Medicine Last Mile: Why The Pharmaceutical Company Roivant Buying Unfinished Drugs

“When it comes to young owners of medical companies that come to mind of failed history. For example, the failure of the project Theranos, founded by Elizabeth Holmes. As it turned out, the company lied to investors and clients, advertising equipment, which actually did not work as required. Another example is an entrepreneur and CEO of Turing Pharmaceuticals Martin Shkreli, whose company bought the rights to manufacture drugs toxoplasmosis and inflated its price from $13,5 per pill to $750,” writes TechCrunch. Such incidents, continues the author notes, often interfere with work and other young companies in the industry.

Among the leaders of such projects — Vivek Ramaswami. 31-year-old businessman runs the company Roivant. According to his idea, once Roivant needs to merge lots on pharmaceutical companies to create new drugs and find ways to reduce the cost of production of existing ones. Ramaswami — a native American city of Cincinnati.

Studied biology at Harvard, and then law at Yale. In 2007, a future entrepreneur got a place analyst at new York hedge Fund QVT Financial. According to him, he first personally encountered the problem, the solution of which works now. Vivek Ramaswami noticed that many pharmaceutical companies refuse to work on new drugs, even if development promise to be effective — someone decides to focus on another area, someone does not have enough resources to bring development to the end. “The owner saw an opportunity.

There was a lot of almost completed studies that if means could be quickly completed and bring the drug to market.”. In 2014 Ramaswami founded his company. Fund QVT Financial, together with the Israeli company Dexcel Pharma has invested in the project $100 million. And in a few years, according to TechCrunch, the startup has managed to achieve considerable success.

“While Silicon valley was going crazy for Theranos, Roivant acquired the rights to the development and production of a dozen drugs. One of them is a remedy against Alzheimers disease, around which was later formed a separate company Axovant Sciences. In 2015 Axovant Sciences went IPO, although it was not yet completed a phase three trial of the drug,” says TechCrunch. IPO of the project was the largest biotechnology company in the United States — Axovant Sciences was able to attract during the $360 million. The stock is Axovant, which in early trading was worth $15, traded at a price of $13.5.

Another project Roivant — Enzyvant Sciences. The company is engaged in the study of rare genetic diseases such as Farber disease and syndrome Di Georgie. According to Ramaswami, these diseases are too poorly understood “is often their existence and ignored”. With the oldest Japanese pharmaceutical companies Takeda Pharmaceuticals Vivek Ramaswami launched another medical start — Myovant Sciences. This company is focused on diseases and health problems faced by women.

Drugs, the development of which she does to help women fight endometrium or fibroids (a type of benign tumors) of the uterus. Now Takeda Pharmaceuticals is conducting the third phase of testing the drug to combat fibroids of the uterus in Japan (the third phase of clinical trials drug is tested on more than 1000 patients and preparing for the approval of drugs by regulatory bodies). In 2016 Myovant Sciences has also placed its shares on the stock exchange. The companys IPO became one of the largest biotech exits to the stock exchange for the year. The main advantage of Roivant, says the author of the article on TechCrunch, is its approach to the management of Finance.

Drug to combat Alzheimers disease, which develops Axovant, was purchased by the company GlaxoSmithKline, has decided to focus on another area. In advance Axavant paid $5 million. In case of withdrawal of the drug on the market, the project will pay $160 million and 12.5% of sales. According to TechCrunch, the drug could bring the company a lot of money, and buying will be quite profitable. By 2017 Roivant attracted more than $1 billion of funding.

The company does not disclose the exact investment amount and the names of the investors, but says that the latest round of the company, which was attended by hedge Fund Viking Global Investors, “was one of the largest if not the largest transaction in the biotech market.”. Roivant also relies on strong professionals. For example, a company Myovant Sciences directs Lynn Seeley — endocrinologist with 20 years of experience in the development and research of new drugs. Ramaswami plans to create separate companies for each drug. To work on the drugs involved scientists who were developing initially.

If the development is successful, researchers will receive a great reward. If not — go to other projects under the wing of the holding. In the traditional pharmaceutical firms, writes TechCrunch, the scientists get the big prize, but only if the drug sells well, and if development has stalled — most likely to be laid off. According to the businessman, such a policy will allow the company to capture a leadership position in the market. “It is very important to attract and retain talented researchers in the company, even if one drug failed,” he says.

As writes TechCrunch, industry professionals concerned with many issues associated with such companies — including, are not formed in Biomedicine “bubble”. Journalists worried that the company Ramaswami “came from literally nowhere, and is completing the development of a drug to combat Alzheimers disease”. The author notes that although Roivant really young, she has no hundred percent winning project. The companys founder says that there is no certainty that the drug against Alzheimers disease would work, though Axovant and her researchers conducted “deep research”. “The management of the company and its investors are hoping that with the pace in which the company operates, its investments will pay off and at least some of the drugs are successful.

Maybe shell even be able to create something completely new — with the help of technology and researchers, which she finds to continue existing projects,” writes the author of the note. If this does not happen — well, the comparison with Holmes and Shkreli not be avoided. But Ramaswami dont really care. “The more young people break into the industry with promises to completely change the configured more. skeptical experts — laughing entrepreneur. But our business model is irrelevant.

In addition, I want to encourage young professionals to pay attention to other sectors other than Finance and consulting, especially on the pharmaceutical market. There are many issues that have long ignored. And the market is many times larger than the volumes of most of the industries in which the companies of Silicon valley.”.

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