals and Nastech Pharmaceutical, doesn’t think he does. He’s started a new company, Atossa Genetics, that is seeking to pull off a $15 million IPO to commercialize a new tool for breast cancer screening.

    —In good times and in bad, Seattle-based Cell Therapeutics (NASDAQ: CTIC) never fails to raise more cash from investors. This time, the company raised $21 million from three institutional investors a little more than a month after the FDA rejected its only drug candidate with a chance of reaching the U.S. market anytime soon. This new cash will be used partly to pay off some of the debt that has been threatening to drive the company out of business.

    —There’s been a lot of buzz about the federal government’s new plan to spread $1 billion worth of tax credits and grants around the biotech industry, and Stewart Lyman took some time to bust a few popular myths about the program in a guest editorial.

    —The Fred Hutchinson Cancer Research Center has secured $10 million worth of federal stimulus grants to buy some more sophisticated equipment and establish a high-powered computing center on its Seattle campus.

    GenoLogics, the Victoria, BC-based maker of life sciences software, raised $1 million in equity out of a round that could be worth as much as $1.5 million.

    —Bellevue, WA-based RF Surgical, a medical device maker, raised $2.5 million out of a total financing round worth as much as $5 million, according to a regulatory filing.

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  • Mendlein Joins aTyr as Chairman

    Luke Timmerman wrote:

    aTyr Pharma, the San Diego-based developer of a new class of protein drugs, said yesterday that John Mendlein has joined the company as executive chairman of the board. Mendlein is currently the chairman of Fate Therapeutics and Alevium Pharmaceuticals. He was previously the CEO of Adnexus Therapeutics before that company was sold to Bristol-Myers Squibb for more than $400 million. aTyr Pharma was co-founded by Paul Schimmel, the prolific biotech entrepreneur, and a scientist at The Scripps Research Institute.

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  • Anadys Raises $12.5M, Hires Banker

    Luke Timmerman wrote:

    Anadys Pharmaceuticals (NASDAQ: ANDS), the San Diego-based developer of a treatment for hepatitis C, said today it has raised $12.5 million through a registered stock offering with certain institutional investors. The company has agreed to sell about 5.8 million shares at $2.15 apiece, about a 3.5 percent discount from yesterday’s closing stock price of $2.23. Lazard Capital Markets served as the lead placement agent in the offering. Separately, Anadys said today it has hired Lazard as a strategic adviser as it “pursues various avenues aimed at value recognition for its stockholders,” according to a statement. Anadys burned through about $5 million of its cash reserves in the first quarter, and was left with about $15 million left in the bank at the end of March.












  • Seattle Genetics, Growing Up in a Hurry With Millennium, Aims to Make Most of Cancer Drug

    sgen1
    Luke Timmerman wrote:

    Seattle Genetics has spent more than a decade thinking about cutting-edge biology, chemistry, and clinical trials to prove its drug candidates work. Then last week, for the first time in nine years I’ve been reporting on CEO Clay Siegall, he talked with passion about things like manufacturing, inventory, quality assurance, quality control, and insurance reimbursement.

    It all might sound awfully boring. But it’s a sure sign that Bothell, WA-based Seattle Genetics (NASDAQ: SGEN), with help from its partner Millennium: The Takeda Oncology Company, is learning fast what it takes to be a mature, commercial biotech company. And while it may be a slow news period for Seattle Genetics (NASDAQ: SGEN), it has to grow up in a hurry, because it is only a few months away from finding out if it has really struck gold with a new therapy for Hodgkin’s disease and related lymphomas.

    The big story at Seattle Genetics and Millennium centers on brentuximab vedotin, an “empowered antibody” that specifically seeks out cancer cells and unleashes a potent toxin on them for extra tumor-killing punch. This concept has not lived up to its hype over the past 30 years, but by the second half of 2010, Seattle Genetics and Millennium will learn from a pivotal clinical trial of 100 patients how well this therapy really helps sick patients. If successful, the companies will be able to seek FDA approval in early 2011, and potentially get a faster-than-usual six-month review that the agency sometimes gives to drugs with lifesaving potential. Patients, employees, investors, and an entire field of research is counting on Seattle Genetics and Millennium to deliver the goods. So Siegall & Co. are quietly trying to lay the groundwork now to make sure they are truly ready to make sure this drug is a hit.

    Clay Siegall

    Clay Siegall

    “Our drug has a chance to be a very important drug for patients,” Siegall says.

