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Daniel O’Day to switch from Roche to Gilead

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Roche CEO and member of the Corporate Executive Committee, Daniel O’Day, will step down its role as of 31 December 2018. He will provide support to the company for a smooth transition until the end of February 2019, to then become the new Chairman of the Board and Chief Executive Officer of Gilead Sciences, effective March 1, 2019. O’Day has held the position in Roche since 2012, and prior to that led Roche Diagnostics.

The new CEO of Roche starting 1 January 2019 will be William (Bill) Anderson, currently CEO of Genentech; he will be based in Basel, report to Severin Schwan, Roche Group CEO and become a member of the Corporate Executive Committee. Bill Anderson joined the Group in 2006 as lead of the Immunology Business Unit in Genentech, to then took responsibility for Oncology Sales and Marketing. In 2013, he was appointed Head of Global Product Strategy based in Basel, and became CEO of Genentech in 2017. Bill Anderson holds Master of Science degrees in Management and Chemical Engineering from Massachusetts Institute of Technology.

IP’s agreement for Pfizer and AbbVie

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The global intellectual property matters for Pfizers proposed adalimumab biosimilar has been solved with the signature of licensing agreements with AbbVie, which granted Pfizer a non-exclusive patent license for the use and sale of the product in many countries around the world. All litigation pending between the parties will be withdrawn. The financial details of the agreements have been kept confidential. According to the company, in US the license period will begin on November 20, 2023, while in Europe the launch of the new biosimilar may occur after its approval by the European Medicines Agency.

Indian pharmaceutical market, strong the weight of generics

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India

The Indian pharmaceutical market is booming. This on the one hand thanks to production costs that are significantly lower than those of the United States and Europe (almost half), on the other hand for the government’s moves to encourage it. The Indian pharmaceutical industry responds to over 50% of the global demand for various vaccines, 40% of the demand for generics in the United States and 25% of all drugs in the United Kingdom. The India brand equity foundation produced in July 2018 a dedicated report for this growing market.

India, the advantages

Cost-effectiveness of production is the first element to analyse if we look at the Indian market and think about the advantages of this country. In fact, the low labor and R&D costs increase the efficiency of Indian pharmaceutical companies. India’s production cost is about 33% lower than that of the United States. Due to lower treatment costs, India is also emerging as a primary destination for medical tourism. If this is coupled with the ability of the country to produce high quality medicines at low prices, it is easy to understand what a great business opportunity for the domestic industry is. Secondly, India focuses on several economic drivers: on the one hand the economic growth of the country to improve the accessibility of drugs, on the other the increase in the penetration of health insurance. Finally, with increasing penetration of pharmacies, especially in rural India, over-the-counter drugs will be readily available to more people. Furthermore, India intends to continue to diversify its portfolio, which currently weighs 10% on global pharmaceutical production. The country has more than 60,000 generic brands in 60 therapeutic categories and produces more than 500 different APIs. Last but not least, government support for growth (Box 1). “Pharma Vision 2020” was presented to make India a global leader in end-to-end drug production.

Generic Indian pharmaceutical market

India is the largest provider of generic drugs globally. In particular, the Indian pharmaceutical industry provides answers to 40% of generic demand in the United States. The government plans to allocate 70 million dollars to local actors for the development of biosimilars. Furthermore, the domestic market is expected to reach $ 27.9 billion in 2020 and $ 40 billion by 2030.

Active pharmaceutical ingredients

National API consumption is expected to reach $ 18.8 billion by 2022 (fiscal year). In April 2018, a high-level task force was established to create a roadmap to increase national production of APIs. In fact, India currently imports over 60% of APIs from other countries.

Market size

The Indian pharmaceutical market was valued at $ 33 billion in 2017. Based on the growing annual turnover, anti-infective, cardiac and gastrointestinal drugs are the ones with the largest market share. The pharmaceutical industry in the country is expected to expand in the coming years to reach 55 billion in 2020 (CAGR of 22.4% in the period 2015-20). India’s pharmaceutical exports are estimated at 17.27 billion dollars in 2017-18 and are expected to reach 20 billion dollars by 2020. The main export destination for Indian pharmaceuticals is the United States. In 2017, 38% of the exports of products formulated by India were in the United States, followed by 20% by Sub-Saharan Africa (Figure). In 2018, 31% of India’s total drug exports went to the United States. Indian companies received 304 approvals shortened by the FDA in 2017. The country accounts for about 30% (in volume) and about 10% (value) in the US generic market. The Indian biotechnology industry is expected to grow at an average rate of about 30% per year and reach $ 100 billion by 2025. Biopharma, including vaccines, therapy and diagnostics, is the largest sub-sector and contributes almost 62% of total revenue ($ 1.89 billion).

