Innovation Report

 
report Life Sciences

“Our business is the most beautiful business in the world”

04.09.2018

Giacomo di Nepi has a successful history: A high level executive in big corporations, he transitioned towards biotech, currently as CEO of Polyphor, which, in May 2018, he led to the IPO. We spoke to Giacomo about serving patients, the timing for an IPO and the people needed in a biotech.

BaselArea.swiss: What do you check first these days – your emails or the stock market?

Giacomo di Nepi: Emails and meetings are still more important on a daily basis. Of course I check the stock market but the volatility is such that I stopped to try to interpret the market in the short term. But of course I look at it in its development and my commitment is clear to have the stock appreciating and increasing the value delivered to the shareholders who put their trust and investment in our ideas, technology and team.

You served in big corporations such as McKinsey and Novartis. What made you join a startup like Polyphor?

Sure, I come from multinationals, but I worked elsewhere, too. My last job was with InterMune, a Californian biotech. I started the operations in Europe from zero, from my home. If the weather was nice, we moved our meetings from the dining room into the garden. This grew into an operation of 200 people, bringing the drug to the patients affected by idiopathic pulmonary fibrosis. With a startup, you have the possibility of looking at all the dimensions of a company from a much broader perspective. Therefore, Polyphor was attractive for me, but there were other reasons, too.

Such as…?

… the dramatically fantastic science which certainly is one of the fundamentals. Polyphor is a company that has discovered the first new class of antibiotics against Gram-negative bacteria in the last 50 years. This is radical innovation. Antimicrobial resistance is becoming a huge problem. You have patients that get an infection, then are treated with 20 different drugs and they die nevertheless. This is unacceptable. Pneumonia from Pseudomonas aeruginosa today has a mortality rate of 30 to 40 percent. Also, when a woman has metastatic breast cancer and is in her third line of chemotherapy,  she has very few therapeutic options and her prognosis is devastating. We want to save lives and give more time to patients. This is what for me makes our business the most beautiful business in the world. It is heartbreaking to see these patients.

So you meet with patients?

Sure. Lately, I brought a patient to Polyphor: A fantastic woman with colonization of Pseudomonas took part in the earlier trials. She has great courage and a willingness to fight for life that is really moving and inspiring for all of us. She talked about her experience because I believe that everybody should have a touch of feeling of what we are trying to achieve, such as people not directly involved in development, for example working in units such as in accounting who normally only see the invoices for the trial.

Polyphor underwent a transformation from research to R&D focused biopharma company in the last couple of years. How did the organization digest the change?

When you move from one stage to the next stage, you raise the bar because in development, projects are multi-year, complex projects with big expenditure. It really changes the mindset. Personally, I like change. I am not interested in doing administration. And this particular change was necessary. This being said, we still have a big research operation focused on antibiotics and immuno-oncology, that we want to keep to find and build excellent compounds.

Basel seems to have become a hotspot for antibiotics recently.

Antibiotics have been disregarded by many large companies. But it is like in the Pascal law: if there is an empty space, something will fill it. Smaller, entrepreneurial companies are now taking the lead worldwide – and Basel is one of the key spots. Clearly, we have a very strong science base in Basel. If you want to do R&D, Basel is the best place to do it, in my opinion. And, I would not be surprised if large companies will be back….

Polyphor listed on SIX Swiss Exchange in May 2018 and raised 165 million Swiss francs. Why was an IPO the right option for Polyphor?

If you are lucky, you find a biotech with one product that is one step away from the market. We have two products that are one step away from the market: Our antibiotic Murepavadin has entered phase III while we negotiated a program with the FDA to bring our immune-oncology drug Balixafortide to the market with only one pivotal study. That puts us in a unique position. However, these studies required a lof of capital. Thanks to going public, we have the resources to develop our products and, when successful, bring them to the patients who need them. The IPO was a necessary tool given the stage of the company.

Which conditions had to be met for the IPO?

An IPO is an interesting exercise. It’s a bit like undergoing a complete physical examination. The investors don’t know the company, yet we want them to support our ideas, our vision and our team. That means they need to trust us. To gain that trust you have to be completely transparent and explain in every detail what the company is about, what the opportunities and risks are. In the end, the results were fantastic because we’ve been the largest biotech IPO in Switzerland within the last ten years. And, we’ve been one of the top 3 in Europe in the last three years.

How influential was the timing?

Timing is important, but it is not determining. The first quarter of 2018 was very good for IPOs but the second quarter was not stellar. A dozen IPOs were pulled during that period. It may happen that you have a valid IPO but don’t do it because the timing is wrong. However, you never have a non-valid IPO that you do because the timing is right.

Which reactions did you get towards Polyphor’s IPO?

Internally, we are super happy that we can work towards bringing our drugs to the patients. At the same time, we are very conscious of the responsibility and very committed. Externally, our IPO is a demonstration of the capability Switzerland and particularly the Basel area have in pharmaceuticals. The IPO was a moment of visibility, of public recognition. In a way, an IPO shows how investment-intensive this business is. I hope it’s a good sign for the whole industry that we are capable of starting new companies, making them flourish and bringing new therapies to the patients.

Why did you choose the Swiss Exchange?

We already had quite a large shareholder base in Switzerland, so it was natural to go to the Swiss stock market. We were a known entity. Switzerland is a fantastic market, I am happy with the choice. In fact, I wonder why it is not chosen more often. There are available funds, there are investors that are familiar with pharmaceuticals and that are willing to take the risk.

What are the plans for Polyphor for the next couple of years?

Our vision is clear: We want to become a leader in antibiotics and help fighting and reducing the threat that comes from multi drug resistant pathogens. At the same time we want to advance a new class of immune oncology drugs. We are developing third line therapies for metastatic breast cancer. The women affected by this have very few therapeutic options. However, we believe that the potential of the drug can go beyond this patient population, for example in earlier lines of breast cancer and to other combinations and indications. This would bring us to a much more competitive field.

How do you get there?

We have to make sure that we have the organization and the culture that allow us to perform our studies effectively. We want to make sure that the pieces of the organizational machinery are in the right order and that we have all the competences that we need.

What do you do to achieve this?

