Epizyme builds epigenetics lineup with $90M Celgene score

Posted under Blog, Celgene, Companies, Diagnostics, epigenetics, Epizyme, Funding, M&A, Medical Devices, Medical Supply, Pharmaceuticals, Startups, Universities, Videos by john

Epizyme has scored its richest pact yet, raking in $90 million in an upfront fee and equity payment from Celgene ($CELG) in return for an option to partner on the technology while gaining ex-U.S. rights to one of its key programs for genetically defined cancers. The pact includes a commitment to pay tens of millions more in milestones for any successful therapies that come out of the deal.

The partnership gives Celgene dibs on histone methyltransferases (HMT) inhibitors for a period of three years, with an option to extend that by a year. At the heart of the deal is DOT1L, a preclinical program that could play a role in a subtype of acute leukemias called mixed lineage leukemia (MLL). Epizyme will get a shot at up to $160 million in milestones--as well as double-digit royalties--on each program that pushes through the clinic.

Epizyme, a 2011 Fierce 15 company, has been making a reputation for itself in the hot epigenetics arena. Its technology promises to find small molecules that will bind to and control specific enzymes, helping orchestrate activity of a range of genes and proteins. Early in 2011 Epizyme made a name for itself with back-to-back development pacts with GlaxoSmithKline ($GSK) and Eisai. And business development chief Jason Rhodes says this third commercial pact--Epizyme also has deals in place with two disease groups--was carefully tailored to provide the biotech with a fresh and substantial injection of cash while leaving it with U.S. rights and a joint governance approach to the partnership.

Epizyme's goal, says Rhodes, is to "build a new biopharma company and commercialize in the U.S. ourselves." And this new deal was designed to further those goals, bringing its total funds raised so far to $189 million, most of it in cash waiting to fund multiple programs. The new money will help finance the biotech's continuing growth. Rhodes says the fulltime staff has reached the mid-40s range, with around 90 contributing support work in facilities around the globe as part of its semi-virtual approach to development.

There's still no specific timeline available on when Epizyme plans to get its first program into the clinic. But they've set up one of the best collections of preclinical deals in the business. 

- here's the press release

Special Report: Epizyme - 2011 Fierce 15

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Constellation inks $95M discovery deal, buyout option with Genentech

Posted under Blog, Companies, Constellation Pharma, Diagnostics, epigenetics, Epizyme, Funding, Genentech, Medical Devices, Medical Supply, Pharmaceuticals, Roche, Startups, Universities, Videos by John Carroll

Epigenetics is a new field in drug discovery. But one of the pioneers of the science has already struck a lucrative partnership pact with Roche's Genentech that could pave the way to a buyout. Constellation Pharmaceuticals--a 2008 Fierce 15 upstart originally operated by Third Rock's Mark Levin--said this morning that it has struck a deal to collaborate with Genentech on new epigenetic drug programs, earning $95 million in an upfront fee and committed research payments over a three-year period.

For now, Cambridge, MA-based Constellation will continue to stay in charge of its two lead in-house programs, able to earn "substantial" but undefined development and commercial milestones on any successful efforts it undertakes with Genentech. And Genentech now has the right to gobble up Constellation whole, including its two programs, if the company likes what it sees.

Constellation CEO Mark Goldsmith tells FierceBiotech that the developer plans to have its first lead program in the clinic by the end of this year, giving the company its own options in the event the new Genentech relationship doesn't end in marriage. Goldsmith is staying mum about a number of items in the deal, though, including how much Genentech would pay if it goes ahead with an acquisition. But it amounts to a potentially "highly attractive return" for the investors.

A big return would require the kind of cash reserves that Genentech can call on. Constellation brought its total venture haul to $70 million with last summer's B round, which came from Third Rock Ventures, The Column Group, Venrock Associates, SR One and Altitude Life Science Ventures. Well funded, it's been growing its staff rapidly over the past three years. Today's announcement also contributes to a strong early endorsement of its strategy to approach epigenetics from a more "holistic" standpoint, focusing on three different types of enzyme targets that play a role in switching genes on and off and earning a reputation for its expertise in chromatin biology along the way.

Constellation's science related to a variety of disease categories, but it has primarily concentrated on cancer. One of its lead programs is focused on EZH2, which is also a hot topic at cross-town rival Epizyme.

- here's the press release

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Fast-growing Forma grabs $815M cancer discovery deal with Boehringer

Posted under Blog, Boehringer Ingelheim, Cancer Drugs, Companies, Cubist Pharmaceuticals, Diagnostics, epigenetics, Forma Therapeutics, Funding, Genentech, Medical Devices, Medical Supply, Pharmaceuticals, small molecules, Startups, Universities, Videos by John Carroll

Forma Therapeutics has nabbed an $815 million deal--$65 million of that in an upfront payment and the rest in pre-commercial milestones--to direct its growing drug discovery engine to new small molecule cancer therapeutics for Boehringer Ingelheim.

The pact marks another coup for Forma, a 2011 Fierce 15 company which has built up an extensive R&D operation designed to serve up new programs to a hungry set of biopharma companies around the globe. In this case, Forma plans to focus on multiple oncology targets over a four-year period. And they've set out to crack some tough cancer cases.

Since getting set up, CEO Steve Tregay tells FierceBiotech, Forma has been building up its skills in tumor metabolism, protein-protein interactions and, more recently, epigenetics, allowing the R&D side of the business to approach a single target along multiple pathways. Forma has about 100 staffers now--a big group by biotech standards--and the company just completed a move into 45,000 square feet of space in Watertown.

For Tregay, who once worked deals for Novartis ($NVS), this new pact also marks the evolution of the company into more drug discovery work as it develops its own pipeline. "We'll screen over 30 targets this year," he notes, and the company is gaining a reputation for fast, efficient work with a range of pharma outfits that includes industry leaders like Genentech and Cubist.

The Genentech deal included some unusual terms, including a new approach to paying out the returns Forma gets from its partner to its investors. And Tregay says that this new deal also has some flexibility built into it in terms of how it can use the money.

- here's the press release

Special Report: Forma Therapeutics - 2011 Fierce 15

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