CAR-T Therapies: 2+ Years Into Commercialization (4)

Kymriah Manufacturing

In 2012, Novartis acquired a specialized facility from the former Dendreon for $43 million. Dendreon went bankrupt trying to establish its once-promising prostate cancer vaccine Provenge.

Dendreon’s Morris Plains, New Jersey, facility is a 173,100 square foot state-of-the-art IMF.

In July 2018, before EU approval, Novartis announced that it had signed an agreement with CellforCure, a French CDMO, to produce CAR-T cell therapies. Manufacturing at Cell for Cure’s site in Les Ulis, a city southwest of Paris, would mimic the processes Novartis has in place at its Morris Plains, New Jersey hub.

In August 2018, when Kymriah get approved in EU, Norvartis said it will spend CHF90 million over three years on an existing building at a production site in Stein, Switzerland. Novartis expects to initially have 260 positions and create up to 450 new jobs by 2021.

New manufacturing capacities are keys to scale up revenue and Novartis acknowledged existing production problems with out-of-spec doses.

In September 2018, Novartis paid $40 million for a 9% stake in Cellular Biomedicine Group (CBMG), a Shanghai-based firm which will manufacture CAR-T cell therapy Kymriah for the China market and license select proprietary technology to Novartis for global use.

In December 2018, Novartis went further to acquire CellforCure from LFB including the cell and gene manufacturing facility located in Les Ulis and the related adjacent land.

The Switzerland facility completed the first clinical production batch in September 2019 and inaugurated at the end of November.

In addition to manufacturing areas for novel CAR-T cell therapies, the new building also hosts the production of innovative, difficult-to-manufacture solid dosage forms such as tablets and capsules.

CAR-T Therapies: 2+ Years Into Commercialization (3)

The manufacturing process of personalized cell therapies is more complex than mass production of traditional drugs.

The location is also extremely important which affects turnaround time.

Yescarta Manufacturing

Kite’s original lease of a 18,000 sqft site in Santa Monica supported its clinical trials while its 43,500 Los Angles facility opened in 2016 was designed for commercialization launch.

The El Segundo site is estimated to have the capacity to produce up to 5,000 patient therapies per year. The plant’s location, adjacent to Los Angeles International Airport, is intended to expedite receipt and shipment of engineered T-cells from and to patients across the United States and Europe. According to Kite, the time from when a patient’s materials are shipped to the facility to when the engineered T cells are returned to the patient is approximately 14 days.

When Yescarta was approved in Oct 2017, Gilead’s statement said in the ZUMA-1 pivotal trial, Kite demonstrated a 99 percent manufacturing success rate with a median manufacturing turnaround time of 17 days, which is important to patients given the potential for rapid disease progression in this population.”

In 2018, three month before Yescarta is approved in Europe, Kite leased a new facility in the Netherlands to engineer cell therapies in Europe – a 117,000 square-foot site in Hoofddorp (SEGRO Park Amsterdam Airport). The plant is expected to be operational in 2020 and saving 3-4 days in delivery (from Europe to LA). The current time including international delivery, from apheresis to delivery of Yescarta, is 26-29 days.

Meanwhile, in addition to the Netherlands facility, Kite said it had recently purchased a new building in Santa Monica from Astellas Pharma Inc. that will be used for cell therapy research, development and the expansion of clinical manufacturing capabilities, and has leased a 26,000 square-foot facility in Gaithersburg, Maryland.

In July 2018, it also added Michael Amoroso as Senior Vice President and Head of Worldwide Commercial, Cell Therapy. Mr. Amoroso was leading Ensai’s American commercialization of oncology business; but more importantly, he worked at Celgene on several oncology roles before serving as Commercial Lead, Global Marketing for Celgene’s CAR T programs. His current title is CMO of Kite.

In April 2019, Kite announced plans for a new 20-acre site in Frederick County, Maryland. Kite bought the 20-acre Urbana site in November 2018 for $7.5 million. The facility will have 62,000 square feet of office space and 217,000 square feet of manufacturing, plant, and shipping space.

Source: fiercepharma, Frederick County Office of Economic Development

On Gilead’s 2019 1st quarter earnings call, its new CEO said they will separate Kite into its own business unit.

