Companies Load Up On Magic Bullets

It wouldn't take too much searching to discover that nearly every biotech and pharmaceutical company, large or small, currently has a research program that centers on monoclonal antibodies. According to R. Scott Greer, chairman and CEO of Abgenix Inc., "Every major pharma has something going in the antibody space; so does every large biotech company and a high percentage of small biotechs."
Yet, only 10 years ago, the health care industry had all but abandoned the hope of ever harnessing the power of monoclonals as therapeutic agents. Today, all that's changed. The FDA has approved nine monoclonal antibody-based therapeutics; BLAs on two more have been filed (Coulter Pharmaceutical Inc.'s Bexxar and Tanox Inc.'s anti-IgE antibody); there are at least 60 (perhaps as many as 80) more in some stage of clinical development (early this year, they accounted for a full 16 percent of all biotech drugs in the clinic, according to the PhRMA); and countless numbers are still in the lab.

As well, the number of biotech-biotech and biotech-big pharma alliances that have been forged specifically to develop monoclonal therapies has skyrocketed. (There have been more than 40 therapeutic-based deals so far this year, which are detailed in the charts scattered throughout this article. These do not include agreements covering marketing and sales, diagnostics applications, ex vivo cell therapy or production methods.)


Turn Around
This remarkable turn of events has been powered by stunning scientific advances as well as clinical triumphs. Gone are the dark days of the early 1990s when monoclonals fell into disrepute. At that time, only one antibody-based drug had been awarded the FDA's stamp of approval (Ortho Biotech Inc.'s Orthoclone OKT3 for reversing acute kidney transplant rejection, which was approved in 1986); the next didn't come until late 1994, when the FDA approved Centocor Inc.'s ReoPro for high-risk coronary angioplasty. In between lay a minefield. One clinical trial after another ended up in failure: For one thing, due to their large size, the antibodies often couldn't penetrate tumors. For another, they were composed of mouse proteins. Not surprisingly, humans injected with such foreign proteins mounted antibody responses to them, thus negating any possible therapeutic benefit. And even if the first dose of a mouse antibody did prove effective, repeat administration was out of the question. As well, at the time it was exceedingly expensive to make enough product for therapeutic use.

Antibody Company Partner Focus Of Collaboration Date Responsible For Product Development
Abgenix Abbott Laboratories Fully human Mabs to several of Abbott's disease targets 5/00 Abbott
Abgenix Corixa Therapeutic human Mabs for autoimmune disease, cancer and infectious diseases 3/00 Partners will bid for rights to develop product candidates
Abgenix Gliatech Fully human Mabs to properdin (a complement protein) for use in cardiovascular and inflammatory diseases 1/00 Gliatech
Abgenix Immunex Joint development and commercialization of Abgenix's fully human anti-cancer Ab ABX-EGF (targets EGF receptor; in Phase I clinical trial) 7/00 Joint development
Abgenix ImmunoGen Abgenix gets access to ImmunoGen's maytansinoid tumor-activated prodrug technology for use with its fully human Mabs 9/00 Abgenix
Abgenix Lexicon Genetics Fully human Mabs for knockout mouse-validated drug targets 7/00 Partners each have development rights to equal number of drug candidates
Abgenix Millennium Pharmaceuticals Millennium gets broad access to XenoMouse technology for creating fully human Mabs (unlimited targets) 3/00 (expansion of 7/98 agreement between Abgenix and Millennium BioTherapeutics) Millennium
Abgenix Neuralab (a wholly owned subsidiary of Elan) Fully human Mabs to Neuralab's antigen in field of neurological diseases 1/00 Elan
Abgenix Pfizer Fully human Mabs to Pfizer's antigen targets in oncology (up to 5 targets; Pfizer filed IND on 1st target in 10/00) 2/00 (extension of 12/97 agreement) Pfizer
Abgenix SangStat Medical Development of Abgenix's fully human Mab ABX-CBL (anti-CD147 Mab) for treating steroid-resistant GvHD (in Phase II/III clinical trial) 8/00 Joint development
Abgenix SmithKline Beecham Fully human Mabs to a SmithKline target 5/00 SmithKline Beecham
Applied Molecular Evolution Bio-Management Use of directed evolution technologies to humanize 4 antibodies that inhibit angiogenesis 2/00 University researchers

