LogicBio’s lead gene-editing remedy is rising from a scientific maintain, money reserves to assist that program are dwindling, and the corporate is dropping its inventory itemizing. AstraZeneca is easing the pressures on the biotech with a $68 million buyout that the pharmaceutical large sees as a means so as to add a brand new genetic medicines dimension to its uncommon illness drug pipeline.
AstraZeneca introduced Monday that its Alexion uncommon illness unit has agreed to amass all excellent LogicBio shares for $2.07 every. That’s a greater than 666% premium to LogicBio’s closing worth on Friday, however nonetheless nicely wanting the $10 per share that the Lexington, Massachusetts-based biotech was in a position to fetch when it went public 4 years in the past. LogicBio shares closed Monday at $2.01 apiece.
LogicBio is a part of a brand new contingent of corporations creating different approaches to gene modifying. Most gene modifying applied sciences make use of a reducing enzyme to snip DNA at a focused location. These approaches introduce the danger of harmful or undesirable edits. LogicBio makes use of a pure DNA restore mechanism as a strategy to exactly insert a gene. The corporate calls its know-how GeneRide.
Lead LogicBio program LB-001 is at present in Section 1/2 testing for methylmalonic acidemia (MMA), a uncommon inherited dysfunction that results in developmental delays and different issues that require hospitalization. The one-time remedy is designed to knock in a corrective gene to drive correct expression of a key protein.
The FDA positioned a scientific maintain on the trial in February, a pause that got here after the corporate reported a second affected person within the examine developed thrombotic microangiopathy, a blood vessel complication that has been related to different genetic therapies delivered by adeno-associated viruses. These instances within the LB-001 examine resolved. In Might, the FDA lifted the scientific maintain after the corporate modified the scientific trial protocol to extend affected person monitoring, which in flip will lengthen the time wanted to finish the examine. The examine has a focused enrollment of eight sufferers.
Along with the regulatory setback, LogicBio has cash issues. The corporate’s monetary experiences for the previous yr raised doubt in regards to the firm’s potential to proceed as a going concern. In accordance with its report of second quarter 2022 monetary outcomes, LogicBio’s money place was $38.8 million as of June 30—sufficient cash to final one other yr. Including to the issues is the looming lack of its Nasdaq itemizing. Final month, the alternate despatched the corporate a proper delisting discover for failing to take care of a minimal $1 worth regardless of having a 180-day grace interval to regain compliance with the requirement.
Regardless of the monetary woes, LogicBio’s lead program has resumed and is displaying encouraging indicators. In August, the corporate reported preliminary outcomes for 4 sufferers within the Section 1/2 examine displaying detection of a biomarker within the blood that signifies integration of the gene carried by the remedy. Outcomes additionally confirmed expression of the important thing protein. In a analysis observe, William Blair analyst Raju Prasad wrote that whereas the precise ranges of the biomarker stay undisclosed, LogicBio advised that they aren’t at present at ranges to have an effect on illness regression. Nonetheless, the corporate hopes these ranges will enhance over time.
The outcomes up to now apparently gave AstraZeneca sufficient confidence to amass LogicBio. Along with a platform for delivering and inserting genes, the corporate additionally has a platform for bettering viral vector manufacturing. The pharma large stated that these applied sciences will turn into a part of its technique for creating new medicines for uncommon genetic illnesses.
“The proposed acquisition of LogicBio is a big improvement for our rising analysis in genomic medication,” Marc Dunoyer, CEO of Alexion, AstraZeneca Uncommon Illness, stated in a press release. “LogicBio’s individuals, expertise and platforms present new scientific capabilities by including best-in-class know-how and experience to our genomic medication technique.”
The AstraZeneca uncommon illness unit is the product of an acquisition. In 2021, the pharma large paid $39 billion to amass Alexion Prescribed drugs, an organization with blockbuster medication for uncommon blood issues. The boards of administrators of each AstraZeneca and LogicBio have authorized the LogicBio acquisition, which is anticipated to shut within the subsequent 4 to 6 weeks. Alexion relies in Boston. The AstraZeneca subsidiary plans to maintain LogicBio staff at their present location in close by Lexington.
Picture: Christopher Furlong, Getty Photos