I recognize talent as one – if not the – key component of success for a company. Consequently, I dedicate a lot of effort and a lot of commitment to do this task. I interview candidates two or three times, I don’t mind. I also have them interviewed by their future colleagues. When I was at Novartis, I had fantastic experiences with the young high potential. Why? Because they have the brains and the capability. It doesn’t matter if they have little experience because the rest of the organization is stuffed with it. It is different in biotech where you absolutely depend on hiring people with relevant experience since no one else has it in the company.

And how about the cultural changes when transitioning from big pharma into a biotech?

Experience, however, is only part of the story. I met a lot of people who have experience – but are not able of making a photocopy and need three people reporting to them in order to be able to achieve anything. They are not good either. That is why I look for a sort of “schizophrenic profile”: In biotech you need people who have experience, capability and vision while at the same time they need to roll up their sleeves, be practical about their choices and do things on their own.

Interview: Annett Altvater and Stephan Emmerth

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Basel pharma companies invest most in R&D

15.07.2018

The 24 Interpharma companies spent a total of 96 billion Swiss francs on research and development worldwide in 2017. Of this, 7 billion francs were invested in Switzerland. When compared with the sales they generated in Switzerland, the companies’ Swiss research investment was more than twice as high. According to the association, this is a testament to the great significance of Switzerland as a research location and the innovation taking place at these companies.

Investment in research and development has been especially high among companies that have their headquarters in Switzerland, such as Roche and Novartis.

Interpharma highlights the key role the pharma industry in the Swiss export sector plays. The association also notes that more than 86 patents were registered per million employees in pharmaceutical research in Switzerland between 2012 and 2016. This is more than double the number of Denmark and five times as many as in Germany.

Among the Interpharma members are companies such as Novartis, Roche, Pfizer, Astra Zeneca, Sanofi, Lilly, Johnson & Johnson, Bayer or GlaxoSmithKline.

Investments in the future

How committed the life science companies are to Basel is also reflected with regard to their planned investments which is as high as 6 billion Swiss francs. Roche, for instance, is in the process of renewing its Basel and Kaiseraugst sites. By 2023, the company with the long heritage in Basel will have invested 3 billion Swiss francs into their infrastructure. Some buildings are being modernized, while others are rebuilt completely. Bau 1, with 178 meters the tallest building in Switzerland, was opened in 2015 and cost 550 million Swiss Francs.

The remarkable tower that was designed by world-class architects Herzog & de Meuron from Basel provides workspace for approximately 2000 employees. Meanwhile, the big brother is under construction: Bau 2 will be 205 meters high and provide space for approximately 1700 employees. At the Kaiseraugst site, the group constructs an IT hub to gather all IT functions under one roof whilst taking the strategic role of technology and the growing numbers of IT employees into account. Roche will invest more than half a billion Swiss francs in Kaiseraugst.

More investments are under way in Basel:

The Swiss Tropical and Public Health Institute invests 90 millions Swiss francs in their new building in Allschwil, providing 900 workspaces. The new building is due in late 2020.

The Biozentrum of the University of Basel constructs a site for students and researchers, spending 328 million Swiss francs. Further, the University builds a Life Sciences Campus, concentrating different disciplines in one location to foster collaboration. The Department of Biosystems Science and Engineering of the ETH is also part of the project.
The University Hospital of Basel will realize a new building by 2032, costing approximately 1,2 billion Swiss francs. In 2017, the hospital opened new state-of-the-art surgery facilities.

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Le Jura sur la liaison ferroviaire internationale Bienne-Belfort

04.12.2018

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BaselArea.swiss welcomes CMAB to Basel

03.12.2018

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Basel has the biggest economic potential

13.07.2018

Basel has the biggest economic potential in Europe, according to a new study from BAK Economics. The city on the bend of the Rhine ranked particularly well for competitiveness, while Geneva and Zurich also came in the top five.

BAK Economics has published a study on the economic potential of the 65 most important cities and 181 regions in Europe. Its findings revealed that Switzerland’s cities and regions are among the best in the Economic Potential Index.

Basel scooped 116 points to take the top spot. A key factor in its success was its pole position for competitiveness with 124 points. For attractiveness, the city on the bend of the Rhine took third place with 109 points, and for economic performance it ranked equally high with 114 points.

Geneva followed in second place with 115 points among the cities with the highest economic potential. London took third with 113 points and Zurich fourth with 112 points. The city on the Limmat was also named the most attractive of all 65 cities studied.  

On a regional level, Basel was considered part of north-west Switzerland, which ranked fourth with 111 points. For competitiveness, it came second with 117 points, behind the Stockholm capital region with 122 points.

For best regions overall, Zurich was named third with 112 points behind London in second and Stockholm in first place. However, the Swiss regions have the greatest overall economic potential in Europe: the Lake Geneva region ranked sixth, Central Switzerland seventh, and Ticino eighth, with the Swiss regions occupying half of the top ten places.  

report Life Sciences

GETEC acquires Infrapark Baselland

20.11.2018

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Baselland increases startup support

15.11.2018

report Life Sciences

“Basel has all the ingredients required to host a successful company”

11.06.2018

The physician and pharmacologist Nicole Onetto is a member of the Board of Directors at the Basilea Pharmaceutica AG. In the Interview that was featured in Basilea’s annual report she talks about current challenges in oncology.

Great strides are being made in the long-term treatment of oncology patients. As an oncology expert, what do you find to be the most important advancements in the industry?

Nicole Onetto: We see spectacular results in terms of long-term survival in quite a few diseases where, less than ten years ago, there were no new treatments available. And for many forms of cancer, where previously we had only access to traditional therapies such as surgery, radiation therapy and chemotherapy, we have been able to take advantage of the new molecular understanding of cancer to personalize the treatment for each patient. This has facilitated the development and the utilization of targeted therapies associated with superior efficacy and reduced toxicity compared to traditional treatments. Finally, in the last few years, we have been able to harness the potential of the immune system to develop new therapeutic approaches which stimulate our own immune defenses to control cancer growth.

What do you see as the next major treatment improvements that may be achieved in the short and mid-term?