    For those just getting up to speed on this story, here’s a quick refresher. Seattle Genetics, founded in 1998, had its breakout moment in June 2008 at the American Society of Clinical Oncology meeting. That’s when the company released preliminary results showing its experimental treatment was able to completely wipe out or partially shrink tumors for 12 of 38 patients, with mild to moderate fatigue, cough, and nausea as side effects. Results only got better when researchers enrolled a few more patients, and longer-term follow-up data arrived.

    A lot of things have fallen into place for Seattle Genetics as a business ever since that appearance at ASCO. It raced to the FDA in early 2009 with a proposal for a pivotal clinical trial, and won the agency’s blessing for the study design. The company got this trial up and running at 27 locations in North America and Europe, and completed enrollment six months ahead of schedule—a lightning pace in oncology, where it’s extremely difficult to enroll patients on time. The company raised more than $200 million from investors in 2009, during a dark period in the overall biotech financial market. In December, Millennium wrote a $60 million upfront check to Seattle Genetics to form a partnership, which left the smaller company with 100 percent of the commercial rights to the experimental drug in the North American market.

    Much of what has happened since then has been the sort of behind-the-scenes blocking and tackling that biotech companies need to do, and often fail to do, as they prepare to commercialize a new drug. Part of that effort is in hiring new types of people, with skills in things like …Next Page »







  • Valocor Therapeutics, a QLT Spinoff, Envisions Safe Anti-Acne Drug and More

    valocor
    Luke Timmerman wrote:

    One of Vancouver, BC’s big biotech success stories, QLT, was clobbered by Genentech a few years ago in the market for treating age-related macular degeneration, the leading cause of blindness among elderly people. But during its heyday, QLT spawned a few cool R&D projects, and now some of them are being packaged into a new spinoff, Valocor Therapeutics.

    Valocor emerged from stealth mode yesterday with a technology license from QLT for dermatology drug candidates, plus an undisclosed amount of seed financing from the Working Opportunity Fund managed by GrowthWorks Capital. Valocor is led by a quartet of founders, including Julia Levy, one of the driving forces behind QLT’s light-activated verteporfin (Visudyne), a drug for macular degeneration.

    The idea at Valocor is to take some of what QLT learned about light-activated drugs, and apply it to the skin. The lead program will explore whether the company can develop a light-activated lotion that destroys the glands that produce excess skin oil that clogs up pores and causes acne. If this technique can clear up pimples, without damaging the underlying skin tissue, Valocor expects it could tap into a huge potential market that’s currently underserved. Roche’s isotretinoin (Accutane) is an effective oral pill for severe acne, but has long been controversial because of its link to birth defects. If Valocor’s treatment can offer a similar effect in a safer product, it could have a viable new option for 5 million people in the U.S. who seek medical treatment for acne each year.

    “There’s a huge need because of the lack of innovation in dermatology,” says Valocor CEO Dan Wattier. “Big Pharma basically walked away from dermatology 25 years ago. And these are big markets.”

    Dan Wattier

    Dan Wattier

    The story of how Valocor set sight on those markets can be traced back about five years. QLT was riding high then on sales of Visudyne, and was looking for new applications of light-activated drugs that could be effective in localized organs, like for urology or dermatology. Then in July 2006, Genentech won FDA approval for a new treatment, ranibizumab (Lucentis), that blew away eye disease specialists and made the QLT product look obsolete. Predictably, QLT’s sales and market share plummeted, forcing it to unload some of its R&D projects and secondary products, Wattier says. (If you want to see QLT’s pain, check out these annual financial trends.)

    One of those projects that got shelved during the cost-cutting effort was a drug called lemuteporfin. There were reasons to put it on the back burner. It had failed to show an advantage over placebo in a trial of patients with enlarged prostate.

    But the R&D guys saw another use for it, as a light-activated acne treatment. And it made some sense from a marketing standpoint. Acne is currently treated with over-the-counter lotions for a lot of people. Dermatologists often use ultraviolet light to zap the microscopic sebaceous glands that produce too much skin oil. Sometimes they prescribe oral antibiotics to kill bacteria that congregate around the hair follicles and clogged-up pores, Wattier says. But both of those treatments are only temporary, and in the case of antibiotics, over-use can lead to bacterial resistance. Roche’s Accutane, as mentioned above, can be extremely effective, but risky.

    Here’s how Valocor plans to tackle this problem. The company has developed an alcohol-based lotion that gets prepared at the doctor’s office. It’s inactive until it comes into contact with a certain wavelength of light, Wattier says. The drug gets absorbed just a couple of millimeters into the skin, where the sebaceous glands are, and the light is focused there, but not deep enough to go below the epidermal layers or into the bloodstream, Wattier says. The goal is to essentially destroy the sebaceous glands, stopping them from secreting excess oils. Since this drug doesn’t go into the blood like Accutane, it shouldn’t …Next Page »

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  • Vertex Hepatitis C Drug Passes Pivotal Test, Cures Three Out of Every Four Patients

    vertex2
    Luke Timmerman wrote:

    Vertex Pharmaceuticals has finally got the definitive proof it needs to say it has made a breakthrough for hepatitis C patients. The Cambridge, MA-based biotech company said today that its experimental drug for the chronic liver damaging disease was able to cure three-fourths of patients in the last stage of clinical testing required for FDA approval.

