Deerfield Closes $840 Million Healthcare Venture Fund

The Deerfield Healthcare Innovations Fund ll will invest in advancements in science for promising therapeutics and to improve ways healthcare is delivered to patients

(New York, NY, April 6, 2020)—Deerfield Management Company, L.P. today announced the closing of the Deerfield Healthcare Innovations Fund ll, L.P., which will invest in advancements in science that may lead to important therapeutic interventions and back new technologies and infrastructure to improve the way healthcare is delivered to patients.

“Now more than ever, these unprecedented times underscore the importance of supporting the critical work of our nation’s scientists and healthcare systems,” said James E. Flynn, managing partner of Deerfield. “Our uniquely supportive model allows us to provide leverage to innovative companies and accelerate the benefit to patients.”

The Healthcare Innovations Fund II will collaborate with more than 15 leading academic institutions to seed novel scientific research. The Fund also has access to innovative medtech incubators created in partnership with two medical device industry leaders.

The Cure, the recently announced innovation campus located at 345 Park Avenue South, will become the central location of Deerfield where much of the work of the Healthcare Innovation Fund II will take place. Many of the early-stage companies will utilize the Cure’s wet and dry labs, engineering, computing and shared resource spaces.

The companies will also benefit from on-site programming, including the Fellows Program, Break into the Boardroom and Women in Science. Newly curated programs to be featured involve the “Cure Lounge,” a thought leadership and executive club, and other educational and certification initiatives.

The Deerfield Healthcare Innovations Fund ll is supported by the entire Deerfield infrastructure. 

Deerfield has been investing in and supporting the healthcare industry for more than 25 years, and partner companies benefit from its organizational capabilities.

Today, Deerfield has more than 130 experienced healthcare-focused professionals with specialized knowledge in medicine, life sciences, drug and medical device development, healthcare markets, public policy, value-based care, financial instruments, tax, accounting, operations, corporate strategy, market access research, marketing, biostatistics and sector dynamics, all of which can be leveraged by its partners.

Together, Deerfield team members fully fund and manage the Deerfield Foundation, which to date has committed or invested over $49 million to global organizations seeking to improve the delivery of healthcare, with a focus on underserved children. The Deerfield Foundation recently committed approximately 10 percent of its 2020 fiscal budget toward COVID-19 emergency funding to organizations in need of urgent resources in order to provide care to their communities.


About Deerfield Management 

Deerfield is a healthcare investment management firm committed to advancing healthcare through investment, information and philanthropy.

Contact:

Media
Deerfield Management
Karen Heidelberger, 212-692-7140
[email protected]

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Deerfield Management Advanced Healthcare Initiatives Globally Through Academic Collaborations, Publications, and Philanthropy

In addition to advancing healthcare through investment, Deerfield’s efforts through information and philanthropy have an unprecedented year

New York, NY – February 6, 2019 – Deerfield Management advanced healthcare initiatives globally in 2018 through five new academic collaborations, eight scientific publications, and 22 philanthropic partnerships. Deerfield’s intent is to participate in large scale efforts to enrich patients’ lives with early stage discovery support, novel peer-reviewed insights, and investments that can help tackle the issues affecting healthcare today.

Deerfield Academic Collaborations

In 2016 Deerfield began collaborating with academic institutions to create partnerships that provide funding and support to early stage therapeutics. Since then, Deerfield has developed nine companies across eight states developing expeditious pathways from concept to commercialization for novel therapeutic discoveries and one incubator focused on innovative cardiovascular devices.

Anticipating commitments of over $500 million in early stage research by 2021, Deerfield is uniquely positioned to support all stages of development from early stage to commercial opportunity. This capability has the potential to eliminate the hurdles researchers would face in finding new capital during this rigorous trajectory to the marketplace.

Deerfield Institute

Deerfield Institute’s research capabilities and survey analyses sparked the need to begin publishing its scientific findings for the greater good. Since 2015, the Deerfield Institute has published 50 articles,editorials, and abstracts. Whether it is identifying predictors of laparoscopic hysterectomy among leiomyoma patients or exposing the variability in the therapeutic management of advanced ovarian cancer patients, the publications are weighted in scientifically driven research and analysis and leverage the knowledge interpreted by Deerfield’s team of healthcare focused researchers.