Definitely the further development of immune therapies for cancer patients seems more and more important. These new modalities will need to find the right place in the management of patients and will have to be used in combination with more traditional therapies. The cost-effectiveness of these innovative technologies will also need to be evaluated. Another very important topic will be minimizing toxicity of treatments and avoiding over-treatment.

How can companies succeed in clinical development?

With a more personalized approach to cancer treatment, new opportunities do exist to develop drugs associated with high efficacy in well-defined patient populations. However, drug development will always require patience, perseverance and scientific rigor. Many challenges still remain in treating cancer patients, despite the important progress that has been made. Among others issues, drug resistance is a significant hurdle and continues to be in the focus of Basilea. For patients with resistant diseases, not so long ago, the only possible approach was to change to a new drug, often a new chemotherapy. Now we have gained more insight into the mechanisms of resistance. In addition, many researchers all over the world are investigating the best ways to circumvent treatment resistance. Other important factors are collaborations between academia and the private sector such as companies like Basilea, to develop new innovative drugs to benefit patients.

How can this be supported?

The use of biomarkers to help choose the most appropriate treatment regimen and to select the patients with the highest probability of response to treatment has and will continue to have a major impact on the development of new cancer agents. Biomarker data are key to the design of development plans of new drugs and to go/no go decisions. These data are now often incorporated in the approval process and subsequent commercialization of new drugs. This approach, based on scientific evidence to select new drugs, is one of the major advances that are currently transforming the research and development process as well as clinical study methodology.

Do you see advantages for Basilea being located in Basel?

Basel has all the ingredients required to host a successful company: a vibrant research community, an international reputation of excellence in the pharma industry, a pool of talented people and a strong and stable economy. Basel is a leading life-science hub with the presence of an excellent university, the headquarters of established large pharmaceutical companies and many start-ups and innovative ventures. There are many similarities between Basel and the few well established biotechnology hubs in Europe and North America. This favorable environment has already helped Basilea build a very strong company and should continue to support its further success. So I am delighted to have been elected by Basilea’s shareholders as a member of the board and look forward to playing an active role in the Basel biotech community.

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Exciting development projects in the Basel Area

25.10.2018

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How Baloise makes best use of Blockchain

23.10.2018

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"We will not shy away from taking risks"

05.06.2018

In 2016, Roivant Sciences established their global headquarters in Basel. Roivant founder and CEO Vivek Ramaswamy talked to us about his fast growing company, his priorities for the company and about the role that Roivant aims to play in the Basel life sciences ecosystem.

BaselArea.swiss: You built a company from scratch. What are the crucial ingredients?

Vivek Ramaswamy: In biotech you need three main ingredients to build a great company: good drugs, good people, and sufficient capital. Of course, it is difficult to know which drugs will succeed or fail in advance of conducting clinical research so I started Roivant with the vision of having a broad portfolio—a company whose success would be measured by the number and the quality of the medicines that we deliver to market, but at the same time a company that would not be defined by the success or failure of any given drug. It is my belief that the long term success of the company will be driven by the quality of our people and our cultural principles which include a singular focus on value creation and a commitment to innovation throughout all aspects of our business. This is an expensive and risky industry where you have to invest heavily before you know the eventual result and I am very grateful for the backing of our investors. But at the end of the day, the money we’ve raised is not an accomplishment, it is just an ingredient.

Roivant has grown rapidly. How do you maintain an entrepreneurial spirit within the company?

Maintaining an entrepreneurial mindset is core to our model. Our company is based on the principle that smaller tends to be better which is why we did not organize Roivant as a single, centralized, command-and-control operation. Instead we scale our business through the creation of wholly- or majority-owned subsidiary companies, which we call “Vants.” We now have over 600 employees across our family of companies, and it is fair to say that preserving that initial entrepreneurial mindset is one of my main priorities going forward.

How free are the Vants in finding their own version of entrepreneurial spirit?

Think of Roivant as a parent that contributes DNA to each of our Vants. We also carefully select leaders who contribute their own DNA. Each Vant resembles Roivant heavily but also has its own unique genotype. There are common cultural principles, but there are also important distinctive features and we see that heterogeneity as a comparative advantage.

How do you cope with failure?

We are fortunate that relatively early in our history we have experienced both success and failure. We would not be doing our job if we had only a string of successes insomuch as that would indicate we are not taking sufficient risk to benefit patients. We cope with failure in three ways. First, we acknowledge it as a necessary consequence of our broader strategy. Second, we build a diverse portfolio rather than predicate the success of our business on any single drug. Finally, we own our failures openly and use them as an opportunity to learn. When our drug for Alzheimer’s disease intepirdine failed in phase III, we did not obfuscate or sugarcoat the news. But we also did not overreact and we will not shy away in the future from taking risks in similar areas of significant unmet need. Instead we will embrace the risk of failure as we make calculated decisions across all therapeutic areas.

You chose Basel for setting up your global headquarters. Which aspects did you find most convincing about the location?

It starts with the talent. We believe in diversity of talent and we recruit from both within and beyond pharma. Basel is emblematic in that sense because it brings together a very diverse talent pool from multiple countries and cultures, speaking different languages with varied experiences and educational backgrounds. That mixture makes for a warm, welcoming, and innovative environment which mirrors the culture we seek to build internally at Roivant. At the same time, the legacy of successful pharmaceutical products being developed here makes Basel a place where we wanted to plant a seed early in the life of our company. In addition to the large multinational companies for which Basel is best known there is also a strong scene of young and vibrant companies building on that tradition, and we hope to be at the center of that.

How did Roivant accommodate in Basel for the time being – were your expectations met?

Yes, except in one aspect: Basel does not seem to believe in air conditioning! Joking aside, our expectations were in many ways exceeded. I have found the community to be very welcoming, and we immediately felt at home here. We have been able to recruit talent very effectively, and we have engaged in positive dialogue with several companies in the area. We continue to source new asset opportunities in the region, and we are delighted with how this ecosystem has embraced us and allowed us to thrive. The partnerships we have forged in the region are crucial for us, not least with partners like BaselArea.swiss and its BaseLaunch accelerator program.

We are happy to have you. How do you contribute to the accelerator?