In July 2019, Kite announced that Christi L. Shaw will join as CEO of Kite. Ms. Shaw was serving as Senior Vice President of Eli Lilly &. Co., and President of Lilly Bio-Medicines.

Later in July 2019, Kite announced plans for a new 67,000-square-foot facility in Oceanside, California, dedicated to the development and manufacturing of viral vectors, a critical starting material in the production of cell therapies. The facility will go live in the second half of 2021.

CAR-T Therapies: 2+ Years Into Commercialization (1)

Approvals and Acquisition

Back in 2017, when Kymriah by Novartis was first approved by FDA, it marked the beginning of commercializing CAR-T cell therapies in the US.

KYMRIAH (kim rye uh)

CAR-T therapies have shown superior effects in treating blood cancers. Kymriah’s initial approved indication is B-cell precursor ALL that is refractory or in second or later relapse for patients up to 25 years of age. There are approximately 3,100 patients aged 20 and younger are diagnosed with ALL each year; 15-20 percent of pediatric B cell precursor ALL patients relapse after their initial remission.

On Aug 28, 11 days after Kymriah’s approval, another CAR-T cell therapy company Kite Pharma was acquired by Gilead for $11.9 billion. The $180.00 per share acquisition price represents a 29% premium to Kite’s closing on Friday, August 25, and a 50% premium to the company’s 30-day volume weighted average stock price.

At the time of acquisition, Kite’s lead candidate was under FDA’s priority review and had submitted the first CAR-T therapy application in Europe for the treatment of relapsed/refractory DLBCL, TFL and PMBCL with the European Medicines Agency (EMA).

On Oct 18, FDA approved Kite’s Yescarta for use in adult patients with large B-cell lymphoma after at least two other kinds of treatment failed, including diffuse large B-cell lymphoma (DLBCL), primary mediastinal large B-cell lymphoma, high grade B-cell lymphoma and DLBCL arising from follicular lymphoma. DLBCL is the most common type of NHL in adults, with 24,000 new cases diagnosed each year in the US (1/3 of newly diagnosed NHL).

YESCARTA® logo

Concurrently, in Gilead’s press release, it estimated that in the US each year there are approximately 7,500 patients with refractory DLBCL who are eligible for CAR T therapy.

In May 2018, FDA expanded Kymriah’s approval for adults with relapsed or refractory large B-cell lymphoma as well.

In August 2018, Yescarta received European Marketing Authorization for adult patients with relapsed or refractory DLBCL and PMBCL, after two or more lines of systemic therapy; Kymriah was approved in EU for the treatment of pediatric and young adult patients up to 25 years of age with B-cell acute lymphoblastic leukemia (ALL) that is refractory, in relapse post-transplant or in second or later relapse; and for the treatment of adult patients with relapsed or refractory (r/r) diffuse large B-cell lymphoma (DLBCL) after two or more lines of systemic therapy.

In March 2019, Japan’s Ministry of Health, Labor and Welfare (MHLW) has approved Kymriah (tisagenlecleucel) for the treatment of two distinct indications – CD19-positive relapsed or refractory (r/r) B-cell acute lymphoblastic leukemia (ALL) and CD19-positive r/r diffuse large B-cell lymphoma (DLBCL).


Clinical Trails and Data

r/r ALL

Kymriah was first approved by FDA based on 82.5% overall remission rate (ORR) reported at 3 months, of which all were MRD– (n=52/63).

  • lower limit of the 95% confidence interval for ORR is 70.9%, which is above the pre-set null hypothesis rate of 20%
  • 40 subjects (63.5%) had the best response of CR within the first 3 months after infusion
  • 12 subjects (19.0%) had the best response of CRi.
  • Among the 52 responders, the median duration of response (DOR) was not yet reached (range: 1.2 to 14.1+ months) with the median follow-up of 4.8 months.
  • 84% (n=57) experienced Grade 3 or higher events
  • Cytokine release syndrome (CRS) occurred in 79% of patients; CRS Grade 3 or higher occurred in 49% of patients

On ASH 2018, Novartis presented an updated ORR rate of 82.3% (n=65/79); relapse-free survival was 62% at 24 months.