“We have a sense of responsibility to share our insights and equip our ecosystem with the high quality, novel information required to accelerate and improve healthcare,” stated Alexis Cazé, partner and chief information officer at Deerfield. “Through collaboration, we ultimately increase the greater potential of improvement in the healthcare system.”

Deerfield Foundation

Since inception the Foundation has committed or invested approximately $40 million to 39 philanthropic partners that impact healthcare for children and families from underserved communities. In 2018, the Foundation reached 11 countries with 77% of its annual funding directed towards services,goods, and outreach, 12% to infrastructure and 11% to R&D.

The Foundation has recently been exploring new models and is increasingly interested in designing granting programs with measurable impact.Whether this means pay-for-performance or key performance indicators, creating business models that lead to a self-funding business can result in self-sustaining organizations that can thrive in any philanthropic environment. “Deerfield realized the importance of exploring pay-for-performance models by pioneering our Results Based Financing for Community Health pilot,” stated Lisa McCandless from Living Goods. “Since Deerfield’s commitment, Living Goods has propelled to the forefront of this initiative globally and continues to share its learnings and findings with the broader community.”A list of our academic collaborations from 2016 to 2018 are below:

  1. Center for Protein Degradation with Dana-Farber Cancer Institute
  2. Pinnacle Hill with the University of North Carolina at Chapel Hill
  3. Poseidon Innovation with UC San Diego
  4. Lakeside Discovery with Northwestern University
  5. Ancora Innovation with Vanderbilt University
  6. Academic collaboration with Broad Institute of MIT and Harvard
  7. Bluefield Innovations with the Johns Hopkins University
  8. Bridge Medicines with Memorial Sloan Kettering Cancer Center, the Rockefeller University, and Weill Cornell Medicine
  9. Vescor with the University of Texas MD Anderson Cancer Center

A sample of the peer reviewed publications, reviews and abstracts published in 2018 are listed below:

  1. A Hybrid Approach for Prediction of Event Times in Double-Blind Clinical Trials. Ming Zhu, Yunnan Xu, Zheng Su. Joint Statistical Meeting 2018
  2. Predictors of laparoscopic hysterectomy for leiomyoma surgical removal in the United States. Kate Busko, Mark Stuntz. Value in Health / ISPOR
  3. Analysis of Success Rates for the Center for Medicare and Medicaid’s New Technology Add-On Payment Program. Alexandra Truglio, Christine Livoti. Value in Health / ISPOR
  4. Trends in isolated mitral valve surgery: the changing risk profile of patients and outcomes. Andrew Elbardissi, Mark Stuntz. European Society of Cardiovasculaire and Endovasculaire Surgery International Congress 2018
  5. The importance of emerging transcatheter mitral valve technologies in cost-effectiveness and post-procedure outcomes. Andrew Elbardissi, Mark Stuntz. European Society of Cardiovasculaire and Endovasculaire Surgery International Congress 2018
  6. Impact of adverse media reporting on public perceptions of the doctor-patient relationship in China: an analysis with propensity-score matching. Jing Sun, Shiyang Liu, Qiannan Liu, Zijuan Wang, JunWang, Cecile Jia Hu, Mark Stuntz, Jing Ma, Yuanli Liu. BMJ Open, August 2018
  7. Potential role of emerging percutaneous mitral technologies in patients undergoing TAVR. Andrew ElBardissi, Mark Stuntz. JACC, September 2018
  8. Futility stopping in non-inferiority trials. ZhengSu, Mark Stuntz. Contemporary Clinical Trials Communications, December 2018.


In 2018, the Deerfield Foundation invested in the following projects with its philanthropic partnerships:

  1. Children’s Health Fund. Deerfield Child and Family Health Clinic and New York Program,providing high quality, comprehensive and compassionate patient-centered healthcare for underserved children and families.
  2. Coalition for the Homeless. Child Advocate to assist homeless families in New York City.
  3. Covenant House. Wellness center support: medications/supplies, mental health services,and staff training on mental health and best practices.
  4. Jacaranda Health. Support launch of a “nurse mentor training center” to build a pipeline of public sector maternity nurse champions and improve obstetric care in Kenya.
  5. Last Mile Health. Continue scale-up of Liberia’s National Community Health Assistant Program, cost-effectiveness study in Grand Bassa County and launch of the Community Health Academy’s first online, free, digital training course for community health system leaders.
  6. Little Sisters of the Assumption Family Health Service. Environmental Health Services Program and Maternity Outreach Program.
  7. Living Goods. Digital optimization of business practices – enabling transformational scale for community health.
  8. Lwala Community Alliance. Every child: strengthening health systems to reduce maternal and child mortality.
  9. Many Hopes. Provide physical and mental healthcare as well as a nutritious diet for orphans and abandoned children in its rescue homes and school.
  10. Medic Mobile. Scaling digital health tools for improved community-level care coordination in Nepal.
  11. Mifanmama. Eye Care Outreach Program.
  12. Muso. Proactive care delivery: rigorous implementation of research to save lives and support Mali’s National Community Health Worker scale-up.
  13. Northside Center for Child Development. Expand Northside’s capability to treat mental health issues in children age five and under.
  14. Partners In Health (Zanmi Lasante). Operating costs for Zanmi Beni Children’s home.
  15. Possible. Designing and scaling accessible, integrated healthcare solutions for underserved communities in Nepal.
  16. Réseau Des Entrepreneurs Solidaires. Deerfield RES Madagascar: support approximately 31 medical centers and dispensaries run in Madagascar.
  17. St.Boniface Haiti Foundation. Materials and staffing for the pediatric services ward of the St. Boniface Hospital in Fond des Blancs, Haiti.
  18. Sustainable Health Enterprises. Initial funding of SHE28’s technological innovations to produce go! pads for girls and women.
  19. The Family Center. Training and certification of six clinical staff members in Parent Child Interaction Therapy.
  20. The Mott Haven Academy. PNP services and medical clinic support, and contributions to establish and develop adolescent health programming in its middle school.
  21. The Water Trust. Scaling-up the Self-Help Group Program and publishing findings to provide children in East Africa safe water and healthy homes.
  22. Village Health Works. Equipping the pediatric and maternity unit of the Kigutu Hospital and Women’s Health Pavilion.

About Deerfield

Deerfield is an investment management firm committed to improving healthcare through investment, information and philanthropy.

For more information, please visit www.deerfield.com

Contacts

Deerfield Management Company
Karen Heidelberger,212-551-1600
[email protected]

Stelexis Therapeutics Closes $43 million Series A to Expand Novel Platform Focused on Cancer Interception

Stelexis is a Deerfield founded and solely funded company

New York, NY – January 7, 2019 – Stelexis Therapeutics, LLC announced that it closed a $43 million Series A financing to expand its proprietary platform to discover and selectively target pre‐cancerous stem cells. Deerfield established Stelexis in 2017 together with scientific founders, Ulrich Steidl, Evripidis Gavathiotis, Amit Verma, and Roman Perez‐Soler of Albert Einstein College of Medicine, Montefiore Health, New York and Derrick Rossi of Boston Children’s Hospital, Harvard Medical School. Patrick Doyle serves as the founding CEO, and Keren Paz is the CSO of Stelexis.

Stelexis’ proprietary drug discovery platform identifies the earliest definable pre‐cancerous stem and progenitor cells that lead to the formation of human primary and recurrent tumors for therapeutic intervention and relapse prevention. Stelexis’ mission is to develop novel cancer drugs that selectively target these critical pre‐cancerous events related to both hematopoietic and solid malignancies.

“The ability to identify, isolate, study and screen rare pre‐cancerous stem cells, from within bulk tumors, is an enormous breakthrough that has the potential to change how cancer patients are treated” stated Dr. Steidl. “Our thesis is that targeting cancer at its very origin should not only be effective as first line therapy, but should also lead to long‐lasting remission for patients,” said Dr. Rossi, who, prior to co‐founding Stelexis, has also co‐founded numerous other successful biotechnology companies.

Utilizing Deerfield seed funding and operational support since 2017, Stelexis has established its labs in Albert Einstein College of Medicine facilities, hired key management and is poised to deliver clinical trial data that validate its platform using the proceeds of this Series A round.

“We are thrilled to announce the formation and funding of Stelexis, which has the platform technology to explore the role pre‐cancer conditions play in cancer development and recurrence. The team has an outstanding track record and we look forward to a stream of transformative cancer medicines,” stated Dr. Robert Jackson, director at Stelexis and partner at Deerfield Management.

“Deerfield’s holistic approach to forming, funding and providing operational support to Stelexis has been instrumental in creating a leadership position in a novel targeted approach to treating cancer,” said Patrick Doyle, CEO of Stelexis. “With these funds we are now positioned to execute on our potential to transform patients’ lives.”