Our business model is to accelerate the launch of new companies in our family so it’s only logical that we would be part of BaseLaunch. We can use our expertise to help other companies accelerate their own launches and scale their businesses. We support BaseLaunch in the process of selecting new projects and we offer advice and mentorship. For us, it is a great way to signal our support for the local startup scene and develop our relationships with other companies in Basel. We are happy to be a part of that.

What are the prospects for the headquarters in Basel?

The short answer is we will grow further. All of the Vants will use Basel as a business hub to develop and maintain partnerships within Europe. We started out as a company focusing on shelved drugs. But we are also keen to accelerate drug development in other companies’ pipelines. Basel is a great place to do that with companies in Europe and its vicinity.

Interview: Annett Altvater

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Baselbieter Arbeitsmarkt- und Wirtschaftsforum 2018 Technologie@BL

22.10.2018

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Animal health manufacturer Zoetis makes Delémont its Swiss headquarters

22.10.2018

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Meet the BaseLaunch Startups

11.03.2018

Six of the BaseLaunch startups recently started Phase II. They received either grants up to 250,000 Swiss francs or gained free of charge access to BaseLaunch laboratory and office space at the Switzerland Innovation Park Basel Area. Hear what the startups, the BaseLaunch team and selection committee members experienced in the first year. Find out more about what makes BaseLaunch unique.

The BaseLaunch accelerator is now open for applications for the second cycle. Entrepreneurs with a healthcare based project or a game-changing innovation in diagnostics, medtech or related field at the pre-seed or seed funding stage are invited to submit their applications to the program.

Following the application deadline on 14 May, promising projects will be admitted to the accelerator program for a period of 15 months. In phase I, the startups will benefit from the support of industry experts, office- and laboratory space free of charge and access to healthcare partners. After three months, they will be invited to present their idea to the selection committee. They will determine which promising startups will proceed to Phase II that runs for one year.

BaseLaunch is backed by five industry leaders — Johnson & Johnson Innovation, Novartis Venture Fund, Pfizer, Roche and Roivant Sciences. Other public and private partners such as KPMG and Vossius & Partner also support the initiative.

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New campus strengthens bi-cantonal partnership

18.10.2018

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15.10.2018

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Spirochem opens new state-­of-­the-­art Services and R&D facilities in Basel

29.09.2017

Basel – The fine chemicals company SpiroChem has relocated to state-of-the-art facilities in the Rosental area of Basel, offering the company an ideal location to significantly expand its operations. SpiroChem has also strengthened its board of directors.

SpiroChem is a spin-off of the Federal Institute of Technology (ETH) in Zurich, where it was also located until recently. According to a statement, the company is now fully operational at its new facilities in Basel.  

“We are excited to announce our move to state-of-the-art facilities in Basel. Our new set-up is ideal for interaction and collaborations with large and small organisations, providing flexibility and speed to solve problems, allowing our clients to focus on effectively designing the drugs of tomorrow,” said CEO Thomas Fessard.

SpiroChem offers new molecules, which are used in the R&D of new medications, and it is now a world leader in this industry, developing innovative solutions for the biotech and pharmaceutical sectors.

“SpiroChem intends to become a key player in Basel’s vibrant, innovation-driven, life science scene, supporting our ambition to increase our portfolio of clients and recruit talented employees to join our growing, cutting-edge company,” said Fessard.

In anticipation of the upcoming growth path, SpiroChem has also strengthened its board of directors with the appointment of Anthony Baxter, who has extensive experience in the pharmaceutical industry.

“His industry experience and network will be invaluable as we continue to grow our portfolio of small, medium, and large pharmaceutical, agrochemical and life science clients worldwide,” added Fessard.

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"I want to turn innovative research into new drugs"

04.07.2017

Each year some 250,000 patients develop a type of cancer because of faulty communication between cells. This malfunction occurs in what is known as the NOTCH signal path. There are currently no effective treatments – but this is set to change. Cellestia Biotech AG is developing an innovative drug against this type of cancer by using a novel active ingredient that selectively attacks the malfunctioning cell communication. The drug could be used to treat leukaemia, lymphomas and solid tumours such as breast cancer.

In 2014 Professor Freddy Radtke and Dr Rajwinder Lehal, who had dealt with this subject in his dissertation, founded the company Cellestia Biotech AG. In 2015, an experienced team of pharmacology and oncology development specialists led by Michael Bauer came on board, investing in Cellestia as co-founders. Bauer and his team had previously spent several years examining various projects in an effort to help shape the development of such a start-up company. We spoke with him about the risks and implications of founding a company.

Interview: Stephan Emmerth

Mr Bauer, how long did you have to look before you found a project you wanted to invest?

Michael Bauer: Over the course of many years and alongside my regular jobs, I and my colleagues examined, evaluated and rejected a number of projects – sometimes more intensively, sometimes less. Some of the projects were great, some being unbelievably innovative. However, something always led us not to pursue a project in the end.

The search did not just cost you a lot of time, but also a lot of money as you have to conduct due diligence every time.

We of course had to put effort into the search. You could say that we identified, examined and evaluated projects acting similar to a small venture fund. Thanks to the make-up of our team, we were able to undertake many of the tasks ourselves, at times bringing in experts. There were many instances when specialists from our network assisted us. There was a considerable amount of good will. To some extent we footed the bill ourselves.

Why did this not work out before Cellestia?

A number of conditions have to be met. The basis is of course excellent, innovative research results protected by patents. Also important are ownership rights to the inventions and reasonable licencing terms. Finally, there has to be agreement on the expectations of the people involved in the project. We have experienced pretty much everything. Many times it emerged over the course of the investigation that, for example, the research data was not quite so convincing as had initially been presented. Or the expectations with respect to the licencing conditions were too far apart. In one project, they wanted to sell us patents that had expired. It often happens that the scientists have unrealistic ideas about the value of their project. One retired professor who had tried in vain for many years to finance his company expected us to try for five per cent of the shares. This is of course not the basis for a partnership.

Juggling research and entrepreneurship is a big challenge, isn’t it?