* This list only includes agreements concerning the discovery and development of therapeutic antibodies. It does not include agreements covering marketing and sales, diagnostics applications, ex vivo cell therapy or production methods.



Never ones to shirk a challenge, biotech companies have come up with ways to alleviate the mouse problem -- either by replacing about half (chimeric) or most (humanized) of the murine amino acids with human ones (although Idec Pharmaceuticals Corp. is also creating primatized monoclonals, which contain monkey sequences) or by producing fully human antibodies in transgenic mice which have been engineered with human antibody genes (instead of their own). Advances in genetic engineering have also led to superior, and much less expensive, methods for producing the large quantities of monoclonals that are needed for therapeutic regimens.


More Magic Bullets
Even so, why have so many biotech and pharma companies jumped on the monoclonal antibody bandwagon again? Because such drugs really are the magic bullets that German physician Paul Erlich dreamed about in the early 1900s: They can be tailored specifically and precisely to kill their targets without harming the normal cells surrounding them. (Erlich, however, was thinking of chemicals, not antibody molecules, that could attack bacterial pathogens.) And monoclonals elicit far fewer side effects than many other drugs (especially when compared to chemotherapy, for instance). Plus, monoclonal drugs are big sellers: In 1999, ReoPro hauled in $447 million, MedImmune Inc.'s Synagis (for RSV infection) reaped $293 million, and Genentech Inc. and Idec Pharmaceuticals' Rituxan (for non-Hodgkin's lymphoma) garnered $279 million. (For details of all nine FDA-approved monoclonal antibody drugs, plus sales figures, see the charts in the Signals article, "The Payoff: Betting On Protein Drugs.") There's another important reason for the current enthusiasm surrounding monoclonal antibodies: "Antibodies are the fastest way to take advantage of discoveries in genomics," explained Abgenix's Greer.

