Breaking News

Biogen's boardroom fallout, academic vindication, & the how the NIH factors into drug pricing

June 14, 2023
National Biotech Reporter
Hello, everyone. Damian here with the latest on Biogen's boardroom drama, the end of an academic debacle, and some ideas from Sen. Bernie Sanders. 

The need-to-know this morning

  • Allogene Therapeutics, a developer off-the-shelf cell therapies for cancer, said Chief Financial Officer Eric Schmidt was leaving the company to spend more time with his family on the East Coast. A search for a new CFO is underway. 

Biotech

Biogen's board scandal is a headache for its CEO

Last year, when drug industry veteran Chris Viehbacher took over as CEO of Biogen, Wall Street saw him as a steadying force for the wayward company and a strong personality who would stand up to its quarrelsome board.

Seven months into his tenure, Biogen's board has saddled Viehbacher with the first crisis of his tenure at the company. Alex Denner, a long-time director, nominated a biotech executive who is also the mother of his child to succeed him on the board, and Biogen chose not to disclose the couple's relationship to shareholders, an omission that shocked people close to the company and undermined the notion that Biogen was changing for the better.

"It's just disappointing to see after all the criticism that has been levied at the company over the last few years, there really seems to be no self-awareness going into this recommendation," said Brian Skorney, a securities analyst at Baird who covers Biogen.

Read more.



Research

Vindicated MIT professor says fraud probe decimated his lab

In 2019, after Ram Sasisekharan was accused of scientific fraud by some of his peers, the MIT professor went quiet. And stayed quiet — for nearly four years.

There was a reason for that: MIT had mounted an internal review of the allegations, and school policy mandated that all parties keep the whole thing confidential. Recently, however, the review concluded, clearing Sasisekharan of wrongdoing and freeing him to speak publicly.

That has allowed him both to post a detailed defense of his work and to bemoan the price paid because of the investigation, which he said sidelined his work and decimated his team.

"The feeling was that we were guilty of something until we were proven innocent," Sasisekharan, a decorated scientist whose work helped launch six biotech companies, said in an interview with STAT. "There were times I would wake up wondering if it had all been a nightmare."

Read more.


Washington

Sanders wants NIH to get tougher with drug companies over prices

Sen. Bernie Sanders earlier this week threatened not to proceed with the confirmation of President Biden's nominee to lead the National Institutes of Health until the administration provides a "comprehensive" plan to lower prescription drug prices. And, it turns out, he has some ideas of his own.

As STAT's Ed Silverman reports, Sanders yesterday called for the NIH to reinstate a provision into contracts with drug companies that would require them to set reasonable prices when they license the agency's inventions. The NIH previously incorporated such a clause in contracts with drug companies but removed the language in 1995 after the industry became reluctant to commit to pricing terms while projects were in the early stages of development.

Sanders' appeal coincided with the release of a report from the Senate health committee showing that medicines developed with help from the NIH have often cost Americans more than what is paid in other countries.

Read more.


Biotech

Protagonist Therapeutics looks to pivotal trial for its rare blood disorder therapy

Bay Area-based Protagonist Therapeutics has hit some drug development hurdles in recent years. In 2021, the FDA put studies of its experimental rare blood disorder drug, rusfertide, on hold due to concerns about skin malignancies. While that hold was lifted quickly, the FDA, citing further concerns about malignancies, yanked the therapy's "breakthrough" designation the following year.

But as STAT's Andrew Joseph reports, company executives at last weekend's annual meeting of the European Hematology Association, sounded confident about the road ahead for the drug, designed as a treatment for a chronic condition called polycythemia vera, which is characterized by the overproduction of red blood cells..

In presentations at a press briefing and at a session for late-breaking studies, researchers outlined what they portrayed as promising Phase 2 results indicating rusfertide helped stabilize red blood cells at healthier levels and improved patients' symptoms, including fatigue and brain fog. A Phase 3 trial of rusfertide is ongoing.

Read more.


More around STAT
Check out more exclusive coverage with a STAT+ subscription
Read premium in-depth biotech, pharma, policy, and life science coverage and analysis with all of our STAT+ articles.

More reads

  • EU plans changes to pharmaceuticals law to avoid medicine shortages, Reuters
  • Leap jumps ahead in cancer game with Flame merger, BioSpace
  • Large health insurers lowered barriers to fair access to some drugs, analysis finds, STAT
  • PwC predicts 'flurry' of $5 billion to $15 billion biotech deals in 2023, Endpoints

Thanks for reading! Until tomorrow,


Enjoying The Readout? Tell us about your experience
Continue reading the latest health & science news with the STAT app
Download on the App Store or get it on Google Play
STAT
STAT, 1 Exchange Place, Boston, MA
©2023, All Rights Reserved.

No comments