It is necessary to develop an understanding of the relations and contributions of the various partners involved in such a project, each of who have very different personal risks. On the one hand, there is some 20 years of basic research behind Cellestia, 11 of which were at the EPFL. Rajwinder Lehal has been working concretely on this project for the past nine years, initially as part of his dissertation, then as a post-doc and since 2014 as Chief Scientific Officer. We respect this history from the management team and are happy to have access to the resulting knowledge. At the same time, the inventor’s side has to have regard for the entire expenditure: some five million of public funds were invested over the years at the EPFL. However, it could take hundreds of millions until a product comes onto the market. Moreover, the path from the first successful experiment in lab animals until a drug is approved for human use is long. Altogether, the cost of research could be marginal in comparison to the development and marketing, amounting to only a few per cent. And the development costs are paid for by the investors, who need the investment to pay off. All of these factors have to be considered and respected in a partnership. This worked with our team.

You have many years of industrial experience. What attracted you to the entrepreneurship?

The challenge of turning ground breaking inventions into products attracted me. I consider myself a product developer and had wanted to start a company even as a student. Looking back, I have to say that I am lucky to have gained nearly 20 years of professional experience in product development as it is important to be able to understand and appreciate just how complex the challenges are in product development in life sciences and pharma. This wealth of experience also helps you understand where your own knowledge ends and when experts have to be brought on board to be able to successfully advance a project or a company.

What was the incubation from first contact until you joined as co-founder at Cellestia like?

The current Chief Scientific Officer, Rajwinder Lehal, and I had been in regular contact with each other for a number of years. At that time, however, the project was not advanced enough to establish a company. Initially, Professor Radtke, Rajwinder Lehal and Maximilien Murone founded Cellestia in 2014. We met a few times in summer 2015 with the Lausanne research and founder team at i-net, the predecessor of BaselArea.swiss. Things moved quickly from there. In just a few meetings, we were able to evaluate the project and develop a good personal understanding, which for me and my partners was very important if we were to invest in Cellestia. We could agree on matters quickly, more or less by handshake. Then came the necessary contracts and in November we were already listed in the commercial register. Our lawyer and co-founder Ralf Rosenow saw to the formalities. We decided to move the headquarters from Lausanne to Basel but to leave the research activities in Lausanne, resulting in a sort of transcantonal partnership.

Why move the headquarters to Basel?

For us, the most important argument in favour of Basel was access to talent and resources for product development, resulting from the proximity to leading pharmaceutical companies such as Novartis, Roche, Actelion and many others. Such access to experienced development specialists is more difficult in Lausanne. In addition, our co-founder Roger Meier and other colleagues already have an active investor network in Basel with an affinity to the sector and Basel itself. We did not have such access in Zurich or Geneva at the beginning. I personally also like the quality of work and life in Basel. The city is of a manageable size yet international, with diverse cultural offerings. Furthermore, the Basel airport has excellent connections – you are in the middle of Europe and in just one to two hours you’re practically anywhere Europe, be it London, Berlin or Barcelona. Lausanne, on the other hand, has in its favour the outstanding academic environment with the EPFL and the Swiss Institute for Experimental Cancer Research. Here, too, there is an excellent environment for start-ups, but in our opinion more toward engineering and technical disciplines or medicine technology. Many companies are founded each year at the EPFL and the innovation potential is enormous, but Cellestia is the first company founded at the EPFL that seeks to bring a drug to clinical development. We are happy to be able to combine the positive elements of both regions via what is now an established approach with two locations.

Which pre-conditions were decisive enough that you ended up collaborating and founding the company?

Actually, everything was right from the very beginning. First of all, the personal atmosphere between the people involved has to be right. This was also the basis in coming to a fair agreement for all co-founders with respect to understanding the evaluation and allocating the respective shares in the company at the time it was founded. On the other hand, it was of course crucial that the substantive examination of the project – as concerns both the scientific basis and the quality of the data – and the examination of the patent as well as license conditions of the EPFL were positive. Also important to us was that the risk profile is manageable, i.e. there is a good balance between innovation and reference to the research already carried out.

How will Cellestia develop further operationally?

Cellestia already has a long history, starting with the research activities at the EPFL. When the management team was expanded in 2015, other co-founders joined at the same time that I did: Dirk Weber as Chief Medical Officer, as well as the already mentioned co-founders Ralf Rosenow and Roger Meier. Cellestia now has six employees. Then there are the numerous service and consulting mandates, which complement our internal resources as needed. If you take into consideration external services, I reckon there are now well over 100 people involved in Cellestia. We expect that we will continue to grow in the direction of clinical development as our first project progresses and further expand the team. Moreover, we would like to develop additional products in our pipeline as soon as possible. This will definitely require additional financial resources. The Board of Directors will also develop further, expanding and adapting with each financing round in order to properly represent new investors. Research work is increasingly being carried out by external services providers, and at the same time continuing in the laboratory of Professor Freddy Radtke at the EPFL. We are currently setting up new framework agreements with the EPFL concerning the further use of their infrastructure. The flexibility there is very helpful for us.

What are the next milestones?

A key milestone is the treatment of the first cancer patients. We hope to be able to treat the first patients in October.

How are the clinical studies organised?

The course of a clinical trial for new drugs is strictly regulated. In the Phase I study, the compatibility of the active ingredient is first examined. This is when we treat patients who are suffering from a form of cancer in which NOTCH most likely plays a role. In the following Phase II study, the efficacy of our drug is researched in different types of cancer. This is when we select patients in whom activation of the NOTCH signal path is detected with a Cellestia diagnostic method. The therapeutic benefit for these patients is therefore very likely.

Have there been any surprises so far?

No, not really, because we have considered everything. Or yes, but pleasant surprises: due to the considerable amount of preparatory work, we were already quite certain with respect to the effect mechanism. It has now finally been possible to detect the precise binding mechanism of the drug, which confirmed all former studies. This is also the basis for significantly expanding the programme. We can now build a new platform on whose basis we can generate new drugs for new indications. In addition, it was not that easy to manufacture the drug in large quantities and in a high quality. Innovative steps were needed, which ultimately leads to a patent.

What do you have in mind for the next five years?

We are very optimistic about Cellestia’s prospects for success and are planning the next couple of years in detail. We of course also have a plan for the overall development over the next five years, but as experience shows, such plans always change with the results obtained. This is also the fascination and challenge in medication development – it does not allow you to plan everything in detail, and you have to respond flexibly to new results. This also applies to possible setbacks, of course. It is important to have sufficient reserves to deal with these and resolve them. Thanks to the successful financing rounds that we could close in January 2017, we are in a position to begin with Phase I while at the same time pursue further financing.