Antibody Company Partner Focus Of Collaboration Date Responsible For Product Development
Cambridge Antibody Technology Genzyme Development of CAT's fully human Mabs to TGF-beta for diffuse scleroderma and all other indications (excluding ophthalmology); CAT-192 completed Phase I trial; will also develop Genzyme's TGF-beta Ab 1D11 9/00 Genzyme
Cambridge Antibody Technology Human Genome Sciences Unlimited use of CAT's phage display technology to make fully human Mabs to Human Genome Science's genomics-based targets 2/00 Each partner will develop some products on its own behalf as well as conduct joint development on others
Cambridge Antibody Technology Wyeth-Ayerst Research (unit of American Home Products) Use of CAT's phage display technology to develop fully human Mabs to amyloid beta peptide for treating Alzheimer's disease (as part of Elan-Wyeth-Ayerst 4/00 alliance) 9/00 (original agreement from 3/99) Wyeth-Ayerst
Elan Biogen Development of humanized Mab Antegren for MS (currently in Phase II trials) and Crohn's disease 8/00 Joint development
Eos Biotechnology Biogen Use of Eos' gene expression databases to identify targets for Ab and protein therapeutics for breast cancer; Eos has option to produce fully human therapeutic Mabs against validated targets 9/00 Biogen
Medarex Athersys Combination of HuMAb-Mouse technology and RAGE technology (functional genomics; proteomics) to create fully human Mabs to 10 of Athersys' targets in cancer and other diseases 8/00 Joint development
Medarex Biosite Diagnostics Combination of HuMAb-Mouse technology and Omniclonal phage display technology to create Trans-Phage Technology for high-throughput Ab production for drug discovery 6/00 Medarex (via 3rd parties); Biosite gets diagnostic rights
Medarex Centocor (subsidiary of Johnson & Johnson) Fully human Mabs (HuMAb-Mouse technology) to an unlimited number of Centocor's (or other J&J units') targets (undisclosed) 5/00 Centocor
Medarex Corixa Fully human Mabs (HuMAb-Mouse technology) to Corixa's target antigens in autoimmune disease, cancer and infectious disease 6/00 Partners will bid for rights to develop product candidates
Medarex Coulter Pharmaceuticals Fully human Mabs (HuMAb-Mouse technology) to Coulter's target antigens in cancer and autoimmune diseases 4/00 Coulter
Medarex Eos Biotechnology Fully human Mabs (HuMAb-Mouse technology) to Eos' genomics-derived targets in cancer 2/00 Eos to develop through Phase IIa clinical trials but partners will jointly own 6-9 of these product candidates
Medarex Immuno-Designed Molecules (IDM) IDM will acquire rights to certain of Medarex's therapeutic products and technology (to be used with IDM's MAK cell technology); IDM also gets access to HuMAb-Mouse technology 2/00 (original agreement from 12/99) IDM
Medarex Kirin Combination of HuMAb-Mouse technology and Kirin's Transchromosomic Mouse technology to develop fully human Mabs (technology will be licensed) 1/00 N/A
Medarex MedImmune Fully human Mabs (HuMAb-Mouse technology) to MedImmune's RSV target 6/00 MedImmune
Medarex Oxford GlycoSciences Fully human Mabs (HuMAb-Mouse technology) to OGS' proteomics-generated targets in cancer and other diseases 9/00 Joint development
Medarex Raven Biotechnologies Fully human Mabs (HuMAb-Mouse technology) to Raven's targets (stem cell surface antigens) in cancer and other diseases 3/00 Raven Biotechnologies (or 3rd parties)
Medarex Regeneron Pharmaceuticals Fully human Mabs (HuMAb-mouse technology) to Regeneron's targets (more than 20 initially; include growth factors, cytokines and receptors) 3/00 Joint development
MedImmune Alkermes Inhalable Mab for RSV via Alkermes' pulmonary drug delivery technology 6/00 MedImmune

* This list only includes agreements concerning the discovery and development of therapeutic antibodies. It does not include agreements covering marketing and sales, diagnostics applications, ex vivo cell therapy or production methods.


Today, the vast majority of companies developing monoclonal-based therapeutics are focused on creating fully human molecules. Yet, not one fully human antibody drug has made it all the way through the regulatory process. (All nine that have been approved are either murine, chimeric or humanized.) That's not because some have tried and failed but rather because the technology for creating fully human antibodies is still so new. There are about eight such potential drugs now in the clinic, according to Greer. It wasn't until February of this year that the first fully human monoclonal entered Phase III trials. That product, BASF Pharma's anti-TNF antibody D2E7 for treating rheumatoid arthritis, was initially isolated and optimized as part of a research collaboration with Cambridge Antibody Technology plc.

Consequently, it's not clear yet whether fully human antibodies will, in the end, offer any significant advantage over their mousy counterparts. Companies that are already heavily invested in murine antibodies are making efforts to humanize them. (For instance, refer to the charts in this article to see the many firms that have licensed Protein Design Labs Inc.'s humanization technology this year.) Companies that are starting from scratch, however, all seem to be placing their bets on fully human products. (Again, check the charts for the deals that Abgenix Inc. and Medarex Inc., in particular, have signed this year.)


New Targets
A quick scan of the alliances detailed in the charts in this article will make it quite clear that many target-discovery companies do, indeed, feel that antibodies may be the quickest way to capitalize on their discoveries. And, in concert with the wealth of new drug development targets being spawned by genomics research, there are now more ways to generate antibodies to them. The use of bacterial viruses (in a technique called phage display) to generate combinatorial libraries of antibodies rapidly has become increasingly popular.

