The geniuses of biotechnology, likened to the Mozarts and Beethovens by Generate Biomedicines CEO Mike Nally, hold the key to discovering a plethora of innovative medications. AI has the capacity to generate an abundance of programs, limited only by the number of machines available to run it, unrestricted by the constraints of mortal discovery. However, the real challenge lies in how many projects your biotechnology can effectively manage.
In preparation for forging new partnerships, Nally is en route to the prestigious San Francisco J. P. Morgan Healthcare Conference. Prior to their departure for the Golden Gate City, Generate disclosed that Amgen has introduced a seventh program to their existing two-year disease-agnostic collaboration.
The initial five-target agreement, which initially had uniform milestones for each program, has now been expanded by Amgen to include an undisclosed upfront payment along with an additional $370 million earmarked for subsequent milestones. The partnership also entails profit-sharing on future revenues.
Both companies have maintained a veil of secrecy regarding their specific objectives, emphasizing that their drug discovery endeavors are focused on specific targets rather than disease-specific. Nally revealed that they have explored three distinct amino approaches thus far. In a discussion with Fierce Biotech, he expressed satisfaction with the partnership’s progress, describing it as “fruitful” and “exceptionally well.” The inception of the fifth program stemmed from their initial collaboration.
Nally emphasized the increased likelihood of developing valuable medicines for patients through collaborative efforts, stating, “The fifth target was of mutual interest, building upon our prior work, and was a natural progression for both parties.”
Following a challenging year in 2023 characterized by layoffs, program reprioritization, and closures within the biotechnology sector, Generate is entering the most significant medical investment conference of the year. With \(400 million in cash reserves, a multitude of projects in the pipeline, and several pivotal data readouts scheduled for the year, Nally’s team successfully secured \)273 million by September 2023.
When queried about potential fundraising efforts at J. P. Morgan, Nally hinted at future considerations, stating, “We are constantly evaluating our future fundraising endeavors.” While there are no immediate plans for fundraising, Nally acknowledged the possibility of seizing opportunities, particularly if the company achieves significant scientific milestones that attract investor interest.
An IPO remains a looming prospect on the horizon. While there are no imminent plans to go public, Nally remains attentive to market dynamics and notable developments within the biotech landscape, citing CG Oncology’s recent investor news in early 2024.
Nally underscored Generate’s focus on AI, a prominent theme in biotechnology and broader technological spheres, as a key factor in sustaining investor engagement amidst a challenging environment. He expressed optimism that the positive indicators at the close of 2023 may signal a more favorable climate for his peers in the industry.
Reflecting on the fluctuations in the biotech market since 2021, Nally highlighted the recent resurgence in the XBI index towards the end of 2023, instilling a sense of optimism as the industry enters 2024. He noted, “There were some green shoots emerging at the close of last year.”
While AI holds immense promise in revolutionizing drug discovery, companies must substantiate their claims with tangible results. Instances such as BenevolentAI’s setback in allergy drug development serve as cautionary tales, prompting a reassessment of AI-driven approaches in drug discovery.
Nally emphasized the importance of combining AI tools with a profound understanding of drug discovery and development processes. While AI can enhance individual facets of drug discovery, Nally highlighted the rarity of companies leveraging AI across all stages, from target identification to clinical development.
Generate’s strategic focus on molecular aspects enables them to generate 10 to 15 programs annually, bolstered by collaborations with industry leaders like Amgen and MD Anderson’s cancer specialists. These partnerships provide invaluable insights necessary for evaluating the most promising programs.
Looking ahead, partnerships are poised to play a pivotal role in shaping Generate’s trajectory and potentially bolstering their financial standing. Nally expressed enthusiasm for cultivating strong partnerships to maximize the platform’s potential.
In 2024, Generate plans to showcase their domestic network, with a stage 1 trial slated for the COVID-19 monoclonal antibody GB-0669. Targeting immunocompromised patients who may not derive sufficient protection from vaccines, this initiative addresses an unmet need in the market. Additionally, GB-0895, an internal medication for asthma, holds promise in reducing medication frequency for patients, potentially offering relief for chronic obstructive pulmonary disease as well.
Through a strategic blend of AI innovation, collaborative partnerships, and a robust pipeline of programs, Generate Biomedicines is poised to make significant strides in the biotechnology landscape, driving impactful advancements in drug discovery and patient care.