    Vertex’s telaprevir compound, when given in combination with two standard drugs, was able to eradicate any detectable sign of the hepatitis C virus in the blood for 75 percent of patients a full 24 weeks after they completed their course of therapy, Vertex said today in a statement. That is compared with 44 percent who did that well on a typical 48-week course of the usual drugs, pegylated interferon alpha and ribavirin. The results, which essentially represent the rate of clinical cures, were from a pivotal study of 1,095 patients known as “Advance.”

    This is the first time a company has shown in the final phase of clinical testing that a protease inhibitor, a type of enzyme blocker on the virus, which can almost double the cure rate for hepatitis C patients, while cutting the course of treatment in half for the standard drugs, which cause flu-like symptoms. An estimated 170 million people worldwide, and about 3 million people in the U.S. are infected with chronic hepatitis C, which damages the liver and can shorten lifespans. If Vertex can confirm these results in two more pivotal trials that are expected to yield results in coming months, Vertex could seek FDA approval later this year and bring telaprevir to the U.S. market in 2011. U.S. sales alone could amount to more than $2 billion after a couple years, analysts say.

    “These first Phase 3 results are important for people with hepatitis C, as they represent a potential new era of therapy where doctors may be able to use direct acting antiviral medicines to improve treatment and help patients potentially avoid life-threatening liver-related consequences,” said Ira Jacobson, the chief of gastroenterology and hepatology, at Weill-Cornell Medical College, in a Vertex statement.

    Shares of Vertex (NASDAQ: VRTX) climbed 11 percent to $38 in after-hours trading today following the announcement.

    The data to support telaprevir shouldn’t come as a surprise given what the company has seen in its previous studies. This Advance trial enrolled patients who have chronic hepatitis C infections, but have never before been treated. That’s because many people consider the standard therapy—pegylated interferon alpha and ribavirin—as worse than the disease because of the flu-like symptoms they must endure for almost a year.

    Doctors wanted to see in this study whether adding telaprevir, as a pill taken three times a day, would be able to provide enough benefit to outweigh the side effects. Patients were randomly …Next Page »












  • Hutch Nabs $10M Computing Grant

    Luke Timmerman wrote:

    The Fred Hutchinson Cancer Research Center said today it has received two grants worth a total of $10.1 million to set up a high-performance computing cluster and center to safeguard research data. The money comes from the American Recovery and Reinvestment Act, aka “the stimulus,” via the National Institutes of Health. The plan is to create an energy efficient facility that will safely store “irreplaceable research data,” and to buy high-powered instruments, the center said in an e-mailed statement.







  • T2 Biosystems Nails Down $15M For Portable Diagnostic with the Punch of a Desktop

    t2logo
    Luke Timmerman wrote:

    T2 Biosystems has been quiet for a while, but it’s making some noise today. The Cambridge, MA-based developer of a portable diagnostic machine has raised $15 million to carry on its quest for a diagnostic tool that that can beat workhorse laboratory machines on versatility, speed, and price.

    Physic Ventures led the round, which included new investors Arcus Ventures, RA Capital, Camros Capital, WS Investments. The round also included T2’s existing backers, Flagship Ventures, Polaris Venture Partners, Flybridge Capital Partners, and Partners Healthcare. The company has now raised about $31 million total since it was founded in 2006. As we’ve pointed out before, there is plenty of intellectual capital lined up behind T2. The company’s advisors include Tyler Jacks, the director of MIT’s Center for Cancer Research; Ralph Weissleder, head of Mass General Hospital’s Center for Molecular Imaging Research; and MIT’s indefatigable bioengineering professor, Robert Langer.

    T2 is what Harvard Business School professor Clay Christensen would call a “disruptive” technology, not the kind of more incremental, sustaining kind of innovations that big companies often pursue. This startup is attempting to commercialize technology will identify a huge range of biological substances—proteins, small molecules, viruses, DNA—in a handheld instrument. It aims to do all of this in a machine that costs less than $50,000, a tool that eliminates time-consuming and sometimes costly sample preparation steps, and that can give an answer in the lab, or the back of an ambulance or a jeep, in less than an hour. This technology, if proven in further trials, seeks to be better, faster, and cheaper than the classic optical-based diagnostic machines sold by giants like Becton Dickinson and Abbott Laboratories.

