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Uncommon ventures launch to tackle uncommon diseases

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NEWS 950 VOLUME 19 | NUMBER 8 | AUGUST 2013 NATURE MEDICINE Uncommon ventures launch to tackle uncommon diseases CAMBRIDGE, MASSACHUSETTS — It’s been three days since Cristina Csimma moved into her company’s first office space, and already she is planning to relocate. The cofounder and chief executive of Cydan Development, the first drug accelerator focused on advancing therapies for rare diseases, points from a top floor conference room across the tree-lined courtyard outside to her company’s future home at 700 Technology Square. “The space is very long and thin,” Csimma says of what will become Cydan’s new headquarters toward the end of September. “I call it Chile.” For Csimma, the dimensions of the physical space the company will move into matter less than the location. “What’s important is being in a biotech and university hub in Tech Square,” she says. Her hope is to take advantage of the local drug-development know-how—as well as biomedical expertise from around the world—to rapidly generate a handful of promising start-ups in the orphan disease space, as well as to equip those nascent firms from the get-go with drug candidates with a high degree of clinical—and financial—success, all in an economically efficient manner. Recent advances in the understanding of the molecular underpinnings of rare diseases, including genetic targets, as well as a large unmet need in the patient population has made this area of medicine enticing for investors and researchers. The orphan drug market “is the new big thing,” says Christopher-Paul Milne, director of research at the Tufts Center for the Study of Drug Development in Boston. “It’s an area end result is the same, some RAS mutations can produce different patient outcomes and respond differently to therapies. “There are all kinds of totally unexpected, weird clinical observations that we don’t understand,” says McCormick. Misconceptions about this variation in Ras proteins have been the downfall of potential therapies in the past. White believes the field has learned its lessons: “We have come to a state of much more sophisticated ignorance.” Most experts agree that targeting Ras directly would be ideal, but it will require more creativity and focus on individual mutations. “Not all RAS genes are created equal, and, furthermore, not all Ras mutations are created equal,” says Der. “At the end of the day, it is possible that we may need not only isoform specific therapies but also mutation- targeted therapies.” New developments in the field suggest it is possible. At the Frontiers in Medicinal Chemistry meeting in San Francisco in June, UCSF chemist Kevan Shokat presented his discovery of a new small molecule that binds a specific K-Ras mutant present in melanomas. Meanwhile, chemist Greg Verdine, who last month took a leave of absence from Harvard University in Cambridge, Massachusetts, to lead a new startup company called Warp Drive Bio, has developed a technique called peptide stapling to bind mini-proteins to block K-Ras across the board. The NCI program aims to bring researchers like Shokat and Verdine to the same table and create a “Ras community,” McCormick says. That community will probably include industry players as well. Representatives from Genentech, Plexxikon and AstraZeneca, along with academic researchers, attended a workshop on the NCI project back in February. “There will certainly be interest in any new candidate drug targets that emerge from these projects,” says Jeff Settleman, senior director of discovery oncology at Genentech, which is based in South San Francisco. New pockets Within the past two years, many pharmaceutical companies, including Genentech, have restarted their Ras programs. Some researchers have even discovered potential pockets. The NCI hopes that a concerted effort that would bring researchers from disparate ends of the Ras field together will drive the innovation needed to produce a targeted drug, and many in the field agree. “We definitely have more tools, know much more, are smarter, than when a Ras- focused effort was made decades ago,” says Der. “I’m hoping...that we can potentially get some ideas from left field out there.” The Ras program will focus on five new projects. The first project will develop compounds that could target four common RAS mutants prominent in pancreatic, lung and colorectal cancers, although there’s some debate over whether these mutants behave the same way in different cancers. The second project will search for compounds that selectively target K-Ras—by far the most powerful driver of cancer among the Ras proteins. For example, a recent study from researchers in Germany showed that a small molecule called deltarasin prevents K-Ras from locking onto a protein called PDEδ that helps it interact with the cell membrane. In turn, the drug reduced tumor growth in mice (Nature 497, 638–642, 2013). McCormick’s own research suggests that K-Ras binds itself to make a dimer molecule—and blocking the formation of this self-binding and other K-Ras complexes will be the third goal of the NCI initiative. The fourth aim will be mapping the surface of K-Ras– mutated cancer cells to learn their protein composition and inform potential downstream targets using tools such as mass spectrometry and bioinformatics. The fifth and final project uses novel screening methods that prey on collateral damage in tumor cells in animal models and three- dimensional models of cells and tissues to test potential therapies. The projects address some of the major questions in the field of Ras research: whether to target Ras directly or indirectly, which arms of the Ras pathway are the most important, and whether to target specific mutants or isoforms. “I think if somebody’s going to make something happen, this is the way to do it—bring together diverse expertise at the right time,” says White. Many drugs that target Ras indirectly— particularly through the phosphoinositide 3-kinase and mitogen-activated protein kinase pathways—have already made it to clinical testing. For example, MEK162, co-developed by Novartis and Array BioPharma, has shown activity in N-Ras– mutated melanoma. But, targeting one arm of the Ras monster alone has proven inefficient in fighting Ras-driven tumors, so combination trials may provide a short-term solution. MEK162 is in phase 1b/2 clinical trials by itself and with other agents. The NCI hopes to have the program up and running by the beginning of the next budget cycle in October. Meanwhile, the Ras community is cautiously optimistic. Channing Der compares tackling Ras to climbing Mount Everest: “We’ve got to climb it, even though it’s tough.” Helen Thompson npg © 2013 Nature America, Inc. All rights reserved.
Transcript
Page 1: Uncommon ventures launch to tackle uncommon diseases

