Life Science Today

Life Science Today 058 – BGI Group, Genebass, Astellas, Seagen, Parexel, Hyperfine SPAC

July 12, 2021 Noah Goodson, PhD Season 2 Episode 58
Life Science Today
Life Science Today 058 – BGI Group, Genebass, Astellas, Seagen, Parexel, Hyperfine SPAC
Show Notes Transcript

Originally Published as The Niche Podcast

Muddy waters of data privacy and genetic databases, antibody-drug conjugate approvals, unabetted wild enthusiasm for CROs, and mobile MRIs go public.


Story References
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Music by Luke Goodson
https://www.soundcloud.com/lukegoodson


About The Niche Podcast

Life Science Today is your source for stories, insights, and trends across the life science industry. Expect weekly highlights about new technologies, pharmaceutical mergers and acquisitions, news about the moves of venture capital and private equity, and how the stock market responds to biotech IPOs. Life Science Today also explores trends around clinical research, including the evolving patterns that determine how drugs and therapies are developed and approved. It’s news, with a dash of perspective, focused on the life science industry.

Introduction

Welcome to The Niche Podcast – Your weekly rundown of the biotech, pharma, clinical research, and life science industries. I’m your host, Dr. Noah Goodson. This week, muddy waters of data privacy and genetic databases, antibody-drug conjugate approvals, unabetted wild enthusiasm for CROs, and mobile MRIs go public.


Disclaimer

The views expressed on The Niche Podcast are those of the host and guests. They do not necessarily reflect the opinions of any organizations or companies with which they are affiliated.


Muddy Waters of Genetic Data Privacy

Reuters released a concerning report this week that the Chinese sequencing company BGI Group has been utilizing genetic data in collaboration with the Chinese military. The report alleges that genetic screens collected from more than 8.4M pregnant women across 52 countries have been used in studies by the Chinese military.

The marriage of major corporations and government integrations occurs globally. From my experience living and working in China, I would say they take a unique form within their current political economic system. Perceptions of how and when government policies and corporations should work together and in what capacity are not necessarily aligned between the Chinese system and other nations.

The data collected by BGI from those living in China is stored in a national database, a technical public service, except the database is run by BGI. The reports suggests BGI is acting as a corporate genetic collaborator with the Chinese military to develop and screen for a variety of genetic conditions and illnesses. Privacy and patients-rights advocates globally have major concerns about how this data could be used in the long run.

BGI on their part, denies any wrong-doing, saying they are working with the military on strictly academic projects. The allegations here are concerning, but for those who like to cast shade on Chinese growing political force, it’s worth remember that the US military spends billions a year in complex integrations across the biotech industry. As the world re-opens post-pandemic and Chinese investment in biotech increases, expect significant ongoing tussles over privacy and patents’ rights to continue.


Data Privacy and Public Access

A new database is being launched by AbbVie, Biogen, and Pfizer, in collaboration with the Broad Institute of MIT and Harvard. Genebass is a genetic database covering over 280,000 individuals from the UK Biobank. The database directly connects phenotype-gene associations across 3,817 observed phenotypes. The goal is understanding the interconnection of genes and diseases to find to new cures. So how is this different from what China is doing? Perhaps the clearest delineation is not one of moral superiority, but a pragmatic one of institutional goals. Big pharma companies want to use human data to make better drugs to make more money. Some may question the morality of these institutions but their fundamental self-interests lie in treating human diseases. I’m dubious of the goals of the Chinese military, but it’s certainly not an institution that is fundamentally rewarded for improving human lives. Underlying the evolving landscape is the question; where does ownership start and end on the code that unites us all as humans? 


PADCEV Earns Approval

The antibody-drug conjugate (ADC) chemotherapy PADCEV created by Astellas Pharma and Seagen has received additional approvals from the FDA to treat locally advanced metastatic urothelial cancer. This approval is specifically for individuals who have already received other treatments like PD-1 inhibitors. The advancement in the space is critical as there remain fairly sizeable unmet need categories across bladder cancers. Originally approved in 2019, PADCEV was projected to sell $1.3B this year. It’s possible these accelerated new approvals will result in moderately increased guidance on the back half of 2021. By the way, the class of antibody conjugated drugs are quite cool. Imagine a classic Y-shaped protein of an antibody. Along the legs and arms molecules of chemotherapy drugs are molecularly bound to the antibody. The antibody itself is specifically targeted to the common cell surface marker of a given cancer. After injection the antibody finds the targeted marker, bind the cancer cell, is engulfed, and there releases the attached drug payload. Obviously we have not biochemically perfected this process yet. But continued advancement in antibody targeting and the linker between antibodies and drugs means the field of 11 currently approved ADCs will absolutely evolve. Across the coming few years, expect a robust suite of ADC treatments for cancers with distinctive surface proteins to continue to emerge and garner additional approvals for the 11 that already exist.


Parexel and Why $8.5B Matters

On my off week, the news dropped that Parexel is being acquired for $8.5B. After just about 4 years under the ownership of Pamplona Capital, the company has gained $5B in value. And it’s almost certainly not the end of this trajectory. Remember, PPD went public with a $9B valuation last year, only to be acquired by ThermoFisher for $17.4B this year. I’ve told you a dozen times there will continue to be a string of mergers and acquisitions in the CRO space. So where does the Parexel deal fall in industry trends? I don’t know that this is really a crazy move, but the involvement of Goldman Sacks suggests a transition to even more mainstream investors in the industry. It also means lots of folks are taking big bets on the intense growth of the clinical research industry. This won’t be the last big acquisition of 2021. In a broader context, the hype will probably mean more companies trying to spin up quick-sell solutions and positioning themselves to be acquired. Some of this will mean solid innovation by brilliant teams of industry leaders, but I also expect a decent number of companies that go heavy on the sizzle, light on the steak. 


Hyperfine Double-SPAC

The mobile MRI creator Hyperfine is going public in $580M SPAC + acquisition deal. If I’ve got this right, they are going public through a SPAC that is simultaneously acquiring Liminal Sciences and putting both companies under the Hyperfine brand with multiple mobile scanning products and a ton of cash in the bank. Back in episode 34 we mentioned the $90M series D and Hyperfine’s plans to role out their mobile MRI solutions across the market. Now flush with cash and public with Liminal’s brain-sensing technology expect a combo of R&D and intense global sales across the next 18 months. I would not be surprised if they are really aiming for a multibillion-dollar buyout in the next 2 years from a market leader like Siemens or GE.


Closing Credits

Thanks for joining me on The Niche Podcast; your weekly summary of top news in the biotech, pharma clinical research, and life science industries. You can learn more at thenichepod.com or find us on your favorite podcast app. Like, comment, subscribe, and most of all share with your friends. If you like what you hear, please rate and review, it really helps us. Once again, I’m Dr. Noah Goodson, I’ll see you next week.