Ottimo secures $140M to vie for novel cancer drug

David Epstein was poised to retire after selling Seagen, a significant player in cancer drug development, to Pfizer for $43 billion. His professional journey had already seen considerable accomplishments with notable organizations like Novartis and Flagship Pioneering. Epstein planned to gradually wind down his active involvement in the life sciences by offering guidance to emerging pharmaceutical companies through board positions. However, a call from Francesco de Rubertis, a partner at venture capital firm Medicxi, led to a change in his plans.

De Rubertis was in the process of establishing a company focused on developing a potential breakthrough cancer drug. He believed this new drug could challenge the dominance of existing immune-boosting treatments such as Merck & Co.'s Keytruda, which have significantly transformed cancer therapy over the past decade. Earlier this year, a comparable drug from Summit Therapeutics and Akeso demonstrated superiority over Keytruda in a Phase 3 trial. De Rubertis convinced Epstein that his venture held even greater promise.

Intrigued by the potential of the new drug, Epstein decided to postpone retirement and assume a leadership role. By late October, he became the chair and CEO of the nascent company, named Ottimo Pharma, which operates out of London and Boston. Epstein quickly assembled a talented executive team and gathered prominent investors to support the promising drug under development. The company announced a successful Series A funding round, raising $140 million from investors led by OrbiMed, Avoro Capital, and Samsara BioCapital.

Ottimo Pharma is venturing into a highly competitive field within oncology research. The company's innovative cancer drug aims to inhibit two critical cellular pathways, PD-1 and VEGF, which contribute to tumor growth and immune evasion. Although Ottimo is trailing behind biotechs like Summit and Akeso, as well as other companies advancing drug programs into clinical testing, it plans to seek regulatory approval for its first human trial by the end of next year.

Despite the competition, Epstein remains optimistic. He believes that drugs targeting both PD-1 and VEGF pathways will eventually surpass those targeting PD-1 alone, opening up a market valued at tens of billions of dollars. If successful, these new therapies could potentially broaden the market further by treating tumors unresponsive to existing immunotherapies or by extending the duration of treatments for patients.

Epstein asserts that Ottimo's drug stands out from its competitors. The company has engineered a bifunctional antibody, enabling both of its “arms” to engage with both targets simultaneously. In contrast, the antibody developed by Summit and Akeso has separate arms for each target. Additionally, Ottimo’s drug targets VEGF receptor 2, which is predominantly present around tumors, potentially allowing for higher dosing precision.

However, Ottimo faces significant challenges in proving the effectiveness of its drug. The company aims to commence clinical trials by late 2025 or early 2026. By then, Summit and Akeso might have sufficient data to pursue U.S. approval for their drug. Nonetheless, given the diverse range of cancer types and possible drug combinations, Epstein believes there is ample opportunity for new entrants in the market.

"This molecule is designed to be better," Epstein stated. "It’s our job to prove that." His confidence in Ottimo's innovative approach underscores his belief in the potential impact of their work on cancer treatment.