N E W S

950 VOLUME 19 | NUMBER 8 | AUGUST 2013 NATURE MEDICINE

Uncommon ventures launch to tackle uncommon diseases

CAMBRIDGE, MASSACHUSETTS — It’s been three days since Cristina Csimma moved into her company’s first office space, and already she is planning to relocate. The cofounder and chief executive of Cydan Development, the first drug accelerator focused on advancing therapies for rare diseases, points from a top floor conference room across the tree-lined courtyard outside to her company’s future home at 700 Technology Square. “The space is very long and thin,” Csimma says of what will become Cydan’s new headquarters toward the end of

September. “I call it Chile.”For Csimma, the dimensions of the

physical space the company will move into matter less than the location. “What’s important is being in a biotech and university hub in Tech Square,” she says. Her hope is to take advantage of the local drug-development know-how—as well as biomedical expertise from around the world—to rapidly generate a handful of promising start-ups in the orphan disease space, as well as to equip those nascent firms from the get-go with drug candidates

with a high degree of clinical—and financial—success, all in an economically efficient manner. Recent advances in the understanding of the molecular underpinnings of rare diseases, including genetic targets, as well as a large unmet need in the patient population has made this area of medicine enticing for investors and researchers.

The orphan drug market “is the new big thing,” says Christopher-Paul Milne, director of research at the Tufts Center for the Study of Drug Development in Boston. “It’s an area

end result is the same, some RAS mutations can produce different patient outcomes and respond differently to therapies. “There are all kinds of totally unexpected, weird clinical observations that we don’t understand,” says McCormick.

Misconceptions about this variation in Ras proteins have been the downfall of potential therapies in the past. White believes the field has learned its lessons: “We have come to a state of much more sophisticated ignorance.” Most experts agree that targeting Ras directly would be ideal, but it will require more creativity and focus on individual mutations. “Not all RAS genes are created equal, and, furthermore, not all Ras mutations are created equal,” says Der. “At the end of the day, it is possible that we may need not only isoform specific therapies but also mutation-targeted therapies.”

