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October 1, 2019 Bioscience Notebook

Arvinas, Bayer launch crop-science biotech

PHOTO | Courtesy Bayer John Dombrosky, CEO of new startup Oerth Bio.
By Natalie Missakian

New Haven-based Arvinas Inc. and pharma giant Bayer on Tuesday officially launched a new biotech company that aims to help farmers better protect their crops.

The spinoff, Oerth Bio (pronounced Earth), will leverage Bayer’s crop-science expertise and Arvinas’ protein-degrader technology, known as PROTAC, to develop sustainable agricultural products, officials from both companies said.

The two life science companies first announced plans for the joint venture in June. At the time, Arvinas CEO John Houston told New Haven BIZ this would be the first time a protein degrader, an emerging type of treatment in the oncology field, would be applied to plants. 

Arvinas has developed drugs for breast and prostate cancer using its PROTAC technology, which harnesses the body’s own protein-disposal system to eliminate proteins that cause disease.

The companies are hoping the technology can also be used to address resistance mechanisms plants have developed against existing pest-control products. 

“We are incredibly excited to be a part of this first exploration of PROTAC technology in agriculture,” said Bob Reiter, head of R&D for Bayer’s crop-science division, which already has a robust portfolio of herbicides, pesticides and other agricultural products. “The work that will be done by Oerth Bio could help farmers overcome the diseases, pests and weeds that lead to lost crop yields every year.”   

Arvinas and Bayer have tapped agriscience veteran John Dombrosky to lead the new company. Based in Raleigh-Durham, N.C., he is currently Oerth Bio’s only employee.

Dombrosky was previously CEO of the Durham, N.C.-based AgTech Accelerator, which helps discover and develop emerging agricultural technology companies, according to its website.

“With extensive expertise in crop science, funding and company building, John is an ideal fit to lead Oerth Bio,” said Arvinas’ Houston in a statement. 

Dombrosky said in an email Tuesday morning that the company is in the process of setting up a lab and chemistry operations in New Haven, likely in Science Park, and is focused on “aggressively making key hires to work closely with Arvinas and Bayer to quickly develop the PROTAC platform for agricultural use.”

“However, down the road we may need to consider alternative agriculture-centric sites like [Raleigh-Durham’s] Research Triangle Park, as the company gains traction and requires access to an ecosystem with specific resources like greenhouses, formulation, biology and crop protection product-development expertise,” he added. 

Bayer has committed $55 million to the startup under a deal that closed July 15. Bayer and Arvinas will share governance and equity ownership equally.

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A drug being developed by New Haven-born Achillion Pharmaceuticals to treat symptoms of a rare blood disease has been granted  “breakthrough therapy” status by federal regulators. 

The U.S. Food & Drug Administration awards the sought-after label to drugs that have shown potential for substantial improvement over existing treatments for serious and life-threatening diseases. 

The program, begun in 2012, aims to accelerate approval of new drugs for afflictions that have limited treatment options. 

Achillion, based in suburban Philadelphia with a research presence in New Haven, said last week it earned the designation for its Factor D inhibitor, danicopan. Factor D is an immune system enzyme that plays a role in some immune-related disorders. 

The FDA based its designation on promising interim data from a Phase 2 clinical trial for the treatment of anemia in patients with paroxysmal nocturnal hemoglobinuria (PNH) who did not fully respond to existing  treatment. 

According to Achillion, up to 75 percent of PNH patients taking the standard treatment, Soliris, still suffer from anemia afterwards. Soliris is the blockbuster drug sold by fellow New Haven-founded biotech Alexion Pharmaceuticals. Danicopan would be administered in combination with Alexion’s drug.

CEO Joseph Truitt said the FDA’s decision “underscores the urgent need for new treatment options for patients living with PNH.”

Achillion’s stock, which trades on the Nasdaq exchange under the symbol ACHN, rose 14 percent to $4.16 on the news last Wednesday. It was trading at $3.78 as of midmorning Tuesday. 

The company underwent a major leadership shakeup and layoffs last year and recently moved its C-suite to Blue Bell, Pa. 

Achillion expects to have full results of the Phase 2 study by the end of the year and will launch a Phase 3 trial in early 2020.

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New Haven big data biotech BioXcel Therapeutics Inc., which is testing drugs for agitation and pancreatic cancer in clinical trials, is looking to raise $19 million in a public offering. 

The company announced Friday it planned to offer 2.3 million shares of common stock at $8.25 a share.  

BioXcel has granted the underwriters a 30-day option to buy up to an additional 345,454 shares at the offering price. 

BMO Capital Markets Corp. is acting as book-running manager and  ThinkEquity, a division of Fordham Financial Management Inc., as co-manager.

BioXcel stock was trading at $7.38 as of mid-morning Tuesday, down from $10.02 a week ago. 

The company, which uses artificial intelligence to discover new uses for older drugs, trades on the Nasdaq under the symbol BTAI. It recently moved from Branford to New Haven’s Maritime Center at 555 Long Wharf Drive. 

Contact Natalie Missakian at news@newhavenbiz.com

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