Who has invested in Cellestia so far?

The first investors after the deposit of the initial capital were predominantly many of our advisors, i.e. experts who are familiar with the sector as well as private people involved in life sciences and the pharma sector as investors. Around one-third of the shareholders are experts from the pharma and life sciences setting. Over the course of the Series A, B and C financing rounds, larger investments from family offices also came. The first institutional investor, the PPF Group, invested after its own, extensive due diligence that was conducted by experts from Sotio. So far, we’ve been able to mobilise a total of CHF 8 million to drive product development at Cellestia. In preparation of the next financing round, we are in talks with private investors, venture funds and pharmaceutical companies. We are confident that we will be able to win good partners for Cellestia’s next phase. The right combination of partnerships and financing is important. We need strong partners on board to give patients access to our medications quickly.


About
Michael Bauer (born 1966) has been CEO at Cellestia since November 2015. He studied chemistry at the University of Hamburg and completed his doctoral in biotechology from 1994 to 1997 at the Hamburg-Harburg University of Technology. After working in metabolic research at Zeneca in England, he moved to Syngenta in Basel in 2001 where he worked as Global Regulatory Affairs Manager in project and portfolio management. From 2007 to 2009 he was a project leader at Arpida, a biotech firm in the field of antibiotics development. From 2009 to 2012 he was a Global Program Manager at Novartis where he led global development projects in the field of oncology and brought a range of products to clinical development. From 2012 to 2015 he was the Head of Clinical Development at Polyphor.

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BaselArea.swiss welcomes BeiGene to Basel

20.09.2018

report Innovation

University of Basel and ETH Zurich co-found the Botnar Research Centre in Basel

19.09.2018

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Roivant is creating a buzz in Basel

13.06.2017

Roivant Sciences, a fast-growing life sciences company from the US, recently opened its global headquarters in Basel. In celebration of their newly established location, Roivant, together with BaselArea.swiss, invited stakeholders from the life sciences sector to “Halle 7, Gundeldingerfeld” in Basel on June 8th 2017 for a panel discussion on the future of healthcare.

More than 150 guests were interested in hearing this success story first-hand from Roivant Sciences’ founder and CEO, Vivek Ramaswamy. Ramaswamy, a member of the renowned “Forbes 30 Under 30” list and also named a “prodigy” by Forbes magazine for the biggest biotech IPO in US history, gave a trenchant keynote speech before being joined by a panel of experts from Basel’s pharma and biotech industry.

Ramaswamy explained his mission: “We concentrate on promising science and passionate people to systematically reduce the time, cost and risk of bringing new medicines to market”, he said. Roivant Sciences buys and develops drugs that are shelved by other large pharmaceutical companies, and that are stuck in the middle of the drug development traffic within the organization. Ramaswamy’s mission is to create an “alternative highway” by bringing together top talent in drug development and other industries and focus on those assets within lean and dynamic structures. Ramaswamy is certain that data will make the difference in bringing drugs speedily to market.

Roivant Sciences is the umbrella company of five (and the number growing!) late-stage biopharma companies in different therapeutic areas: Axovant tackles dementia, Dermavant deals with dermatology, Myovant focuses on women’s health, Urovant concentrates on urology and Enzyvant develops therapies for patients with rare diseases. All Roivant-family companies can tap into standard capabilities built at Roivant, while each company can develop capabilities of their own to address their specific market requirements.

Settling in Basel without red tape

In his speech, Ramaswamy also made a case for Basel as a headquarters location: “Different nationalities are coming together in this place, three different languages are spoken on the street.” Although relatively small, Basel-Stadt and Basel-Landschaft would be “punching way above their weight”. He also mentioned the thriving biotech scene and the deep humanistic tradition in Basel. In addition, Ramaswamy thanked the Basel authorities for lowering barriers in setting up a business: “There was no red tape. They made setting up here a pleasure.”

During the subsequent panel discussion, Vas Narashimhan, Global Head of Drug Development and Chief Medical Officer at Novartis, Jonathan Knowles, Chairman of the board of directors at Immunocore Limited, David Hung, CEO of Axovant and Vivek Ramaswamy discussed the future of healthcare. Moderated by Alethia de Léon from BaseLaunch, the conversation included topics such as data collection, and critical questions about the current challenges and opportunities of the pharma industry were raised. Big data and biomarkers were some of the highlighted topics as potentially helping to address some of the R&D productivity issues the industry is currently facing. 

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At a glance: The Life Sciences Cluster Basel Region

17.09.2018

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J. Safra Sarasin reports economy has peaked

13.09.2018

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Basel-Landschaft welcomes new companies

21.04.2017

The canton of Basel-Landschaft welcomed a host of new companies over the past few weeks. BaselArea.swiss played in a big role in attracting the companies to establish themselves in Basel.

The companies now represented in Basel-Landschaft are from a variety of different sectors – some work in the sales of medical technology products, others in the manufacture of diagnostic tests. Also newly established in the canton are a music company, a creative agency and a provider of presentation items. BaselArea.swiss consulted these companies and supported them with their establishment.

Medi-CENT Innovation AG, which has offices in Liestal, distributes medical technology products. The company focuses on repairing probes and provides its customers with rental probes in the meantime. Other key areas for Medi-Cent Innovation AG include pain therapy and bone density measurement. Another company now represented in the canton is Predemtec AG. From its location in Binningen, it develops diagnostic tests that can determine the risk factors for dementia.

Musik Hug has opened a new musical world in Allschwil, where it offers a wide range of musical instruments. Its new location also comprises a piano and wind instrument workshop. Newly established in the Dreispitz area is the creative agency MJM.CC AG, which specialises in the production of awards ceremonies, such as the Swiss Film Award and Best of Swiss Web.

Meanwhile, Achilles Präsentationsobjekte GmbH is heading the business of KMC Karl Meyer AG. Thanks to this transition, existing customers can continue to access the consultancy and service portfolio they were accustomed to from KMC Karl Meyer AG. However, they can also access one of the biggest selections of folder and presentation systems in Europe.