And start-up Raven biotechnologies inc., based in San Carlos, CA, has devised yet another approach which not only is able to identify new targets but also is capable of generating monoclonals. The company has developed 10 human disease- and organ-specific progenitor stem cell lines, which it uses as immunogens to generate libraries of monoclonals to cell surface proteins (antigens). Since these are progenitor cells, many of their surface proteins will not be expressed in the mature organs they go to form -- but they can get turned on again if malignancy sets in. Raven's monoclonals can potentially be used as therapeutics in their own right, but they're also helpful in probing the expression or function of the targeted antigen or even purifying it.

"Right now we're screening for five different cancers," explained Jennie Mather, Raven's founder and CEO. "We screen the antibodies [in the generated library] to see what's unique. We don't identify what genes are involved until we've narrowed them down from thousands to two or three" that are relevant for the disease. The library of antibodies can be prioritized by checking their reactivity with normal and diseased human tissue samples; what results is a small number of physiologically relevant antibodies.

Although Raven has developed its own, in vitro technology for producing human monoclonals, on which it filed a patent application late last year, "We're mainly a target discovery company," Mather explained. Raven is certainly not averse to exploring the utility of other technologies for generating human monoclonals. "No one technology is good for everything," Mather explained. In fact, Raven's already using Medarex's HuMAb-Mouse technology for producing fully human antibodies against certain of its cell surface antigens, with an initial focus on ovarian cancer. This is only the first of several alliances, said Mather: Although she couldn't provide the specifics, a number of deals are in the works, with both biotech firms and big pharmas.


Pick Your Partner
Medarex has signed 12 therapeutic-based alliances this year. So has Abgenix, the other major player in fully human antibody technology, Two of Abgenix's alliances are expansions of earlier agreements; one (not listed in the table) is for the production of one of Abgenix's antibodies in transgenic animals; and four are licensing deals. But five involve true collaborations in product development. The first of these, with Immunex Corp., signaled the beginning of an evolution in Abgenix's business development strategy, explained chairman and CEO Greer. The company still inks straight licensing deals, but is also moving towards profit-sharing arrangements. And those come in two varieties: One is based on the partner's targets. "Companies that are target-wealthy, like Corixa, need access to XenoMouse [for making antibodies]. And, Abgenix needs the targets. We scratch each other's back," Greer said. In these deals, "we often add a co-development twist," he continued. The deal with Human Genome Sciences (which was signed in December 1999) is a good example; the partners will jointly pick and jointly develop a certain number of targets.

The other profit-sharing deals are based on Abgenix's own product pipeline. "We are the source of the target and we will bring it into the clinic. We also retain a significant economic interest in the product " by retaining the rights through early clinical trials (as far as Phase II) before seeking a partner, Greer said.