New developments in the field suggest it is possible. At the Frontiers in Medicinal Chemistry meeting in San Francisco in June, UCSF chemist Kevan Shokat presented his discovery of a new small molecule that binds a specific K-Ras mutant present in melanomas. Meanwhile, chemist Greg Verdine, who last month took a leave of absence from Harvard University in Cambridge, Massachusetts, to lead a new startup company called Warp Drive Bio, has developed a technique called peptide stapling to bind mini-proteins to block K-Ras across the board.

The NCI program aims to bring researchers like Shokat and Verdine to the same table and create a “Ras community,” McCormick says. That community will probably include industry players as well. Representatives from Genentech, Plexxikon and AstraZeneca, along with academic researchers, attended a workshop on the NCI project back in February. “There will certainly be interest in

any new candidate drug targets that emerge from these projects,” says Jeff Settleman, senior director of discovery oncology at Genentech, which is based in South San Francisco.

New pocketsWithin the past two years, many pharmaceutical companies, including Genentech, have restarted their Ras programs. Some researchers have even discovered potential pockets. The NCI hopes that a concerted effort that would bring researchers from disparate ends of the Ras field together will drive the innovation needed to produce a targeted drug, and many in the field agree.

“We definitely have more tools, know much more, are smarter, than when a Ras-focused effort was made decades ago,” says Der. “I’m hoping...that we can potentially get some ideas from left field out there.”

The Ras program will focus on five new projects. The first project will develop compounds that could target four common RAS mutants prominent in pancreatic, lung and colorectal cancers, although there’s some debate over whether these mutants behave the same way in different cancers. The second project will search for compounds that selectively target K-Ras—by far the most powerful driver of cancer among the Ras proteins. For example, a recent study from researchers in Germany showed that a small molecule called deltarasin prevents K-Ras from locking onto a protein called PDEδ that helps it interact with the cell membrane. In turn, the drug reduced tumor growth in mice (Nature 497, 638–642, 2013).

McCormick’s own research suggests that K-Ras binds itself to make a dimer molecule—and blocking the formation of

this self-binding and other K-Ras complexes will be the third goal of the NCI initiative. The fourth aim will be mapping the surface of K-Ras– mutated cancer cells to learn their protein composition and inform potential downstream targets using tools such as mass spectrometry and bioinformatics. The fifth and final project uses novel screening methods that prey on collateral damage in tumor cells in animal models and three-dimensional models of cells and tissues to test potential therapies.

The projects address some of the major questions in the field of Ras research: whether to target Ras directly or indirectly, which arms of the Ras pathway are the most important, and whether to target specific mutants or isoforms. “I think if somebody’s going to make something happen, this is the way to do it—bring together diverse expertise at the right time,” says White.

Many drugs that target Ras indirectly—particularly through the phosphoinositide 3-kinase and mitogen-activated protein kinase pathways—have already made it to clinical testing. For example, MEK162, co-developed by Novartis and Array BioPharma, has shown activity in N-Ras–mutated melanoma. But, targeting one arm of the Ras monster alone has proven inefficient in fighting Ras-driven tumors, so combination trials may provide a short-term solution. MEK162 is in phase 1b/2 clinical trials by itself and with other agents.

The NCI hopes to have the program up and running by the beginning of the next budget cycle in October. Meanwhile, the Ras community is cautiously optimistic. Channing Der compares tackling Ras to climbing Mount Everest: “We’ve got to climb it, even though it’s tough.”

Helen Thompson

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Page 2: Uncommon ventures launch to tackle uncommon diseases

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NATURE MEDICINE VOLUME 19 | NUMBER 8 | AUGUST 2013 951

that has a lot of enthusiasm behind it and obviously some investment interest.”

Cydan formally opened for business on 11 April with $16 million from three funders: the Washington, DC–area venture capital (VC) firm New Enterprise Associates (NEA), a life sciences property investor called Alexandria Real Estate Equities, and Pfizer Venture Investments, the VC arm of the New York drug giant. The money is expected to last for four years and is designed to help Cydan prep promising research programs in the rare disease context for commercialization. The company’s business model involves hiring contract research organizations to run toxicology and pharmacology studies, along with other types of tests, and then to use the resulting data to decide to whether or not to spin out new companies. “We are the de-risking step,” Csimma says.