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ETH investing 200 million in Basel campus

07.09.2018

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Basel is one of the most dynamic cities in Europe

04.09.2018

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Companies continue to find Switzerland appealing

05.04.2017

Bern – More foreign companies relocated to Switzerland last year than in any previous year. Economic development agencies attracted innovative companies with high value creation.

According to the Conference of Cantonal Economic Affairs Directors (VDK), 265 new foreign companies relocated to Switzerland last year, creating 1,005 new jobs. In 2015, there were 264 relocations and 1,082 additional jobs.

The VDK spoke of “solid results” in the face of a difficult economic environment. Despite the strong franc and uncertainties concerning the general tax and political situation, “Switzerland could obviously hold its ground in the international arena”.

As a summary shows, life sciences was the relocations leader with 60 companies, followed by 52 companies from the ICT sector. 23 relocations each came from the trade and raw materials sector, and the engineering, electrical and metal industries. 18 of the new companies to Switzerland are active in the financial sector, and 12 work in the cleantech and greentech sectors.

This year and in the years to come, Switzerland Global Enterprise – the Economic Development Agency of the federal government and municipalities, and which is led by the national marketing steering committee (SG LM) – will focus increasingly on promoting companies in key industries. In important markets such as Germany, France, Italy, Russia, the US, Japan, India, China, the UK and Brazil, Switzerland can rely on cooperation with the Swiss Business Hubs (SBH) and the Swiss embassies.

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Welcome to Basel: MachIQ

04.09.2018

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Inauguration du nouveau site de production Cartier à Glovelier

03.09.2018

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Swiss are among the happiest people in the world

20.03.2017

Switzerland is one of the four happiest countries in the world, according to the latest World Happiness Report. The study looks at GDP per capita, trust in government and business, and other social factors relating to well-being.

Switzerland is the fourth happiest country in the world, according to this year’s World Happiness Report. Along with Norway (first place), Denmark (second place) and Iceland (third place), the Swiss are among the happiest in the world. As the report’s authors point out, the differences among the top four countries are very low and they tend to swap places each year. Switzerland came in first place in 2015.

The top 20 countries in this year’s ranking include Finland (5), Canada (7), Israel (11), Costa Rica (12), the US (14) and Germany (16). At the bottom of the list is the Central African Republic.

International researchers analysed a total of 155 countries for this year’s report, taking into account both national data and the results of surveys conducted on the self-perception of residents. Factors such as GDP per capita, healthy years of life expectancy, perceived absence of corruption in government and business, perceived freedom to make life decisions, and generosity as measured by donations are compared.

 

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Basel-Stadt is among the most competitive cantons

03.09.2018

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Novartis creates up to 450 new jobs

27.08.2018

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Roivant Sciences establishes global HQ in Basel

19.12.2016

Basel – The biopharmaceutical company Roivant Sciences is opening its global headquarters in Basel. Several of its affiliates are also moving to Basel. The city is a hub for pharmaceutical innovation and talent.

BaselArea.swiss assisted Roivant Sciences and its affiliated companies in evaluating and relocating to the site. The business location promotion organisation for northwest Switzerland welcomes the new companies to the region and is pleased that such exciting and fast-growing companies chose Basel for their headquarters.

"Roivant's mission is to reduce the time and cost of developing new medicines for patients," said Vivek Ramaswamy, founder of the Roivant group of companies, in a statement announcing the new global headquarters in Basel. "We believe this location in the hub of European pharmaceutical innovation and talent will support our vision."

With offices in the US, Switzerland and Bermuda, the biopharmaceutical company pursues innovative drug development, collaborating closely major industry players such as Eisai, GlaxoSmithKline and Takeda Pharmaceuticals. Roivant Sciences specialises in the fields of neurology, oncology, endocrinology, dermatology, and hepatology.

Several Roivant Sciences affiliates have opened their headquarters in Basel simultaneously, according to the statement. One of them is Axovant Sciences Ltd., a clinical-stage biopharmaceutical company focused on the treatment of dementia.

From its new headquarters in Basel, Axovant  Sciences intends to “build a fully integrated organization to manage global commercial and medical strategies, manufacturing and supply chain, intellectual property, and other business functions,” said Mark Altmeyer, President and Chief Commercial Officer of Axovant Sciences. “Our presence in Basel will provide access to a high-quality talent pool that will be key to our future success."

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Two of the world’s most valuable companies come from Basel

04.07.2018

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Nouveau au Jura: La fintech jurassienne eHyve

02.07.2018

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Dr App – Digital transformation in the life sciences

30.11.2016

The future belongs to data-driven forms of therapy. The Basel region is taking up this challenge and investing in so-called precision medicine.
An article by Fabian Streiff* and Thomas Brenzikofer, which first appeared on Friday, 14 October 2016, in the NZZ supplement on the Swiss Innovation Forum.

So now the life sciences as well: Google, Apple and other technology giants have discovered the healthcare market and are bringing not only their IT expertise to the sector, but also many billions of dollars in venture capital. Completely new, data-driven, personalized forms of therapy – in short: precision medicine – promise to turn the healthcare sector on its head. And where there is change, there is a lot to be gained. At least from the investor’s point of view.

From the Big Pharma perspective, things look rather different. There is quite a lot at stake for this industry. According to Frank Kumli from Ernst & Young, the entry hurdles have been relatively high until now: “We operate in a highly regulated market, where it takes longer for innovations to be accepted and become established.” But Kumli, too, is convinced that the direction of travel has been set and digitalization is forging ahead. But he sees more opportunities than risks: Switzerland - and Basel in particular - is outstandingly well-positioned to play a leading role here. With the University of Basel, the Department of Biosystems Science and Engineering ETH, the University of Applied Sciences Northwest Switzerland, the FMI and the University Hospital Basel, the region offers enormous strength in research. It also covers the entire value chain, from basic research, applied research and development, production, marketing and distribution to regulatory affairs and corresponding IT expertise. The most important drivers of digital transformation towards precision medicine include digital tools that allow real-time monitoring of patients – so-called feedback loops. The combination of such data with information from clinical trials and genetic analysis is the key to new biomedical insights and hence to innovations.

