Today, a brief rundown of news involving Gilead and Padlock Therapeutics, as well as updates from Boundless Bio, Lonza and Bausch + Lomb that you may have missed.
Investors of Padlock Therapeutics have sued Bristol Myers Squibb for allegedly refusing to make milestone payments tied to its 2016 acquisition of the biotechnology startup, Endpoints News first reported. Bristol bought Padlock for $150 million in cash, and promised the startup’s shareholders up to another $450 million if certain progress points were met. A Delaware Chancery Court lawsuit unsealed this week and filed by investors including Atlas Venture, though, claimed Bristol has “reneged” on those obligations, according to the report. Bristol reportedly intends to respond to Padlock investors in court.
Disputes like this aren’t rampant, Padlock’s founding CEO Michael Gilman, now the head of Arrakis Therapeutics, told BioPharma Dive. But if that occurs, there are “substantial implications for everyone” because the “upfront/milestone structure is a blueprint for our industry,” benefits all parties involved, and relies on trust that buyers will act in good faith after a deal closes. “That there’s a breakdown in trust and good faith here is probably obvious. And it’s unfortunate for everyone involved,” Gilman said. — Ben Fidler
Dietmar Berger will succeed Merdad Parsey as Gilead’s top doctor, the drugmaker announced Thursday. A hematologist and oncologist, Berger was previously chief medical officer at Sanofi. At Gilead, he’ll oversee the company’s work in virology, oncology and inflammation, as well as its development and medical affairs units. Gilead previously announced Parsey’s plans to depart in the first quarter of 2025. “Dietmar’s exceptional leadership in global drug development, his track record in delivering transformational therapies, and the breadth and depth of his experience make him an ideal choice as Gilead’s Chief Medical Officer,” Gilead CEO Daniel O’Day said in a statement. — Ned Pagliarulo
Two Boundless Bio executives are resigning, alongside a decision by the company to stop developing one of its top drug candidates. Boundless said Thursday that Chief Medical Officer Klaus Wagner and Chief Business Officer Neil Abdollahian are stepping down in December and January, respectively. Boundless will search for a full-time replacement for Wagner while company adviser James Freddo serves as interim CMO, but it doesn’t intend to appoint a new CMO. Boundless also cited the “competitive landscape” in deciding not to advance a solid tumor drug into Phase 2 testing, as previously planned. The company has already laid off staff, and lost most of its market value, since going public in March. — Ben Fidler
Lonza plans to shed its “capsules and health ingredients” unit to focus on its core contract development and manufacturing business, the company confirmed Wednesday in announcing a new corporate structure. Under new CEO Wolfgang Wienand, Lonza will consolidate its current organization across nine business units into three business “platforms” focused on mammalian and drug product services, small molecules and specialized drug modalities. The CDMO expects its new model to deliver, on average, “low teens sales growth” in constant exchange rates. — Ned Pagliarulo
Contact lenses maker Bausch + Lomb confirmed it is exploring a potential sale in a Thursday statement responding to inquiries from the Canadian Investment Regulatory Organization about volatility in its share price. The Financial Times previously reported private equity firms Blackstone and TPG were considering buying the company, but on Tuesday wrote the deal may not happen due to Blackstone’s concerns over the price. In its statement, Bausch + Lomb said that it continues to consider a sale, but can’t give any assurances about reaching an agreement. The company is led by Brent Saunders, who sold Allergan to AbbVie for $63 billion in 2019.— Ned Pagliarulo
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- Source: https://www.biopharmadive.com/news/dietmar-gileads-cmo-padlock-bristol-myers/735474/