The Burrill Report


Acceleron Pharma and Celgene are broadening their ongoing collaboration with a new agreement to develop and commercialize ACE-536, a novel protein therapeutic to treat anemia that is ready for human clinical studies. The new agreement delivers an upfront payment of $25 million to Acceleron and makes it eligible for up to an additional $217 million in milestone payments.

The companies were already working together under a 2008 drug development agreement to develop ACE-011, or sotatercept, as a treatment for blood cancers. Acceleron received $50 million upfront and an equity investment by Celgene as part of that deal. Sotatercept is currently in mid-stage clinical trials in patients with chemotherapy-induced anemia and in patients with end-stage renal disease on hemodialysis. The two investigational biologics are biochemically distinct but both work to inhibit members of the TGF-beta superfamily involved in erythropoiesis, for the treatment of anemia.

Under the new pact, the companies will collaborate to develop both products and potentially others for treating anemia across a wide range if indications. They will jointly develop and commercialize ACE-536, for which Celgene will pay Acceleron $25 million upfront. As part of their deal, Celgene will have an option to future Acceleron programs developed for anemia.

“Acceleron and Celgene can now combine our strengths to develop molecules to treat a broad array of under-served diseases and conditions in which patients suffer from anemia,” says John Knopf, CEO of Acceleron. “To that end, we look forward to initiating the phase 1 clinical trial of ACE-536 within the next few months.”

Acceleron will be responsible for conducting initial clinical trials and Celgene will take over later stage clinical studies. Acceleron is paying a share of the development expenses through the end of 2012 after which Celgene will finance development. Acceleron is keeping North American co-promotion rights and is eligible for tiered double-digit royalties on worldwide net sales.

MSMB Capital, a New York-based hedge fund and major investor in AMAG, has offered to take the company private for $378 million, or $18 per share in cash, because it is opposed to AMAG’s planned merger with Allos Therapeutics. Shares of both AMAG and Allos plummeted after they announced their plan because many considered the combination of two companies with marketed products that had not lived up to their revenue potential as a poor match.

The MSMB offer is 25 percent above the AMAG’s closing price before the offer was made. MSMB said it would fire the company’s top management if it was successful. Even if MSMB does not prevail, its offer could derail the planned merger with Allos.

AMAG’s shares have dropped 49 percent in the past year as sales of its anemia drug Feraheme have fallen because dialysis clinics cut its use after changes in Medicare reimbursements. Allos has seen its shares plummet 60 percent during the past year. Its lymphoma drug Folotyn has had disappointing uptake since its approval almost two years ago.

Two digital health companies received significant funding from venture capitalists this week. Intuity Medical closed a $76 million series D financing round. Participants in the financing included new investors Accuitive Medical Ventures, and existing investors Investor Growth Capital, Thomas McNerney and Partners, Venrock, Versant Ventures, and U.S. Venture Partners.

Sunnyvale, California-based Intuity will use the funds to obtain U.S. Food and Drug Administration clearance for its self-testing glucose monitoring system for diabetics that combines a handheld device with a web-based data management tool, and prepare to market the product. The blood glucose self-monitoring market is estimated to be $8 billion worldwide and recent clinical studies have shown that frequent glucose testing can reduce the risk of diabetes-related complications.

New York City-based ZocDoc received a $50 million series C investment from DST Global, an investment firm focused exclusively on internet companies. It brings the total amount raised by the internet startup to $70 million and will allow ZocDoc to continue its expansion into new markets, and grow its base of doctors and patients.

ZocDoc is a web-based service that allows patients to find nearby doctors who accept their insurance, and book appointments instantly online, making it hassle-free. The service can tap into the hidden supply of availabilities, which includes the 10 to 20 percent of medical appointments that are cancelled or rescheduled at the last-minute. The service is free for patients and costs doctors who use the service $250 per month. ZocDoc currently offers over 5 million available appointments with doctors and medical practitioners in nine major metropolitan areas, and is used by nearly 700,000 patients each month. A mobile application makes the service available on smartphones.





August 05, 2011
http://www.burrillreport.com/article-celgene_and_acceleron_expand_their_collaboration.html