Antibody Company Partner Focus Of Collaboration Date Responsible For Product Development
MorphoSys Eos Biotechnology Eos licensed HuCAL-Fab technology for use in target validation and proteomics research 6/00 Eos has option to develop therapeutics
MorphoSys Genentech MorphoSys licensed Genentech's patents on monovalent phage display screening technology (which it can sublicense in conjunction with its HuCAL-Fab technology) 5/00 N/A
MorphoSys ImmunoGen Therapeutic human Mabs (HuCAL-Fab technology) to ImmunoGen's target (cell surface antigen associated with many cancers) 10/00 ImmunoGen
MorphoSys Millennium Pharmaceuticals Therapeutic human Mabs (HuCAL-Fab technology) for inflammatory and autoimmune disorders (Abs will target chemokine receptors and integrins) 3/00 (expansion of 8/98 agreement between LeukoSite [since acquired by Millennium] and MorphoSys) Millennium
MorphoSys ProCHon Biotech Therapeutic human Mabs (HuCAL-Fab technology) to ProCHon's target (human growth factor receptor associated with skeletal disorders and certain cancers) 5/00 ProCHon
MorphoSys Roche Therapeutic human Mabs (HuCAL-Fab technology) to Roche's biological target associated with Alzheimer's disease 9/00 Roche
Protein Design Labs Chugai Pharmaceutical Chugai licensed Ab humanization technology for undisclosed number of targets; an Ab to 1 of these targets, human IL-6 receptor, is in clinical trials for rheumatoid arthritis 5/00 Chugai
Protein Design Labs Eli Lilly PDL will humanize 1 or more murine Mabs of Lilly's for undisclosed targets 9/00 (2 agreements) Lilly
Protein Design Labs Fujisawa Pharmaceutical PDL will humanize a Fujisawa Mab for use in inflammatory and immunologically mediated diseases 2/00 Fujisawa
Protein Design Labs Merck KGaA Merck licensed Ab humanization technology for Abs to the EGF receptor (as cancer therapeutic) 4/00 Merck
Protein Design Labs Tanox Tanox licensed Ab humanization technology for up to 4 Tanox Abs 4/00 Tanox
Protein Design Labs Toagosei Development of SMART anti-VEGF humanized Ab for treating cancer (Phase I initiated in Europe 1/00) 5/00 (original agreement on Toagosei's Ab from 7/99) Protein Design Labs
UroGenesys Inc. Genentech Inc. Use of UroGenesys' Prostate Stem Cell Antigen (PSCA) as target for Ab therapeutics for cancer 7/00 Genentech

* This list only includes agreements concerning the discovery and development of therapeutic antibodies. It does not include agreements covering marketing and sales, diagnostics applications, ex vivo cell therapy or production methods.


Abgenix's deal with Immunex concerns one of those proprietary products, ABX-EGF, a fully human monoclonal for treating cancer. Its deal with SangStat Medical Corp. covers another, ABX-CBL for treating steroid-resistant graft vs. host disease (GvHD). "We feel we picked the right partners for these products. We didn't even talk to big pharma about ABX-CBL," Greer said. The market size for GvHD is too small to be of any interest to those companies. But "it's very important to SangStat. They know the space inside and out. Plus, they already have a product for GvHD."

"EGF is a different story. The clinical trials [in oncology] are not as large as they would be in inflammatory disease, so we didn't necessarily need financial or clinical/regulatory muscle [in a partner]," Greer continued. In this instance, however, Abgenix did hold partnering discussions with big pharmas, as well as some major biotech companies that already had an oncology presence and had also demonstrated success in getting one or more products to market. Immunex won out. "Immunex is aggressively trying to build an oncology franchise. It's got products on the market, but lacked one in the clinic," Greer said.

Abgenix's third product candidate, ABX-IL8 for treating psoriasis and rheumatoid arthritis, is not yet partnered. "We are just wrapping up the Phase II psoriasis trial now, and will release the preliminary results very early next year," Greer said. "In our view, [the value of] that product will go up dramatically if we see positive results." And then Abgenix will bring in a partner: For the very large Phase III trials that will be required for either indication, it will need the assistance of a large pharma or biotech company.

These alliances may differ in their particulars, but Abgenix's goals are the same in each: To "get a piece of the action" in terms of profit sharing and "to stay involved with the drug to make sure that it moves [through the clinic] as quickly as possible," Greer explained. "If the product is strategically important [to the partner] then it will get the level of attention we think it deserves."

That's good advice for any biotech company looking for a development partner for a product candidate.

By Jennifer Van Brunt-Editor



originally published 10/20/2000


Copyright © 2012. Signals (signalsmag.com) is an online magazine of analysis for biotechnology executives. To contact the Signals editorial department, send e-mail to signals_edit@deloitte.com. Signals is published by: Recap, 2033 N Main Street, Suite 1050 , Walnut Creek, California 94596-3722, Phone: (925) 952-3870