    “No one else can do DNA and protein in a single instrument, and no one can get results faster than us,” says T2 Biosystems CEO John McDonough.

    The difference with this mini-lab tool is so big, McDonough says, that it can change the way scientists, first-responders, and physicians find out exactly what they are dealing with. “The user can now see the problem and act on it. If you have to send in a sample to a central lab and it takes three days to get a test back, a lot of times you won’t even go through with the test.”

    What T2 is up against is an existing paradigm of optical detection machines that are big, powerful, and cost about $250,000, McDonough says. They typically require …Next Page »

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  • Student BioExpo Shows Its Payout: Three Young Scientists Pursuing Their Dreams

    studentbioexpo
    Luke Timmerman wrote:

    Businesses have financial data to show how they are performing. Research centers can point to how their discoveries are cited by peers. But nonprofits seeking to benefit society? Hard data and accountability that goes with it can be elusive.

    That’s why what happened yesterday at the Meydenbauer Center in Bellevue was so impressive. The Northwest Association for Biomedical Research (NWABR), the Seattle-based nonprofit that seeks to improve science education, showed some truly meaningful results today that didn’t come in the form of a chart on a PowerPoint. Instead, the group gathered three young people who were inspired by its mentorship program in the past, put them up on stage as the poised young adults they have become, and asked them to tell their stories.

    I’m sure that a lot of people would cynically write this off as a well-intended but fruitless endeavor. After all, something like 46 percent of Americans reject evolution and think the Earth is less than 10,000 years old, according to Chris Mooney and Sheril Kirshenbaum in their recent book, “Unscientific America.” Aren’t kids in China, India, and pretty much everywhere else around the world absolutely clobbering Americans in just about every measurement of science and math educational achievement?

    NWABR’s executive director Susan Adler had a quiet but powerful counter-story. This effort was founded in 1999 around a conference room table at Immunex, now Amgen, the world’s largest biotech company. The people there then, and those still there today, haven’t wavered in their belief that they have to give back to young people to invest in the future of science.

    “We here in the Northwest invest in our leaders, and they often return to us,” Adler said.

    And there they were in the flesh, three bright young Northwest natives, telling KPLU science reporter Keith Seinfeld about how their teachers, and volunteer researchers the expo matches them with, inspired them to pursue their current career paths.

    They kept their stories short and to the point. One of the alumni, Jessica McHugh, was urged by her teacher at the time to join the inaugural Student BioExpo in 2001 while she was a student at Eastside Catholic High School. McHugh’s project looked into the damage tobacco products can do at the molecular level in yeast. She went on to get a medical degree from Boston University School of Medicine. Now she has returned home as a family practice physician at Swedish Medical Center’s Cherry Hill campus.

    “I was fortunate to be in a high school where science was really appreciated,” McHugh said today. Joining the Expo showed her that this wasn’t just some nerdy, isolated pursuit. “It was an eye-opening experience to meet other like-minded people. It was a great opportunity to interact with other students,” she said.

    Andrew Kennard came at the Expo from a different angle. Until he was a sophomore at Garfield High School in Seattle, he never really had much interest in science. He thought he’d be an architect, maybe a writer. The Expo, from its very beginning, has always sought out kids like this and allowed them to pursue scientific ideas through more than just the wet lab, but other things like writing essays, sculptures, song and dance. Kennard chose to write an essay about the pros and cons of current epilepsy medications, since the neurological condition affected one of his aunts. He interviewed a researcher at Seattle-based ZymoGenetics, and was matched up with a mentor from Amgen who helped him think about the vast biological challenge of developing drugs for a disease like epilepsy, when scientists still know so little about what’s fundamentally causing it.

    “How can you write about something like that in 10 pages?” Kennard said. “I hadn’t done it? before. And I really felt fulfilled afterward. It was a feeling I hadn’t had before in school. It stuck with me after the Expo. In science, you can tackle big problems you don’t know how to solve, and there’s a lot of room to make a difference.”

    Kennard, who just finished up his freshman year final exams at Harvard University, hasn’t decided on a major yet, but he’s thinking about a career in biomedical research.

    The light bulb for science turned on in Camille Charlier when she won an award at the 2005 Student BioExpo for songwriting. Charlier, then a student at Shorecrest High School in Shoreline, WA, was personally motivated to learn more about psoriasis, a skin disease that she lives with. So she studied up on what researchers think might be going awry on Chromosome 17 that leads the immune system to go awry and start attacking otherwise healthy skin cells like they are a foreign pathogen. Importantly, she discovered through the expo that science is a creative process, not just about rote fact memorization. It was the kind of field that would bring out the best in her creative impulses, not something that would stifle them.