Indian export in 2017
Indian export in 2017

Investments

The Indian pharmaceutical industry has received foreign direct investments worth USD 15.72 billion between April 2000 and March 2018. In 2017, the Indian pharmaceutical sector saw 46 merger and acquisition operations (M&A) worth a total of 1.47 billion dollars. Over the past three years, the pharmaceuticals segment has accounted for over 70% of the merger and acquisition operations of the entire country.

Contract Research and Manufacturing Services (CRAMS)

That is a fragmented market with more than 1,000 players. CRAMS industry is estimated to reach US$ 18 billion in 2018 and expected to witness a strong growth at a CAGR of 18-20 per cent between 2013-18.

Clinical trial

India is among the leaders in the clinical trials market. Because of a genetically diverse population and the availability of qualified doctors, India has the potential to attract huge investments in this field. Data show that from 2009 to 2015, 3043 clinical trials were performed in India. Furthermore, in June 2017, the Clinical Trials Registry – India registered 8,950 clinical trials.

ISO 10993-1: Chemical-physical characterization of DM

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The world of Medical Devices (DM) is in great ferment. The chemical-physical characterization of DMs is an increasingly important topic that involves the regulatory fields. The reflections on the theme are particularly relevant also in light of the new version of ISO 10993-1 published recently. With Chiara Picotti, Senior Consultant and Eurofins Medical Device Testing Italy team leader, PharmaWorldMagazine analyses the latest news, trying to understand what changes for the manufacturers.

What is required by the regulatory framework of reference regarding the chemical-physical characterization of DMs?

CP: The new Regulation for DM n. 2017/745 mentions the chemical-physical characterization in different sections. This must be taken into account in the design and manufacture of DMs to ensure that the device meets the general safety and efficacy requirements; it is also referred to as part of the technical documentation that the manufacturer is required to elaborate and provide evidence of the verification and validation of the product.

From a regulatory point of view the new version of the ISO 10993-1 published recently places a particular focus on the chemical-physical characterization of the devices. Although even in the previous version the characterization of materials was already considered a crucial and initial step of biological evaluation, many manufacturers relied directly on the table of Annex A of ISO 10993-1 in which the chemical-physical characterization was not explicitly indicated among the endpoints to be evaluated.

The new ISO 10993-1 version gives more emphasis to the chemical characterization that is now considered a prerequisite for biological risk assessment and must precede the evaluation or testing of any biological effect such as systemic toxicity, genotoxicity, etc.

The chemical-physical characterization is an indispensable prerequisite (ISO 10993 latest version). What will therefore change for manufacturers compared to the past?

CP: The fundamental objective of the insertion of the chemical characterization as a prerequisite to the biological evaluation of the device is to increase the level of knowledge of the materials or ingredients that make up the device, the manufacturing process, sterilization and other post-manufacturing processes such as packaging. According to the new ISO 10993-1 the characterization should evaluate at least the so-called “constituents” of the device and possible residues of the production process as additives and agents to identify the potential unintentional release of substances. In addition, it also indicates that some physical information may be required associated with implantable devices or devices in contact with blood. All this with the final aim of having a greater control of these aspects by the manufacturer.

Furthermore, the results of the chemical characterization must be evaluated in order to identify the correct approach to biocompatibility tests, including those in vivo. In this way the manufacturer is called upon to make a careful selection of the biocompatibility tests to be carried out, rather than resorting to the complete battery of tests.

Will the new ISO requirements lead to a reduction of in vivo studies?

CP: Certainly yes. The chemical characterization not only allows to obtain more information on the device and the residues of the production process, but also allows to evaluate some biological effects such as subacute, subchronic, chronic systemic toxicity, genotoxicity and carcinogenesis going therefore to reduce the need to perform tests in vivo.

In order to cover these biological effects, the chemical characterization must be structured in such a way as to allow identification of the extractable or releasable profile of the device; in addition, the data obtained must be analyzed from a toxicological point of view to evaluate the potential patient exposure scenario.

With regard to local effects, it has been recognized that these may not be adequately covered by chemical characterization.

However, there is fervent international activity focused on validating alternative in vitro methods to evaluate biocompatibility. Recently a very important milestone has been reached in this field: an in vitro skin irritation test has been validated on DM extracts. Soon the regulatory framework will be updated with the publication of ISO 10993-23 which will describe a method for assessing skin irritation without the need for in vivo studies.