In this way, Csimma hopes to form up to five companies before the money runs out. Her phone is already ringing. “People are contacting us extensively with opportunities,” she says. “Some of it is spontaneously, based on hearing the news that Cydan exists, and in other cases prompted by very targeted outreach we’ve undertaken.”

Cydan is not alone in seeking new ways to finance and develop drug opportunities in the orphan disease space. On 20 June, Kurma Life Sciences (KLS) Partners, a French VC firm, announced the launch of Kurma Biofund II, the first VC fund dedicated primarily to financing therapeutics in the rare diseases arena. According to Thierry Laugel, a managing partner at KLS Partners in Paris, the new fund—which organizers hope will reach €75 million ($96 million) before the end of the year—will finance between 10 and 15 early-stage companies over the next decade. At least half of the fund will be spent on rare disease opportunities, with more than 80% of investments devoted to spinoffs from European universities.

“There is space for someone like us to extract the very best products now,” says Laugel. The fund has raised €44 million to date, the bulk coming from GlaxoSmithKline, the British drug company, and BPI France, a government-backed investment bank. A Paris-based private equity firm called Idinvest Partners and NEA contributed as well.

Rare opportunitiesInvestments in VC-backed companies with a focus on orphan disease have recently begun to prove their worth. In June, for

example, the biotech firms Prosensa and PTC Therapeutics, both of which have drugs in clinical development to treat rare muscular dystrophies, each closed their initial public offerings (IPOs)—a financial boon for the companies’ early investors. “The opportunity is pretty rich right now,” says Thomas Caskey, a molecular geneticist at Baylor College of Medicine in Houston who previously led a VC fund called Cogene Biotech Ventures.

NEA was one of the main early investors in Prosensa—and it was the payoff of Prosensa’s IPO that in part convinced the firm’s general partner David Mott to invest in Cydan and the Kurma Biofund. Both are “intended to be focused on early-stage, asset-centric acceleration of academically identified druggable opportunities in the rare and orphan disease space,” he says. “Strategically they are very much connected, and I believe they are quite synergistic.”

In a first concrete act of synergy, KLS Partners and Cydan entered into a formal collaboration on 9 July, although terms of the agreement were not disclosed. “It doesn’t have a formal element,” says Csimma. “It’s going to be very opportunity driven.”

However, even active investors in orphan diseases have concerns that the investments in this space might not necessarily pay off. Bruce Booth, for one, worries that there might be “a bubble in the orphan space”—one that even he might be helping to inflate.

Booth is a partner at Atlas Venture in Cambridge, Massachusetts. In December 2011, his firm announced a multiyear

collaboration with Shire Human Genetic Therapies, a Massachusetts-based division of the Irish company Shire, which has a specialty in orphan diseases. The goal of the collaboration is to identify new investment opportunities in early-stage rare disease therapeutics. Earlier this year, the strategic alliance yielded its first formal output when Nimbus Discovery, an Atlas-backed startup based in Cambridge, Massachusetts, inked a deal with the local Shire branch to co-develop oral drugs for lysosomal storage disorders.

According to Booth, though, it’s unclear how much return on investment the orphan space can continue to produce for investors. “Lots of interesting returns have led to a real influx of capital and interest [in rare diseases],” he says. “It will be intriguing to watch whether these play out or not.”

Even if there is a bubble, Csimma remains convinced that Cydan’s innovative approach to orphan drug development will ultimately pay off. “You get the benefit of all the companies that you’re not going to build as a result of a the ‘no-go’ decisions you made during de-risking, and you made those decisions in a much more capital efficient way,” she says. “So, from an investor perspective, you go into a new company in a much more informed way.”

Mott agrees: “It’s the nexus of science and business right now.”

Elie Dolgin

Two of a kind: Cydan's Cristina Csimma and NEA's David Mott both see market potential.

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