    So she combined what she learned about psoriasis into a new composition of music, as a way of better communicating to people what this mysterious disease is about.

    “I thought science was 100 percent rational and objective. But science contains an aspect of creativity,” Charlier said.

    After explaining how this experience helped launch her on her journey to Portland’s Reed College, where she’s a senior in biology, Charlier had the guts to take the microphone and sing her award-winning song from 2005 about “sinister psoriasis.”

    It’s anybody’s guess how many of the kids passing through the program this year will end up following paths like McHugh, Kennard, and Charlier. Expo co-founder Jeanne Chowning made clear that organizers will be happy if quite a few of the 2,500 students who have passed through this program over the past decade will simply become scientifically literate adults. But just by exposing so many kids to scientific experience of mentors, giving them opportunities to learn, and helping them build relationships, some surprising things can come out the other end.

    Like Charlier’s performance. Adler was beaming when it was her turn to take back the mike. “She really sounds just as wonderful as she did then, five years later,” Adler said.

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  • Cell Therapeutics Adds $21M

    Luke Timmerman wrote:

    Cell Therapeutics (NASDAQ: CTIC), the Seattle-based developer of cancer drugs, said today it has raised $21 million through an offering of preferred stock to three institutional investors. The company’s lead drug candidate, pixantrone for non-Hodgkin’s lymphoma, was rejected by the FDA last month. Cell Therapeutics said it plans to use the new financing to pay down some of its debt, finance R&D, prepare new drug applications, and for other corporate purposes.

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  • NormOxys Pockets $17.5M for Drugs Against Heart Failure, Cancer

    norm
    Luke Timmerman wrote:

    NormOxys, the Wellesley, MA-based company on a quest to make a new class of drugs that normalize oxygen levels in deprived tissues, has raised $17.5 million in venture capital to run its first set of tests in people with chronic heart failure and cancer.

    The financing was led by a new investor, Princeton, NJ-based Care Capital, and included the company’s original backer, Switzerland-based Index Ventures. NormOxys, founded in 2004, has now raised about $30 million since its founding.

    NormOxys, which we profiled when it emerged from stealth mode in December, is certainly pursuing a novel idea. The company’s lead drug candidate is a small-molecule compound that it says can induce tiny oxygen-carrying red blood cells to release a controlled amount of their oxygen payload into tissues that desperately need more oxygen. NormOxys is thinking specifically about heart muscles laboring under the stress of congestive heart failure, unable to pump enough blood to provide the energy people need. This is a tricky thing to do, because delivering too much oxygen too fast can be a bad thing. Other companies have tested drugs that increase the production of red blood cells, or the amount of hemoglobin that carries oxygen, but have led to serious side effects, including heart attack and death.

    But if NormOxys can show in a couple early studies over the next year that its controlled release of oxygen works in people like it has in animals, the company could tap into a potentially very big market. An estimated 5 million people in the U.S. suffer from chronic heart failure, a condition that causes severe fatigue and death. NormOxys could offer an alternative therapy to the standard beta-blockers and ACE inhibitors that have a more limited effect in boosting exercise capacity, at least compared to what NormOxys says it has seen in animals so far.

    “We can get to proof of concept relatively quickly, and it will have a large impact on our value,” says CEO Martin Tolar. The prize, once the concept is proven, will be a partnership with a big drugmaker or an acquisition, Tolar says.

    The NormOxys method is based on biology research from Claude Nicolau, a visiting professor at Tufts University in Medford, MA, and chemistry research from Jean-Marie Lehn, a Nobel laureate at the College de France in Paris. Their approach is to create drugs that work as “oxyrens,” which interact with hemoglobin in a way that allows that protein to release much more than the usual one-fourth of oxygen it binds with. The lead drug candidate is called OXY111A.

    Today, NormOxys is also announcing that it has started the first clinical trial …Next Page »

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  • Who Needs VCs? Steven Quay’s Atossa Genetics Seeks Fast IPO For Breast Cancer Test

    atossa1
    Luke Timmerman wrote:

    Most biotech firms toil as obscure private companies for years to prove their ideas work in the clinic. They have to hustle non-stop for venture capital to keep the doors open just long enough to someday cash out with an IPO.

    Steven Quay is betting he’s found a shortcut.

    Quay, the veteran Seattle biotech CEO, is trying to cut straight to the IPO chase with his new gig. He’s the CEO and founder of Seattle-based Atossa Genetics, with his own patented invention and his own seed capital, which he’s now hoping to parlay into a $15 million initial public offering. If Quay can raise that money, Atossa will be able to start selling an FDA-approved diagnostic test which could be used along with mammograms to predict a woman’s future risk of getting breast cancer.