ORR and MRD Remission

r/r DLBCL

Yescarta was approved in 2017 based on an ORR of 72% (n=73/101), with a CR rate of 51%. SAEs Grade 3 or higher occurred in 48 (44%) patients. CRS occurred in 94% of patients; CRS Grade 3 or higher occurred in 13% of patients.

On ASH 2019, Gilead provided updates on ZUMA-1 that median overall survival (OS) was 25.8 months.

When Kymriah was approved for r/r DLBCL in 2018, the overall response rate (ORR) was 50% at 3 months (n=34/68). On ASH 2019, in the 24-month analysis of the JULIET trial, ORR was 52% (N=115).

Suntory And Whisky (2)

Current Availability

Suntory’s whiskies, especially Yamazaki, has been in shortage in the past few years; the prices have been increasing constantly.

Source: asia.nikkei.com

This week, Suntory unveiled a limited edition 55-year-old Yamazaki single malt whisky, which it will sell for 3 million yen ($27,347.31) a bottle. Only 100 bottles will be sold from June 30, and buyers will be chosen by lottery. Blended from whisky matured in mizunara and white oak casks, the edition will be the oldest version of Yamazaki.

The company in 2005 sold a limited edition of a 50-year-old Yamazaki for 1 million yen. One of them auctioned by Bonhams in Hong Kong in 2018 fetched HK$2.695 million.

In May 2018, it was reported that sales of Hakushu 12 Year and Hibiki 17 Year to be suspended in Jun 2018. Suntory said the demand was far outstripping supply and distillers were not being able to produce enough of it.

Before that, the demand for the Hibiki 12 year has become unsustainable and in 2015 Suntory announced it would be discontinuing the expression.

Currently the most commonly seen versions for Yamazaki are 12yr, 18yr, 30yr and Distiller’s Reserve (no age).

Image
Source: whisky.suntory.com

The Distiller’s Reserve version was launched in 2014, containing a range of liquid aged from around eight to 20 years. Blended by Suntory chief blender Shinji Fukuyo, the Yamazaki Distiller’s Reserve is a vatting of whisky matured in French oak Bordeaux wine casks, Sherry casks, mizunara casks (Japanese oak) and American oak casks, with some peated malt added. [thespiritsbusiness]


Awards (Whisky Bible: WORLD WHISKIES OF THE YEAR)

  • 2016: Suntory Yamazaki Mizunara (Bot.2014) (ranked 5th our of 5 picks)
  • 2015: The Yamazaki Single Malt Sherry 2013 (ranked 1st out of 3 picks)

Awards (World Whiskies Awards)

  • 2019 WORLD’S BEST BLENDED WHISKY – Hibiki 21 Years Old
  • 2018 WORLD’S BEST SINGLE MALT – Hakushu 25 Years Old
  • 2017 WORLD’S BEST BLENDED – Hibiki 21 Years Old
  • 2016 WORLD’S BEST BLENDED – Hibiki 21 Years Old

Awards (International Spirits Challenge, Gold)

Yamazaki

  • 2007 – The YAMAZAKI Single Malt Whisky 18 years old
  • 2009 – Yamazaki 1984
  • 2010 – The YAMAZAKI single malt whisky 12YO
  • 2010 – The YAMAZAKI single malt whisky 18YO
  • 2011 – The Yamazaki Single Malt Whisky 1984
  • 2012 – The Yamazaki Single Malt Whisky Aged 18 Years
  • 2013 – The Yamazaki single malt whisky Puncheon 2012
  • 2013 – The Yamazaki single malt whisky Mizunara 2012
  • 2013 – The Yamazaki single malt whisky 18 Years Old
  • 2014 – THE YAMAZAKI SINGLE MALT WHISKY MIZUNARA 2013
  • 2014 – THE YAMAZAKI SINGLE MALT WHISKY BOURBON BARREL 2013
  • 2014 – THE YAMAZAKI SINGLE MALT WHISKY 18 YEARS OLD
  • 2015 – THE YAMAZAKI SINGLE MALT WHISKY MIZUNARA 2014
  • 2017 – The Yamazaki Single Malt Whisky Limited Edition 2016
  • 2018 – THE YAMAZAKI SINGLE MALT WHISKY 12 YEARS OLD
  • 2018 – THE YAMAZAKI SINGLE MALT WHISKY 18 YEARS OLD
  • 2019 – THE YAMAZAKI SINGLE MALT WHISKY MIZUNARA 2017 EDITION