Can the demands of the new ISO lead to an advantage in economic and temporal terms for the manufacturer?

Even in this case the answer is yes. As indicated before, characterizing the device from a chemical-physical point of view and toxicologically analyzing the obtained data, it is possible to omit tests such as subacute, subchronic, chronic, systemic toxicity and carcinogenesis, notoriously long and expensive tests. The physical-chemical characterization therefore represents an opportunity for the manufacturer to reduce the times and costs associated with the pre-clinical evaluation of the device that must be registered and placed on the market. It can also be used to manage the changes to be made to the DM already on the market. Analyzing the “old” device and the “new” from a chemical-physical point of view and comparing the results obtained, we can verify if the identified differences are toxicologically relevant or not. In this way, it is possible to extend the biocompatibility evaluations carried out on the “old” device to the new one, avoiding to perform new tests.

How should the physical and chemical characterization required be carried out in practice?

CP: The new ISO 10993-1 indicates that the chemical characterization should be performed according to the indications of ISO 10993-18, standard currently under revision and for which an updated version will be available in the coming years.

However, ISO 10993-18 will not include the test protocols to follow: the world of medical devices is so varied and diversified that it is not possible to identify test procedures suitable for evaluating all types of devices from a physical-chemical point of view.

In general, there are two main categories of tests: direct characterization of materials and evaluation of substances that can potentially be released from the device. The first group evaluates the intrinsic chemical properties of the materials while the second identifies the release through tests called “Extractable and Leachable” which is then evaluated in terms of toxicological risk.

The new ISO 10993-18 will provide indications on how it is possible to characterize the device going to evaluate, for example, its configuration, identifying and analyzing the composition of the starting materials and the release of the device to verify the presence of substances potentially introduced into the device due to of the production process.

Which tools are available to device manufacturers to help them identify an appropriate test strategy?

Both ISO 10993-1 and ISO 10993-18 (which will be published in the near future) provide indications to understand how to approach chemical characterization.

In particular, ISO 10993-18 will include flowcharts that will be very useful for identifying the prerequisites of some steps and the subsequent phases that follow. However, as explained above, it will not give indications on which protocols to follow and under what circumstances. It is therefore essential to involve the manufacturer who, on the basis of the information already available and the nature of his device, is called upon to identify the most appropriate strategy for the chemical-physical characterization.

When specific tests are necessary and not necessary and what determines their choice?

CP: As indicated by ISO 10993-1, the extension of the chemical-physical characterization must reflect the nature and duration of contact with the patient and take into account the physical state of the device (eg cream, gel, liquid), the level of knowledge of the formulation of materials and existing data of clinical and non-clinical safety.

As a first step it is therefore necessary to collect all the information already available on the device. If the combination of all materials, chemicals and processes have a consolidated safety history for the same intended use and physical properties have not been modified, it is possible to conclude, after rationalization, that no further chemical characterization of the device. If “Gap” are identified, by evaluating the type of interaction between the device and the body, the most appropriate test approach is identified to collect the missing data. In some cases, screening tests may be sufficient while in others, methods aimed at quantifying the presence of some compounds must be used. The choice of the approach depends on what is being researched and what needs to be evaluated.

Pharmaceutical Cdmo: the Italian supremacy

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The balance sheet data confirm the first place of Italy in the European Union for the value of production in the pharmaceutical CDMO. With 1.9 billion euros it exceeds Germany (1.7 billion euros) and France (1.5 billion euros). The evolution from 2010 to 2016 shows a strengthening of the leadership at European level, with a share of the total increase from 22% to 24% and the contribution to the highest growth among all countries (€ 511 million out of a total of 1,620, 32%).
The development of CDMO in Italy is driven by export, which represent 74% of turnover. Almost 90% of exports are directed to advanced markets: Europe, USA or Japan. In 2017, compared to 2016, the value of the production of pharmaceutical CDMO in Italy grew by 14%, well above the manufacturing average (+4%), mainly due to the development of more complex production segments (+20%) and thanks to the liveliness of exports (+23%).
These data confirm that the pharmaceutical CDMO in Italy is intercepting global demand and reinforces its competitiveness on types of production with greater added value.

CDMO: a green culture sector

In addition to the analysis of balance sheet data and sector performance, the survey also examined the relationship between CDMO and environmental sustainability. According to the Prometeia survey, 8% of total third-party investments are in environmental protection, about twice the industry average. 50% of these dedicated to the reduction of pollution and the other 50% to clean technologies or “integrated technologies” (compared to a manufacturing average of 32%). These are equipment and plants that reduce or reduce the impact of pollution at source.