    Atossa described its unusual origins in a March 30 investor prospectus that I, and pretty much everybody else in the media that I can see, missed. But Atossa’s IPO paperwork is clear that it is seeking to sell 5 million shares at $3 each. The filing doesn’t list any underwriters, although Quay says he is in discussions with several. It has a law firm (Cassidy & Associates of Newport Beach, CA) that I haven’t heard of, and an accounting firm, KCCW Accountancy, that also doesn’t ring any bells. Atossa plans to trade as an over-the-counter stock, which I must say isn’t the place most people look to find the next Genentech.

    That said, Quay is a well-known character in the Seattle biotech scene and on the NASDAQ circuit. He was previously the CEO of Bothell, WA-based Sonus Pharmaceuticals in the 1990s, and was CEO of Bothell, WA-based Nastech Pharmaceutical (now MDRNA) for most of the last decade. Both of those companies made a lot of shareholders unhappy. Sonus flamed out under Quay’s successor a couple years ago, and was later absorbed by OncoGenex Pharmaceuticals (NASDAQ: OGXI). MDRNA is still alive, but has limited cash reserves, and a market capitalization of less than $50 million. Quay left that company in the fall of 2008 with a severance package worth $1.7 million.

    Steven Quay

    Steven Quay

    The roots of Atossa Genetics go back to the late ’90s, during an interim stint Quay had between Sonus and Nastech. In 2000, Quay invented a technology which he says can be used to screen millions of women early for their future breast cancer risk, potentially saving lives, like the Pap Smear test has done for cervical cancer. Pap smears have helped bring the annual death rate from cervical cancer down by 90 percent over the past 50 years, and the same potential exists for early breast cancer screening today, Quay says. About 192,000 women in the U.S. are diagnosed with breast cancer every year, and about 40,000 die from it annually, according to the American Cancer Society.

    “While we have this conversation, women are dying every minute from breast cancer,” Quay says.

    The technology has had quite a few commercial twists and turns. Atossa’s test is designed to analyze nipple aspirate fluid, a sample of fluid from the milk ducts in the breast that’s filled with cells and molecular markers that are thought to be early signs of cancer. The technology was obtained by Nastech when Quay became CEO of the company in 2000. But it didn’t really go very far there. While at Nastech, Quay championed a strategy of creating nasal-spray delivery formulations of drugs which received support at various times from partners like Procter & Gamble, Novo Nordisk, and Merck. Those partnerships eventually dried up, and Nastech reinvented itself as a developer of RNA interference technology, and renamed itself MDRNA.

    While most investors weren’t watching, the breast cancer diagnostic won FDA approval in 2003. The commercial rights were later held by Cytyc and Hologic, who did some patent and development work, but handed the product back under license terms to MDRNA in 2008, Quay says. While it’s been cleared for sale by the FDA for seven years, the test hasn’t yet been marketed.

    Why didn’t those other companies commercialize the technology? One potential reason …Next Page »

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  • GenoLogics Raises $1M

    Luke Timmerman wrote:

    GenoLogics, the Victoria, BC-based developer of software for biologists and physicians, has raised another $1 million of equity financing out of a round that could be worth $1.5 million, according to a regulatory filing. GenoLogics previously raised $5 million in February 2009 from OVP Venture Partners, Yaletown Venture Partners, and GrowthWorks Capital. We profiled the company’s strategy, to better piece together genomic data with electronic health records, back in May 2009.

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  • Alder’s Long-Awaited Arthritis Data, Ikaria Plots $200M IPO, Emerald’s Resurrection, & More Seattle-Area Life Sciences News

    Luke Timmerman wrote:

    Get ready for a double-dose of your usual Seattle biotech roundup, as I was too slammed to give you the regular weekly shot of news last Thursday.

    —Six months after Bristol-Myers Squibb (NYSE: BMY) wrote a big check to Bothell, WA-based Alder Biopharmaceuticals, we can see why. Xconomy had the exclusive on how ALD518 generated “outstanding” results in a mid-stage trial of 124 patients with rheumatoid arthritis, in the words of the lead investigator. This story was based on an abstract posted online in advance of the European League Against Rheumatism conference next month in Barcelona.

    —Rheumatoid arthritis may be the really big market on the horizon, but Alder didn’t give away the whole store in the Bristol deal. Alder has retained the full rights to ALD518 for cancer, and the company is getting ready to present some other important mid-stage trial data next month at the American Society of Clinical Oncology conference. The idea is that ALD518 can tamp down the excess inflammation that plagues cancer patients, making them vigorous enough to withstand more chemotherapy that kills tumors, which might help them live longer.