Hakushu

  • 2008 – Single Malt Whisky “Hakushu” aged 25 years
  • 2009 – Hakushu 18 y.o.
  • 2010 – The HAKUSHU single malt whisky 25YO
  • 2010 -The HAKUSHU single malt whisky HEAVILY PEATED
  • 2011 – The Hakushu Single Malt Whisky Bourbon Barrel
  • 2012 – The Hakushu Single Malt Whisky Aged 25 Years
  • 2012 -The Hakushu Single Malt Whisky Aged 12 Years
  • 2012 – The Hakushu Single Malt Whisky Sherry Cask (12 years old and under)
  • 2013 – The Hakushu single malt whisky Heavily Peated 2012
  • 2013 – The Hakushu single malt whisky 25 Years Old
  • 2013 – The Hakushu single malt whisky 18 Years Old
  • 2014 – THE HAKUSHU SINGLE MALT WHISKY SHERRY CASK 2014
  • 2014 – THE HAKUSHU SINGLE MALT WHISKY 25 YEARS OLD
  • 2014 – THE HAKUSHU SINGLE MALT WHISKY 18 YEARS OLD
  • 2015 – THE HAKUSHU SINGLE MALT WHISKY 25 YEARS OLD
  • 2016 – The Hakushu Single Malt Whisky 25 Years Old
  • 2016 – The Hakushu Single Malt Whisky 18 Years Old
  • 2017 – The Hakushu Single Malt Whisky 25 Years Old
  • 2017 – The Hakushu Single Malt Whisky 18 Years Old
  • 2019 – THE HAKUSHU SINGLE MALT WHISKY 25 YEARS OLD
  • 2019 – THE HAKUSHU SINGLE MALT WHISKY 18 YEARS OLD

Hibiki

  • 2009 – Hibiki 17 y.o.
  • 2010 – SUNTORY Whisky HIBIKI 12YO
  • 2010 – SUNTORY Whisky HIBIKI 21YO
  • 2012 – Hibiki Japanese Blended Whisky Aged 21 Years
  • 2012 – Hibiki Japanese Blended Whisky Aged 17 Years
  • 2013 – Hibiki Japanese Blended Whisky aged 17 years
  • 2013 – Hibiki Japanese Blended Whisky aged 12 years
  • 2014 – HIBIKI JAPANESE BLENDED WHISKY DEEP HARMONY
  • 2014 – HIBIKI JAPANESE BLENDED MELLOW HARMONY
  • 2015 – HIBIKI JAPANESE BLENDED WHISKY AGED 12 YEARS
  • 2016 – Suntory Whisky Hibiki 17 Years Old
  • 2016 – Suntory Whisky Hibiki Mellow Harmony
  • 2017 – Suntory Whisky Hibiki Japanese Harmony Master’s Select
  • 2019 – SUNTORY WHISKY HIBIKI JAPANESE HARMONY Master’s Select

Chita

  • 2017 – Suntory Single Grain Whisky Chita Distillery

Suntory And Whisky (1)

A History of Suntory’s Three Whisky Distilleries

The founder of Suntory, Shinjirō Torii (born in 1879), started with selling imported wine in Osaka in 1899.

Incorporation – the store became the Kotobukiya company in 1921.

In 1923, the Yamazaki Distillery was constructed – Japan’s first malt whisky distillery. It was built in the town called Yamazaki 山崎町 (now in Shisō 宍粟市, Hyōgo 兵库县), on the periphery of Kyoto. This region was formerly referred to as “Minaseno”, where one of the purest waters of Japan originates. Yamazaki Distillery is where the Katsura, Uji and Kizu rivers converge, providing a unique misty climate and one of Japan’s softest waters. The diversity of this region’s temperature and humidity creates ideal conditions for cask aging, known as the signature “Suntory Maturation”.

