Celgene to Acquire Avila Therapeutics

This acquisition is in our views a landmark deal and a strong validation of the emerging trend in covalent (irreversible) interaction between a small molecule and its putative pharmacological target. It is fair to say that in the past, a vast majority of pharmaceutical medicinal chemists have been reluctant to undertake the development of covalently-bound small chemical entities fearing lack of specificity and the associated long-term side effects (off-target effects). For years, compound libraries have been selected to remove covalent molecules and the covalent nature of the molecule/target interaction considered a red flag during the Hit to Lead phase.

Avila has mastered the structure activity relationship (SAR) work centered around covalent/reactive molecules and consequently allowed a new "class" of potent drug molecules to emerge. Applications of this new approach are broad across all major therapeutic areas.

We wish Celgene the best of success in exploring this approach in late-stage clinical trials as it may open new avenues across the medicinal chemistry world.

Bristol-Myers Squibb to Acquire Inhibitex

As we anticipated in our December review of the Gilead-Pharmasset deal (see Media Coverage at www.alliance4growth.com), the hunt for new anti-HCV drugs is on with this acquisition - In all fairness, we weren't the only ones to anticipate other bold, high premium deals in this area -

BMS pays a quarter of what Gilead had to "bid" to win the Pharmasset contest. This can be explained by the fact that the Pharmasset program has completed Phase II and initiated Phase III whereas the Inhibitex compound is at the late stage of a Phase 1b study and a more regulatory-friendly more potent isomer is yet to reach the clinic.

Two comments come to mind:

1- it's not over and we can speculate that the Achillion and Idenix business development groups and leaderships are fairly busy at this time. If I were to speculate further, I would not be surprised that a couple of Japanese companies are in the hunt.

2- once again, this hunt exemplifies the fact that the big pharmas are quicker at addressing threats than at seizing new opportunities - probably related to their internal decision process and who from marketing or R&D has a better shot at convincing leadership.

Biogen Idec and Isis Pharmaceuticals Announce Global Collaboration for Antisense Program Targeting Spinal Muscular Atrophy

Well, well, well…

Four in a row over the last month:

·         11/29/11: PTC-Roche licensing deal in Spinal Muscular Atrophy;

·         12/15/11: Shire-Atlas Venture alliance in rare diseases;

·         01/03/12: Enobia acquired by Alexion; and,

·         today:  Isis-Biogen Idec licensing deal in Spinal Muscular Atrophy 

Have orphan diseases ever attracted so much interest from Big Pharma and Venture Capital?