    Leroy Hood coined the term “P4 Medicine” as the tagline for his vision of predictive, preventive, personalized, and participatory medicine about seven years ago. Now he has clinched the first partnership with a major U.S. medical school, Ohio State University, which is setting up a demonstration project to put this idea to the test. The deal is for two years, and calls for Ohio State and the Institute for Systems Biology to contribute $1 million each to make this work.

    —One intriguing Seattle connection jumped on my radar during my last trip to San Diego, when I met with Nobel Prize-winning chemist K. Barry Sharpless of The Scripps Research Institute. Sharpless is well known as a proponent of “click chemistry,” in which scientists seek out the simplest, easiest, most reliable, irreversible reactions possible for industrial processes, rather than just trying to do what’s most cool or exotic to impress their peers. This technology is at the heart of a prototype device that Lee Hood’s Seattle-based Integrated Diagnostics is using to gather reliable measurements from a pinprick of blood.

    Ikaria, the Clinton, NJ-based biotech company with an R&D operation in Seattle, is gearing up for a $200 million IPO to be underwritten by Goldman Sachs, Morgan Stanley, Credit Suisse and others. The company is profitable because of a drug that treats respiratory illness in infants, but its big swing for the fence is with technology licensed from Mark Roth’s lab at the Fred Hutchinson Cancer Research Center that seeks to induce a reversible hibernation-like state that could someday buy more time for doctors to treat traumatic injuries, or perform heart surgeries. Arch Venture Partners has a 10 percent stake in Ikaria, so Bob Nelsen is rooting for this to be a big win.

    —While all this news was breaking, we somehow found a way to organize an event on health IT innovation at the Frye Art Museum, with support from event host Swedish Medical Center and a number of sponsors. You can catch up on what happened by checking out this photo gallery, the speakers’ slides, and Greg’s roundup of some of the pithy insights we picked up.

    Seattle Biomedical Research Institute has been itching …Next Page »







  • Scripps Chemistry Idea “Clicks” With Big Pharma, Seattle’s Integrated Diagnostics

    scripps
    Luke Timmerman wrote:

    One of the Nobel Prize winners at The Scripps Research Institute in San Diego has been saying for a decade that chemists would be better off doing the simple thing instead of the hard thing. Now quite a few of the world’s top academic scientists and Big Pharma companies are starting to adopt K. Barry Sharpless‘ philosophy of “click chemistry.”

    This is the concept that Sharpless has been advocating a long time, along with a couple like-minded faculty members at Scripps, MG Finn and Valery Fokin. I met with Sharpless, Finn and Scripps’ tech transfer leader, Scott Forrest, a few weeks ago to talk about the boom they are seeing in scientific publications, patents, and some new technology licenses that are taking advantage of “click chemistry” principles.

    What’s the big idea? It’s about using small chemical building blocks that you put in water or some other solvent, until they naturally “click” together. Sort of like a plastic buckle on a backpack, these molecules join together in the easiest, cheapest, most reliable, and most durable reactions possible, according to the laws of Mother Nature. These are fundamental reactions that tightly bind molecules together and could be useful as oral pills, industrial adhesives, stable coatings for implantable medical devices, or any number of valuable products. It sounds simple, and Sharpless and Finn say it is. What’s surprising is how strange it might appear to the modern lab with its state-of-the-art tools and its efforts to constantly strive for the leading edge and peer approval that goes with it.

    Sharpless has been applying this idea for about 20 years, but he says he was really inspired by Kevin Kelly’s 1995 book “Out of Control.” Kelly, the founding editor of Wired, wrote that scientists should recognize they’re playing “God games.” In the case of a chemist, he or she is trying to do things that are more complicated any human can fully understand, so they should listen carefully to what Mother Nature says. It’s a more humble approach than what you often see in pharmaland.

    “We are going toward an unknown target. Even if we think we know the target, we say we know what’s best. That was big-scale hubris. It’s like Cinderella and her sisters, with a shoehorn. Our intellect is saying we can shoehorn what we say works into the shoe. It’s not close to the truth,” Sharpless says. “If you want to be God, you have to allow your objects to have free will. You have to relinquish control.”

    Barry Sharpless

    Barry Sharpless

    Instead of trying to do things the way nature wants, chemistry and other fields of science are really more of a game of “hey, can you top this?” to hear Finn and Sharpless describe it. The click philosophy, they say, strikes a lot of peers as mundane.

