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Biotech


ALL TAKEDA WANTS FOR ITS BILLION-DOLLAR GENE THERAPY SPENDING SPREE IS
FUNCTIONAL CURES

By Annalee ArmstrongMay 4, 2022 08:00am
Takedabiotech dealsgene therapyLicensing deals
Madhu Natarajan draws the start of his puzzle back to March 2020, when Takeda
announced a deal with protein engineering company Codexis.
(PeopleImages/iStock/Getty Images Plus)

All Takeda is trying to do with its billions-of-dollars worth of licensing deals
in gene therapy is cure rare disease. Simple, right?



Madhu Natarajan, head of Takeda’s Rare Disease Drug Discovery unit, knows that
to many, cure is a “four-letter word.”

“It's very hard to demonstrate a cure, but my sentiment is that should not
prevent you from aspiring towards building a cure,” Natarajan, who came into
Takeda through the 2019 Shire acquisition, said in an interview with Fierce
Biotech.



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This drive for a cure is all in how Takeda defines the word. If a patient can
take a therapy—whether once or for the rest of their lives—and achieve a
relatively normal state of health without any new symptoms developing, that is a
functional cure to Natarajan. And that’s what Takeda is hoping to achieve with a
recent spate of deals in gene therapy.


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Takeda's gene therapy hunger not yet quelled as Evozyne pact extended for $400M
in biobucks

The most recent was a $400 million biobucks collaboration with Evozyne in rare
diseases signed in early April. This followed an earlier tie-up between the two
companies, signed in January 2021, on genetic disorders and lysosomal storage
diseases, which are inherited metabolic disorders that cause certain substances
to build up in the body and cause problems. But that was a small agreement
compared to Takeda’s other recent moves: $2 billion in milestones for Code Bio;
$3.6 billion including $45 million upfront for Poseida Therapeutics; and $1.12
billion for Selecta Biosciences.

While these seems like a lot of disparate moves, Natarajan said each company
lends its piece to the larger gene therapy puzzle that Takeda is trying to
assemble.




“We will stitch together an ensemble of technologies, which cumulatively will
bring about this best-in-class gene therapy,” he said.

Natarajan said the project is aimed at lysosomal storage diseases, hematology
and metabolic disorders, focusing on unmet medical needs. Right now, the
particular indications that will move into the clinic are yet to be determined.

The goal is not necessarily to create one-and-done therapies, which have been
all the rage in gene therapy lately.


"PLAY NICE"

Natarajan pegs the start of his puzzle back to March 2020, when Takeda announced
a deal with protein engineering company Codexis. No financial details were
disclosed, but the companies agreed to work on up to seven targets in lysosomal
storage disorders and blood factor deficiencies. The deal was extended, again
with no dollar amounts revealed, in June 2021. Other companies involved include
Ensoma, Immusoft and Genevant Sciences. 

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RELATED

Takeda's gene therapy ambitions rise another $2B in 4-program Code Bio pact

The overarching goal has been to secure the best possible technology for each
piece needed to build a gene therapy, which essentially replace or add a gene to
fix an underlying medical problem. The first piece is to build a better
transgene, which is the genetic material to be delivered. Then, Takeda is
working on the gene cassette that holds the gene plus a DNA sequence called
promoter enhancement technology that helps the body understand and express the
new gene. The final element is the delivery technology that packages the whole
thing up to be administered.

“I would love to say that everything works in a carefully orchestrated plan,”
Natarajan said. “But suffice to say that we had an initial sequence of events
which allowed us to get started. And then as we expanded, this is where the
learnings came in.”

Takeda now thinks it has a collection of companies that can build a
best-in-class gene therapy program. Many biotechs claim to be the best at one
technology or the other. But Natarajan said another important factor when going
through the dealmaking process was that the leadership teams, scientists and
everyone involved could get along well with others.

“Everyone believes that they have it in them to be a one-stop shop to do
everything, or that their technology is good enough for them to build a gene
therapy,” Natarajan said. “We probed them to see how many of them see the big
picture, which is the vision that, are you willing to be a partner in a larger
consortium?”


RELATED

Billions club: Takeda taps Poseida for 2nd $1B-plus gene therapy pact in 2 weeks

Finding the perfect biotechs to fit those criteria was not easy; as Natarajan
said, “that calls for a special breed of companies.” But Takeda’s internal
researchers, who will oversee the project from the top down, believe they have
found their crew.

“They checked off every box on the technology component, as well as the
collegial component if you will, in terms of how they are willing to play nice,”
he said.

So, is the team complete?

“Until such time that I am able to show phase 1 data, where things are proof
positive, I will always have a wish list,” Natarajan said.


RELATED

Takeda taps Selecta for $1.1B gene therapy research pact

Right now, the group has the components to do just that—with a read-out “a lot
closer” than five years away, maybe one to two years from now.

But as Natarajan and his teams learn more, they may consider adding additional
deals, targets or companies. He said the flurry of deal announcements over the
past 12 to 18 months was simply an indication that they were in the build stage;
now, the project is moving into the growth phase.

“As we get closer to a steady state, I don't anticipate a large bolus of deals.
But I do anticipate that based on the learnings that we have with some of these
deals, we may choose to augment or we may choose to replace,” Natarajan said.

The biotechs also get the benefit of working with a well-established
pharmaceutical partner with the clinical trial experience and expertise to move
through the cumbersome, laborious drug development process.


RELATED

Ensoma debuts with $70M, Takeda deal to pursue off-the-shelf genomic medicines

Natarajan credits his internal researchers for being able to work with such a
large group of outside scientists toward one common goal. His team is designing
everything, from what experiments get done to which programs advance.

“If I did not have the internal expertise that I have, pulling off this model
that we have set up would be absolute madness. I just couldn't do it,” Natarajan
said. “Takeda internal research is just as strong a collaboration partner and
honestly is the glue that keeps all of these collaboration pieces together.”

Biotechrare diseasesCell & Gene Therapylysosomal storage disordershematology

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