Leading Health and Life Sciences in Nova Scotia

AGADA Biosciences: Facilitating Orphan Drug Development in Nova Scotia

LINK Drs. Eric Hoffman and Kanneboyina Nagaraju could have chosen a number of cities to relocate their growing business when they began to outgrow their lab space in Washington, D.C. With its established lab spaces, educated young talent, and business acceleration programs, Halifax was the clear winner. ReveraGen BioPharma was operating out of the Children’s National Medical Center in Washington, DC, where Dr. Hoffman and his team were developing a new drug, Vamorolone, for Muscular Dystrophy. However, with traditional approaches to drug development taking upwards of 15 years and a billion dollars to produce they faced many barriers. The industry was also experiencing changes at the time, that caused Dr. Hoffman to re-evaluate the research models. “Common diseases are becoming stratified into smaller and smaller groups and each group requires its own treatment regimen. There has been a lot of emphasis on rare diseases and orphan drug development over the last number of years,” says Dr. Hoffman. In recent years, there has been an increase in the number of incentive programs available for rare diseases research and with the Internet’s ability to consolidate those stakeholder communities internationally, it has created new opportunities for researchers. But, this also creates a fundamental problem; because these drugs are very targeted and if each drug costs a billion dollars and 15 years to make, the costs to patients will be astronomical. Realizing the shift in the industry and the need for better services, Drs. Hoffman and Nagaraju opened AGADA Biosciences in the Life Sciences Research Institute in 2013. The company’s primary goal is to meet the rapidly growing need for services that accelerate drug development for orphan diseases, with specific expertise in preclinical efficacy studies with biomarkers support. ReveraGen BioPharma recently developed a drug for Muscular Dystrophy that AGADA was able to bring to phase II clinical trials with Muscular Dystrophy patients. “At this point in time, it looks like we will receive approval in about eight years and for 30 million as opposed to 15 years and a billion dollars,” says Dr. Hoffman. AGADA’s success can be attributed to their first step of de-risking drugs and avoiding late stage failures. To do this, AGADA uses Dalhousie University’s state of the art mouse lab facility, also located in the Life Sciences Research Institute. Mice who develop muscular dystrophy have the same genetic mutation as human patients do, so if you develop a drug that makes the mice better, then you have de-risked that drug considerably. Dr. Hoffman states that proof of principle in an animal model is becoming increasingly requested by regulators, particularly in orphan diseases. “Traditionally, animal testing was used for toxicity, making sure you weren’t making an animal terribly sick before making a human terribly ill,” says Dr. Hoffman. “But, the whole paradigm is shifting – at AGADA we are working to make the mice better which anticipates making the human better.” AGADA has become the top tester of drugs in muscular dystrophy models and has grown quickly over the past three years. The company has seen a 60 percent growth rate each year and currently employs 13 people, with more than half coming from Nova Scotia universities. “One of the reasons we chose Halifax was because of the quality of a young, educated workforce,” says Dr. Hoffman. “We participate in the co-op programs at Dalhousie and Acadia because we see the value in keeping talent in the province.” Most recently, AGADA invested one million dollars along with three million from ACOA and half of a million from Dalhousie to develop “A Scientific and Clinical Hub for Orphan Drug Development” in Halifax that will help to accelerate orphan drug development beginning with developing treatments for three indications. The diseases in question are labeled “orphan diseases” but they occur in one in 5,000 to one in 10,000 babies. Preclinical research with the new therapies in zebrafish and mice have shown promising results that are expected to propel these programs through the clinical research stage. The project is expected to put Halifax and Nova Scotia on the map as the best place in Canada and one of the best sites in the world for such research and clinical work. Learn more about AGADA Biosciences at agadabio.com]]>

Appili Therapeutics Channeling Funds into Drug Discovery

entrevestor.com, written by Peter Moreira Kevin Sullivan had the pride of a guy showing off his new Cadillac. But it wasn’t a car he was displaying, it was the new laboratory that his company had recently moved into. The company is Halifax-based drug discovery outfit Appili Therapeutics Inc., which in May announced $3.3 million in funding, comprising equity, debt and grants. On the same day, Sullivan unveiled the company’s new lab in the Innovacorp Enterprise Centre in Halifax and introduced the team of PhDs working for the company. A month earlier, Appli had announced it received a special fast-track approval designation from the Food and Drug Administration. Not bad for a company that began last year. “Appili is a company that hasn’t been around long, and coming from where they started to where they are today is truly impressive,” said Scott Moffitt, the Managing Director of BioNova, the life sciences industry association in Nova Scotia. Appili is a notable company because of its leadership, its strategy and the story of how the company came together. Sullivan is a businessman operating in a segment that is often known for the high concentration of academics. He’s raised more than $40 million for various companies, and he brings a deep expertise in developing new drugs. Sullivan came to Nova Scotia in 2013 to take the helm at DeNovaMed, a Halifax company working on a cure for antibiotic-resistant viruses. He had previously spent 10 years (including four as COO) with London-based Viron Therapeutics Inc., which was developing a cardiovascular drug. Viron raised more than $35 million in equity and non-dilutive capital and took its lead product through Phase 2 trials. During his work in the biotech field, Sullivan met up with Brian Bloom and Jolyon Burton, the principals of the Toronto-based healthcare-focused investment boutique Bloom Burton & Co. Together, they decided to form a company in Halifax headed by Sullivan that would develop drug candidates. The first is ATI-1501, which aims to remove the nasty taste from an existing drug that treats Clostridium difficile infection, or CDI, an urgent antibiotic-resistant bacterial threat that causes 29,000 deaths annually. A drug called Metronidazole has been used to treat the condition since the 1970s, but kids with CDI don’t want to take it because of its dreadful taste. ATI-1501 removes the bitter taste. The Food and Drug Administration recently granted orphan drug designation to ATI-1501, meaning Appili could have an accelerated regulatory path and protection against competition for seven years. The company expects to begin clinical trials next year and have a product on the market in three or four years. The second drug candidate is ATI-1503, a drug that could fight deadly infections such as Klebsiella pneumoniae. The media is full of warnings about viruses that are resistant to antibiotics and Sullivan said this drug could help combat them, but it’s a longer, riskier project than the first drug. “We’re now entering a post antibiotic era, where a common cut could be deadly,” said Sullivan. “That’s what keeps us up at night.” Sullivan described Appili’s strategy as one based on “hitting home runs and singles.” The idea is that the drug for CDI can get to market quickly, but address a limited market. By selling the product, it could produce a steady income stream. That would help to finance the drug for antibiotic-resistant viruses, which could become a blockbuster drug. The strategy helped Sullivan attract $2.3 million in equity financing in the latest round  — $1.8 million from individuals brought together by Bloom Burton, and $500,000 from Innovacorp. Appili supplemented the raise with funding from theAtlantic Canada Opportunities Agency and NRC Irap. “This is a seed round,” said Sullivan. “We’ll be looking to go back to the capital markets in the summer and close another round of financing in the fall.”]]>