PolyTherics Ltd.

October 9, 2015 By Mark Terry , BioSpace.com Breaking News Staff Swiss-based Roche acquired San Francisco-based Adheron Therapeutics for up to $580 million today. Adheron focuses on technology that disrupts cell adhesion, which has potential applications for a variety of diseases. Its focus is Cadherin-11 (Cad-11), a surface protein found on fibroblasts in the skin and lungs, and fibroblast-like synoviocytes (FLS) found in the joints. Cad-11 helps cells stick together and, according to the company, “changes in Cad-11 interactions can induce the cells to produce proteins that influence the cellular environment positively or adversely.” Cad-11 appears to be involved in rheumatoid arthritis, as well as in several fibrotic diseases. The company’s lead product, SDP051, is a humanized monoclonal antibody. It has completed a Phase I clinical trial. As part of the deal, Adheron ’s shareholders will get a $105 million upfront payment in cash, and up to $475 million in potential milestone payments. SDP051 was humanized using Cambridge, England-based Abzena ’s Composite Human Antibody technology. The compound was one of 10 clinical-stage Composite Human Antibodies in Abzena’s portfolio. “The acquisition of Adheron by a major pharma company is great endorsement and validation of our Composite Human Antibody approach for creation of fully humanized therapeutic antibodies,” said John Burt , chief executive officer of Abzena in a statement. “This is also the third time we have seen the acquisition of a biotech company, pursuing products created through the application of our technology to improve their clinical profile.” Abzena provides services and technologies to research and development organizations. It has three wholly-owned subsidiaries that provide different types of services. They are PolyTherics , Antitrope and PacificGMP . “We are very excited about this acquisition, as it is an important step towards the development of breakthrough medicines in the area of inflammation and fibrosis,” said Hari Kumar , chief executive officer of Adheron in a statement . “This deal brings together Adheron’s deep understanding of the underlying science of Cadherin-11 with Roche ’s vast experience in researching and developing next generation medicines. We are proud to move our promising investigational medicine to the next level and into a new home at Roche .” This deal marks Roche strengthening its position in autoimmune and fibrotic diseases. In Aug. 2014, Roche acquired InterMune, Inc. for $8.3 billion. InterMune , located in Brisbane, Calif., focuses on developing therapies in pulmonology and fibrotic diseases. It’s lead drug, pirfenidone, is marketed as Esbriet in the U.S., Europe and Canada for idiopathic pulmonary fibrosis (IPF). The acquisition of Adheron is consistent with Roche ’s history of not making large buys, with the exception of its 2009 acquisition of Genentech for $46.9 billion. In 2014, it acquired Seragon Pharmaceuticals for $725 million, and about $250 million for Santaris Pharma . In a September interview with Reuters, Severin Schwann , chief executive officer of Roche , said he felt that biotechnology was in a “bubble,” that drove up the prices of medium-sized companies. “I think this bubble will burst at some point,” he said. He indicated the company had looked at a number of acquisitions, but concluded, “For us, none of them make sense and when I see this all the time, I am worried that valuations are too high. This whole segment is overvalued. The more time goes by, the more I am worried that this whole thing will collapse at some point and it will not be good for the industry if there is too much volatility.” Adheron was launched in 2006 and at that time called Synovex Corp. It was built on research by Michael Brenner and David Lee , researchers at Brigham and Women ’s and Harvard . Early funding was provided by Healthcare Ventures , Medimmune Ventures , SR One , Thousand Oaks, Calif.-based Amgen , and Brigham and Women’s .

Portfolio developments Good operational progress made by the Group’s leading assets. The top three portfolio companies made notable progress: Circassia, an allergy treatment developer, initiated international phase III trials for its cat allergy product, investigating 1,200 patients across North America and Europe. This followed a successful phase II review by the FDA. Nexeon, the battery materials and manufacturing business, signed a development agreement with a major consumer electronics and battery OEM and post period-end completed a strategic deal with WACKER Chemie AG to provide access to engineering expertise for the design and construction of a 250 tonne per annum plant. Veryan Medical, the medical devices business developing improved stent technologies, received a CE mark for its lead BioMIMICS 3D™ stent, enabling its sale in the EU. Clinical trials of the stent continue to yield positive data. The next five portfolio companies: PolyTherics, PsiOxus Therapeutics, Oxford Immunotec, Cortexica and Cell Medica also continued to develop well. Technology Transfer Office (TTO) activity saw 187 invention disclosures (142 from Imperial) (H1 2012: 165), nine commercial agreements signed (H1 2012: 7) and 19 patents filed (H1 2012: 16). Financial highlights £14.0 million invested in 15 portfolio companies during the period (H1 2012: £10.4 million in 14 portfolio companies), portfolio raised a total of £36.7 million (H1 2012: £24.6 million). Post period end invested a further £1.4 million in five companies, taking the total invested by the Group to £15.4 million with the portfolio raising £43.8 million so far this financial year. Cash and short term liquidity investments of £63 million at 31 January 2013 (H1 2012: £72.5 million). Net assets of £227.6 million (H1 2012: £225.0 million) and pre-tax profit £0.9 million (H1 2012: £0.9 million). Net fair value gains of £4.2 million (H1 2012: £2.9 million) and £3.5 million impairment of Thiakis contingent consideration. Martin Knight, Chairman of the Group, said: "Our portfolio companies are developing well, building long-term value as they progress towards commercialisation." "We have clear potential to grow major companies from several of our leading assets. The top three established assets, Circassia, Nexeon and Veryan Medical, which represent 52.8% of the value of the portfolio, made strong progress - providing validation of their commercialisation prospects." "Circassia’s pivotal phase III trial of its cat allergy treatment is a substantial step towards commercialisation, a great achievement for a private biotech company; Nexeon’s strategic partnership with WACKER will provide it with proven expertise in the manufacturing scale-up of its technology to commercial levels; and the CE mark gained by Veryan Medical is a strong endorsement of the quality of its product." "Our other significant investee companies, including PolyTherics, PsiOxus Therapeutics, Oxford Immunotec, Cortexica and Cell Medica, have also made substantial commercial and technical progress." "The portfolio has a satisfactory depth and spread of technological activity, which the Directors believe bodes well for a sustained and sizeable increase in the valuation of our investments." A pdf copy of the results is available at Enquiries: Imperial Innovations Group Plc 020 7594 6506 Martin Knight, Chairman Susan Searle, Chief Executive Officer Julian Smith, Chief Finance and Operations Officer College Hill 020 7457 2020 Adrian Duffield/Tim Watson/Rozi Morris J.P. Morgan Cazenove 020 7742 4000 Michael Wentworth Stanley/Paul Park Imperial Innovations Group Plc 020 7594 6506 Martin Knight, Chairman Susan Searle, Chief Executive Officer Julian Smith, Chief Finance and Operations Officer NEXT ARTICLE More From BioPortfolio on "Imperial Innovations Group plc Major growth potential in key portfolio companies" Related Companies Related Clinical Trials Related PubMed Entries Related Medications