Life Science Today 041 – NeoGenomics + Trapelo, Medtronic, Gyroscope, Design

Originally Published as The Niche Podcast

Mergers in precision oncology testing, Medtronic breakthrough valve replacement, Gyroscope raises capital for AMD, and small molecule genetic treatments get $240M IPO.


Sponsors
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Story References
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Music by Luke Goodson
https://www.soundcloud.com/lukegoodson

Life Science Today is your source for stories, insights, and trends across the life science industry. Expect weekly highlights about new technologies, pharmaceutical mergers and acquisitions, news about the moves of venture capital and private equity, and how the stock market responds to biotech IPOs. Life Science Today also explores trends around clinical research, including the evolving patterns that determine how drugs and therapies are developed and approved. It’s news, with a dash of perspective, focused on the life science industry.

Transcript

Introduction

Welcome to The Niche Podcast – Your weekly rundown of the biotech, clinical research, and life science industries. I’m your host, Dr. Noah Goodson. This week, mergers in precision oncology testing, Medtronic breakthrough valve replacement, Gyroscope raises capital for AMD, and small molecule genetic treatments get $240M IPO.


NeoGenomics Acquires Trapelo Health for $65M

NeoGenomics, a leading provider of oncology-focused genetic screening has acquired Trapelo Health in a $65M deal. In early February, we highlighted NeoGenomics collaborative partnership with Paraxel, a leading CRO. This new deal brings Trapelo under the NeoGenomics family for $35M in cash and $30M in stocks.

Trapelo is also in the precision oncology space. Basically they provide a system for precision medicine genetic test identification. Their proprietary data-driven framework allows providers to input the specifics of an oncological diagnosis and then identify appropriate tests that could clarify which treatment group an individual might fall into. This is a critical piece of supporting software that can allow patients who are potential candidates for novel precision oncology to be identified and then subsequently given the opportunity to engage with novel therapies.

If you take a step back, it’s pretty easy to see how this glorified algorithmic flowchart with system integration forms a critical link in an ecosystems. You have a ton of new precision oncology startups and products from major companies being developed. CROs (like Paraxel) are positioning themselves to run these trials, and critical in this pipeline is the ability to identify and recruit a patient population. NeoGenomics now solves two problems. First, physicians using the Trapelo platform can identify who to test with what test and in a way the integrates across their network, then NeoGenomics’ labs execute on the tests, and feed participants into trial pipelines. It takes little acumen to see this platform will continue to provide value for hospital networks long-run as they move from participant recruitment to patient treatment in the next 5 years.

In the evolving precision oncology space, NeoGenomics has identified the niche of precision oncology genetics as their space, they’ve stuck a flag in the ground, and are saying, “we will be a leader here!”


Medtronic Receives FDA Approval for Minimally Invasive Transcatheter Pulmonary Valve

Medtronic, the leading medical device company, has received FDA approval for an incredible new pulmonary valve to treat people with congenital heart disease. Many people with congenital heart disease face multiple complex and invasive open-heart surgeries throughout their lifetime. This new valve can replace the right ventricle in certain patients. The amazing part is that it is not an invasive surgery. I can’t say this better than the report “the valve is loaded onto a catheter and delivered via a small incision in the femoral vein or in the neck and placed directly inside the heart.” Incredible. This is yet another step in the development of surgical solutions that circumvent the need for open, invasive, and dangerous surgeries. Of course, I don’t think this means there is no risk of valve replacement. However, even just thinking of the recovery time and emotion distress alone, this seems like a major advancement.


Sponsor

Developing a new product in the biopharma space is incredibly challenging. There are design barriers, capital to raise, and regulatory hurdles. The Scope Method provides consultative solutions to navigate industry specific challenges. We’ve helped companies pivot into new therapeutic spaces, change trajectory through clinical insights, and empowered CEOs with tools that turns their data into stories that raise capital. The Scope Method will help you develop data driven strategic processes. Find out more at thescopemethod.com.


Gyroscope Therapeutics Raises $148M Series C

Gyroscope Therapeutics, a clinical stage gene therapy company, has raised $148M series C. Their lead candidate in phase II clinical trials, GT005, is a onetime gene-therapy. GT005 treats dry age-related macular degeneration by driving compliment production. They’ve also designed a medical device call Orbit, which is a specialized flexible cannula that slides under the retina contouring to the globe from the periphery to reach the macula. Not super important unless you’re an eye nerd like me, but very cool for bolus volume delivery to degraded tissue in the central. Rather than a single catch all AMD trial, Gyroscope is enrolling both narrow and broad AMD targeted phase II trials.

There are at least half a dozen AMD gene therapies in development and probably more like 20, I’ve lost track. But it’s also a huge space with opportunities for more than one therapeutic. These trials will certainly have significant bearing on the future of Gyroscope and how narrow or broad the application of GT005 will be. Like all companies in the AMD gene therapy space, time is of the essence, since being second to market may mean significant additional hurdles.


Design Therapeutics Raises $240M IPO for Rare Diseases

Design Therapeutics had a slightly upsized IPO, raising $240M at $20/share. The company has a preclinical small molecule approach to treat a specific suit of genetic disorders that involve long stretches of repetitive DNA. In the case of certain diseases, these repeats disrupt the process of properly creating a protein. Design’s pipeline works by targeting these repeated areas in a diseases specific way and allowing the RNA and proteins to be produced properly by skipping or ignoring the repeated sequence. They definitely are slightly differentiated in the rare genetic disease space in that they are working through targeted small molecules rather than monoclonal antibodies or gene therapies. On opening, shares quickly doubled, and closed at a little North of $41 on Friday.


Closing Credits

Thanks for joining me on The Niche Podcast; your weekly summary of top news in the biotech, clinical trials, and life science industries. You can learn more at thenichepod.com or find us on your favorite podcast app. Like, comment, subscribe, and most of all share with your friends. If you like what you hear, please rate and review, it really helps us. Once again, I’m Dr. Noah Goodson, I’ll see you next week.