    “We are trained as most experts to do the hardest things and do them well. That’s how you get praise and learn,” Finn says. “You want to do the hardest chemical reactions and make them work. It’s weird to say ‘We’re not going to do the hardest reactions.’ We’re going to find or create the easiest reactions.’ But if you think about it, it’s a lot harder to invent a process that works all the time, than it is to make the process that’s really difficult work a few times.”

    Yet more and more scientists and companies are seeking to apply the click philosophy. One example is Seattle-based Integrated Diagnostics, a company co-founded by Leroy Hood of the Institute for Systems Biology and Caltech’s Jim Heath. Their idea is to create a diagnostic tool that can perform binding reactions cheaply and reliably enough to usher in an era in which physicians will be able to spot proteins that are early warning signs of cancer or neurodegenerative diseases in a pinprick of blood.

    Hood loves to tell the story about how the prototype, and the tight binding reactions it performs inside, were rugged enough to produce reliable results even when Heath left the machine in the truck of his car near Caltech in Pasadena, CA.

    That’s just one example. Carlsbad, CA-based Life Technologies (NASDAQ: LIFE) markets a kit that performs a click reaction to take quantitative measures of DNA in cells, Finn says. Tampa, FL-based Intezyne, whom Finn advises, is using the click principles to attach polymers to drug candidates in a cheap, strong, consistent way to make chemotherapies active only inside tumors, not other tissues where they cause side effects. Hundreds of drug candidates that use the principle are now working their way …Next Page »

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  • Leroy Hood’s Personalized Medicine Vision Enters Proving Ground at Ohio State

    isblogo3
    Luke Timmerman wrote:

    Seven years after biotech pioneer Leroy Hood coined the term “P4 Medicine,” for a transformative new idea in healthcare, he has captured the first significant money and manpower from a major U.S. medical school to carry the idea forward.

    Ohio State University, the nation’s second-largest university, said late Friday that its board has approved a partnership with Hood’s Institute for Systems Biology in Seattle. This is a two-year collaboration in which both organizations will put in $1 million each. Ohio State provides a group of 55,000 insured employees and family members who could enroll in clinical trials, plus a group of physicians motivated to be on the front line of personalized medicine. The Institute for Systems Biology will contribute cutting-edge analysis of genes and proteins from samples so the physicians can gather useful information to monitor patients and guide their wellness.

    The deal means that Hood’s idea for P4 Medicine—shorthand for predictive, preventive, personalized and participatory medicine—is now officially up and running. The vision is that instead of waiting for clinical symptoms to appear, like a tumor spotted on an X-ray after it’s too late, physicians will eventually be able to see early warning signs of malignancies from a pinprick of blood analyzed by genomic instruments and software. If the genes and proteins are truly predictive, then doctors could take early action, or people could adjust their lifestyles accordingly to prevent disease. This vision could transform the $2.5 trillion U.S. healthcare industry, which currently pours most of its resources into reacting to chronic and preventable conditions, with little upfront investment in wellness.

    “We’re near a tipping point, to use Gladwell’s term,” Hood says. “People realize things are changing, they need to change, and the old order isn’t going to solve the problems. A lot of people are willing to listen in ways they weren’t willing to listen before to new opportunities.”

    Leroy Hood

    Leroy Hood

    Much of the heavy lifting for this vision is falling to Frederick Lee, whom Hood brought in almost a year ago as the founding executive director of a new nonprofit entity called the P4 Medicine Institute. Lee, 40, has the sort of unusual background that’s probably required for someone to carry out a task this big and broad. He studied molecular biology as an undergrad at MIT, and has a medical degree and completed surgical residency at Stony Brook University Medical School. Lee also has a master’s in public health from Columbia University, where he specialized in the study of preventive medicine, and has executive experience at health giants like GE Healthcare and McKesson, where he tried to implement his ideas.

    Fred Lee

    Fred Lee

    So he’s young, ambitious, and as Hood says, “has a mutually congruent vision,” which is hard to find. Lee tried to implement some similar ideas back when in the corporate world, but he says “we spent a lot of time banging our heads against the wall.”

    “We can perform 21st century medicine now, but we’re trying to do it with 19th century infrastructure,” Lee says. “It’s what the P4 Medicine Institute has been created to solve.”

    This idea challenges so much conventional wisdom and institutional complacency that it has taken years for Hood to find the right partner. It requires multiple layers of an organization to fully buy into the vision—from CEO to physician to nurse. Then there are insurers. And there are privacy concerns whenever people start capturing huge amounts of genomic data on patients, which makes it hard to find people who will fully go along with the “participatory” element. Money to support the idea, of course, is always an issue.

    Even some fundamental technical problems still need …Next Page »

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