Source: whisky.suntory.com

Production began in 1924 and five years later it launched Japan’s first single-malt whisky Suntory Whisky Shirofuda (white label) in 1929.

Keizo Saji (Torii’s son) becomes 2nd president in 1961 (at age of 42); Shinjirō Torii passed away in 1962.

In 1963, Kotobukiya changed its name to “Suntory” from “Torysan”, taken from the name of the whisky it produces.

In the same year, Musashino Beer Factory (in Fuchū 府中市, Tokyo 东京都) began its production of the Suntory Beer.

In 1972, Keizo built Chita Distillery on the shores of Chita Peninsula (Chita 知多市, Aichi 爱知县).

Source: whisky.suntory.com

In 1973, Hakushu Distillery was established, in the Toribara locality of the former town of Hakushū 白州町 (now part of Hokuto 北杜市 in Yamanashi 山梨县), It is located in the foothills of Mt. Kaikomagatake.

Source: whisky.suntory.com

1980s – Distilleries Becoming Brands

Until the 1980s, whisky made at Yamazaki was bottled as Suntory blends. It began to market their distilleries in the way the Scottish market theirs, by branding the whisky for the distillery at which it is made. [Japanese Whisky Handbook by Gary Clark]

Saji pioneered the distillery’s move into single malt whisky in 1984, with the launch of Suntory Single Malt Whisky Yamazaki – the first time Yamazaki is used as the brand name. This was followed by Yamazaki 18 Years Old in 1992. [thespiritsbusiness]

In 1989, the 90th anniversary of the company’s founding, Suntory Hibiki was released. It is a blended whisky using whiskies from the three distilleries Yamazaki, Hakushu, and Chita.

Source: whisky.suntory.com

Shinichiro Torii becomes the 3rd president in 1990.

In 1994, Hakushu Single Malt Whisky is launched.

In 2003, the Yamazaki 12 Years single malt whisky became the first Japanese whisky to win the gold medal at the International Spirits Challenge, the most authoritative liquor competition in the world.

Source: whisky.suntory.com

A Python Generated Graph On Airlines’ Load Factors

Major airlines usually would post their monthly operation results on IR websites. While United Airlines and Southwest Airlines among other stopped reporting in 2019, Alaska and Delta are still doing so.

Load factor is a measure of the use of aircraft capacity that compares Revenue Passenger-Miles as a proportion of Available Seat-Miles.

Below is a three-part project that automatically downloads, summarizes and creates chart for 4 airlines’ load factor.


Download

Given certain years, the program will go through pre-defined links to search for monthly report urls and scrap relevant data based on the page structure. BeautifulSoup is used here.

Summary

The program uses file reading and writing to put four airlines’ data together while adjusting for missing data (aligning based on month)

Charting

The program converts csv to excel and draws the chart based on data. pandas and xlsxwriter are used here.


With some adjustments, the program should be able to scrape and virtualize other web-based standard reports.

 

 

China Drugstores: # Of Stores, Drugstore Chains, Share Of Top 10 Chains

The independent drugstores will find it harder to compete and the percentage of drugstore chain’s locations will steadily increase.

The “50% chain rate by 2020” target was set in 2016. In US and Japan, the percentage of chain stores is over 70%.

Source: www.sfdaic.org.cn/statistics

The market share in sales for top chains keeps increasing, as their sales grow faster than industry average.

Source: 中国药店,中信证券

* the total drug retail sales data is a little different from the previous post China Medicine End Market Sales (2018: 391.9 vs. 400.2 billion RMB, 2% higher in this report)

China Medicine End Market Sales Data

Data estimated by 米内网 (menet.com), which was formerly 中国医药经济信息网, created in 1997 by (formerly) CFDA Southern Research Institute.

According to the data, the overall end market sales grew 6.3% to 1713 billion yuan (or ~$250 billion) in 2018.

Retailer channels continues to grew at above-GDP rate (7.5% in 2018).

The data is not including sales in private hospitals/clinics, etc. The overall sales would be 2 trillion yuan for 2018 if included.