Standardized nationwide data organization
In rather the same way that the invention of the microscope in the 16th century paved the way to modern medicine, so data and algorithms today provide the basis for offering the potential for much more precise and cheaper medical solutions and treatments for patients in the future. At present, however, the crux of the problem is that the data are scattered over various locations in different formats and mostly in closed systems. This is where the project led by Professor Torsten Schwede at the Swiss Institute of Bioinformatics (SIB) comes into play.

As part of the national initiative entitled Swiss Personalized Health Network, a standardized nationwide data organization is to be set up between university hospitals and universities under centralized management at the Stücki Science Park Basel. Canton Basel-Stadt has already approved start-up funding for the project. The standardization of data structures, semantics and formats for data sharing is likely to substantially enhance the quality and attractiveness of clinical research in Switzerland – both at universities and in industry. There is no lack of interest in conducting research and developing new business ideas on the basis of such clinical data. This was apparent on the occasion of Day One, a workshop event supported by BaselArea.swiss for the promotion of innovation and economic development and organized by the Precision Medicine Group Basel Area during Basel Life Sciences Week.

More than 100 experts attended the event to address future business models. Altogether 14 project and business ideas were considered in greater depth. These ranged from the automation of imaging-based diagnosis through the development of sensors in wearables to smartphone apps for better involvement of patients in the treatment process.

Big Pharma is also engaged
“The diversity of project ideas was astonishing and shows that Switzerland can be a fertile breeding ground for the next innovation step in biomedicine,” Michael Rebhan from Novartis and founding member of the Precision Medicine Group Basel Area says with complete conviction. The precision medicine initiative now aims to build on this: “Despite the innovative strength that we see in the various disciplines, precision medicine overall is making only slow progress. The advances that have been made are still insufficient on the whole, which is why we need to work more closely together and integrate our efforts. A platform is therefore required where experts from different disciplines can get together,” says Peter Groenen from Actelion, likewise a member of Precision Medicine Group Basel.

There is also great interest among industry representatives in an Open Innovation Hub with a Precision Medicine Lab as an integral component. The idea is that it will enable the projects of stakeholders to be driven forward in an open and collaborative environment. In addition, the hub should attract talents and project ideas from outside the Basel region. The novel innovation ecosystem around precision medicine is still in its infancy. In a pilot phase, the functions and dimensions of the precision medicine hub will be specified more precisely based on initial concrete cases, so that the right partners can then be identified for establishing the entire hub.

Leading the digital transformation
The most promising projects will finally be admitted to an accelerator programme, where they will be further expedited and can mature into a company within the existing innovation infrastructures, such as the Basel Incubator, Technologiepark Basel or Switzerland Innovation Park Basel Area.

Conclusion: the Basel region creates the conditions for playing a leading role in helping to shape digital transformation in the life sciences sector and hence further expanding this important industrial sector for Switzerland and preserving the attractiveness of the region for new companies seeking a location to set up business.

* Dr Fabian Streiff is Head of Economic Development with Canton Basel-Stadt

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Speedboat Meets Supertanker

02.07.2018

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Where the life sciences are concentrated

26.06.2018

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BaselArea.swiss welcomes Biopharmaceutical Company Ultragenyx

06.07.2016

BaselArea.swiss Economic Promotion is pleased to announce that Ultragenyx, a biopharmaceutical company focused on the development of novel products for rare and ultra-rare diseases based in the San Francisco Bay Area, California, is opening their European headquarters in the city of Basel, Switzerland. Stefano Portolano, M.D., has been appointed Senior Vice President and head of Ultragenyx Europe. In this role, Dr. Portolano will be responsible for building and leading the Ultragenyx commercialization efforts across Europe and developing the company's European organization.

«Ultragenyx selected Basel as our European headquarters because of the area’s thriving life sciences community, accessibility to the rest of Europe, business-friendly environment and strong international talent pool,» said Dr. Portolano. «On behalf of Ultragenyx, I would like to thank the team at BaselArea.swiss for their partnership throughout this process, as they have been invaluable as we look to establish our European presence and help bring promising therapies to patients throughout the region. We are focusing on key hires to establish necessary capabilities so that we are ready to launch if we receive approval, and we are confident we will be able to find and attract key talents in Basel».

Dr. Portolano brings over 20 years of experience in the biopharmaceutical industry, in medical, commercial and general management roles in both Europe and the United States. He has worked both on pre-launch and launches of products for rare diseases, both at Genzyme and Celgene. Before joining Ultragenyx, he spent ten years at Celgene Corporation in increasing leadership roles, most recently as Vice President of Strategy & Commercial Operations, EMEA. Prior to Celgene, he worked at Genzyme for eight years. Dr. Portolano received his M.D. degree from Federico II University in Napoli, Italy. He completed his postdoctoral fellowship and served as Adjunct Assistant Professor of Medicine at the University of California at San Francisco.

About Ultragenyx
Ultragenyx is a clinical-stage biopharmaceutical company committed to bringing to market novel products for the treatment of rare and ultra-rare diseases, with a focus on serious, debilitating genetic diseases. Founded in 2010, the company has rapidly built a diverse portfolio of product candidates with the potential to address diseases for which the unmet medical need is high, the biology for treatment is clear, and for which there are no approved therapies.

The company is led by a management team experienced in the development and commercialization of rare disease therapeutics. Ultragenyx’s strategy is predicated upon time and cost-efficient drug development, with the goal of delivering safe and effective therapies to patients with the utmost urgency.

The company's website for more information on Ultragenyx

About BaselArea.swiss
BaselArea.swiss is responsible for the international promotion of the economic region of Basel, Switzerland. In a joint effort, the economic promotion agencies of the Swiss cantons of Basel-Stadt, Basel-Landschaft, and the Jura support expansion and relocation projects of foreign companies, and offer consulting services to entrepreneurs and startups. The identification and procurement of suitable real estate and properties for international and national companies is an important service of BaselArea. BaselArea’s consulting services for interested parties are provided free of charge.

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Northwestern Switzerland pushes for new Jura tunnel

18.06.2018

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Basel startup QNAMI wins seed capital

14.06.2018

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