Almost all companies have planned further investments in technologies with a lower environmental impact in the near future, in particular in the adaptation of existing plants, but also in the purchase of new ones.

Investments for environmental sustainability

Investments and expenses in environmental protection have produced significant positive effects in terms of production efficiency and environmental sustainability. In fact, the data show that between 2010 and 2017 energy and water consumption are, in relation to production, in sharp decline.

  • -44% average consumption of water;
  • -22% average energy consumption.

Among the technologies adopted by the companies are cogeneration plants (ie plants that produce both thermal and electrical energy at the same time, which bring various advantages: reduction of atmospheric emissions to the recovery of unused thermal energy, greater energy efficiency), plants refrigerators (chillers) with lower energy impact, photovoltaic systems, use of LED technologies.

 

A genomics collaboration for women’s health

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Ferring Pharmaceuticals and Celmatix announced a new genomics collaboration based on Celmatix’s proprietary knowledge base technology. This will be used to explore whether women’s responses to ovarian stimulation during in vitro fertilisation (IVF), which can vary greatly, are linked to individual characteristics of their genome. These insights could help to reduce adverse and life-threatening outcomes such as ovarian hyper-stimulation syndrome, and lower the rates of IVF cycle cancellation due to poor treatment response.

Joint venture on CAR-T for Ono Therapeutic

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Japanese pharmaceutical company Ono Pharmaceutical entered a strategic collaboration agreement with US’s Fate Therapeutics for the joint development and commercialization of two CAR-T cell product candidates for cancer. Under the terms of the agreement, Ono will pay $10 million upfront payment, plus up to additional $60 million.

Fate retains global responsibility for development and commercialization of the first candidate (an induced pluripotent stem cell (iPSC)-derived CAR T-cell candidate targeting an antigen expressed on certain lymphoblastic leukemias), with Ono having an option for Asia. The second candidate targets a novel antigen identified by Ono and expressed on certain solid tumors; in this case, the Japanese company has  an option to assume global responsibility for further development and commercialization, while Fate retains right to co-develop and co-commercialize the product in the US and Europe. In both cases, Fate retains manufacturing responsibilities on a global basis.

Alexion acquired Syntimmune

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Alexion closed the final agreement to acquire Syntimmune, a clinical-stage biotechnology company developing antibody therapeutics targeting the neonatal Fc receptor (FcRn), for an upfront payment of $400 million and additional milestone-dependent payments of up to $800 million.

Syntimmune’s lead candidate, SYNT001, is a humanized monoclonal antibody that inhibits the interaction of FcRn with Immunoglobulin G (IgG) and IgG immune complexes currently in Phase 1b/2a studies in patients with warm autoimmune hemolytic anemia and in patients with pemphigus vulgaris or pemphigus foliaceus. It has demonstrated proof of mechanism showing rapid IgG reduction.

A common platform for novel immune therapies for cancer

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Regeneron and bluebird bio announced a collaboration to apply their respective technology platforms to the discovery, development and commercialization of novel immune cell therapies for cancer. At the center of the initiative are the Regeneron’s VelociSuite platform technologies for the discovery and characterization of fully human antibodies as well as T cell receptors (TCRs) directed against tumor-specific proteins and peptides. bluebird bio will contribute its expertise in gene transfer and cell therapy to advance the jointly selected six initial targets (more might be identified in future); the companies will equally share the costs of R&D up to the point of submitting an Investigational New Drug application. Regeneron will also make a $100 million investment in bluebird bio common stock.

Partnership for 4D bioprinting

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French pharmaceutical company Servier signed a scientific partnership with Poietis, a to use Poietis’s 4D bioprinting technology for the development and production of liver tissues. The final goal is to improve the detection of drug-induced liver lesions as early as the preclinical trial phase. Hepatotoxic potential is poorly detected by current preclinical models and, while such lesions are rare, they can have serious consequences for patients. Current models based on human cell cultures often lack longevity and complexity, which limits their usefulness in toxicology. Poietis’s technology allows the reproduction of a new, complex, 4D bioprinted human liver tissue containing lines of human liver cells and immunocompetent cells within a defined architecture designed to imitate human liver tissue in vitro.

Newsstand

  • Supplement to n.5 - October 2025 NCF International n.2 - 2025
  • NCF International n.1 - 2025
  • Supplemento to n.9 - October 2024 NCF International n.3 - 2024