About Stelexis

Stelexis is a New York‐based cancer therapeutics company, utilizing its proprietary platform to selectively target pre‐cancerous stem cells to discover and develop transformative therapies.

For more information, please visit www.stelexis.com

About Deerfield

Deerfield is an investment management firm committed to improving healthcare through investment, information and philanthropy.

For more information, please visit www.deerfield.com

Contacts

Deerfield Management Company
Karen Heidelberger
212‐551‐1600   
[email protected]

Stelexis Therapeutics
Patrick Doyle
[email protected]

Dana-Farber Cancer Institute and Deerfield Collaborate to Create the Center for Protein Degradation

  • The Center for Protein Degradation will build upon the work of Dana-Farber researchers Nathanael Gray, PhD and Eric Fischer, PhD
  • Deerfield Commits up to $80 million as well as Operational and Managerial Support

Boston, MA and New York, NY – November 13, 2018 – Dana-Farber Cancer Institute and Deerfield Management announced today an up to $80 million collaboration to create the Center for Protein Degradation at Dana-Farber. The goal of the Center for Protein Degradation is to interrogate and advance a large portfolio of advanced targeted protein degrader targets while creating a next-generation protein degrader platform. The platform will utilize knowledge created while interrogating the targets and will continue to advance the science of targeted protein degradation of additional members of the proteasome for therapeutic benefit.

The new Center for Protein Degradation will be led by Dr. Nathanael Gray and Dr. Eric Fischer, both world-renowned scientists, while operational support, management expertise and initial funds will be contributed by Deerfield. Additional funding for therapeutic targets will be provided by Deerfield upon successful proof-of-concept studies.

Current targeted protein degraders work by directing a protein of interest to the proteasome where it is broken down into smaller polypeptides. Protein degradation serves multiple purposes and can be used to interrogate basic biology or eliminate a protein that is implicated in disease initiation or progression from a cell for an extended period of time. This approach may provide more robust therapeutic effects due to complete elimination of protein function as compared to classical small molecule protein inhibitors that target a particular catalytic activity. The Center for Protein Degradation will focus on development of efficient approaches for discovering and optimizing new small molecule degraders and in identifying the biological targets most tractable for this approach.

The Center for Protein Degradation will solicit collaborations from the Dana-Farber and Harvard Medical School community to explore degradation concepts across a wide range of targets and disease settings. Projects will move through a tiered system from proof of concept, to validation in preclinical models and towards clinical development.

“We are excited about exploring the promise of protein degradation with Deerfield and appreciate the substantial commitment it is making to this enterprise,” said Laurie H. Glimcher, MD, president and CEO of Dana-Farber. “This new Center for Protein Degradation will be a critical focal point in a vibrant community of accomplished scientists and investigators.”

“In creating the Center for Protein Degradation, we can advance science and identify multiple novel therapeutics targeted at ending cancers. We are thrilled to be collaborating with Dr. Gray, Dr. Fischer and the entire Dana-Farber team in this first of its kind collaboration,” stated James Flynn, managing partner at Deerfield.

“Protein degradation is potentially a key to unlocking cures for cancer,” commented William Slattery, partner at Deerfield. “The examination of targets with this expertise will create a pathway that goes beyond the normal confines of drug development.”

Paul Hastings, LLP acted as legal counsel to Deerfield. Dana-Farber Cancer Institute was represented by Wolf, Greenfield and Sacks, P.C. and McDermott Will & Emery.

About Dana-Farber

From achieving the first remissions in childhood cancer with chemotherapy in 1948, to developing the very latest new therapies, Dana-Farber Cancer Institute is one of the world’s leading centers of cancer research and treatment. It is the only center ranked in the top 4 of U.S.
News and World Report’s Best Hospitals for both adult and pediatric cancer care.

Dana-Farber sits at the center of a wide range of collaborative efforts to reduce the burden of cancer through scientific inquiry, clinical care, education, community engagement, and advocacy. Dana-Farber/Brigham and Women’s Cancer Center provides the latest in cancer care for adults; Dana-Farber/Boston Children’s Cancer and Blood Disorders Center for children. The Dana-Farber/Harvard Cancer Center unites the cancer research efforts of five Harvard academic medical centers and two graduate schools, while Dana-Farber Community Cancer Care provides high quality cancer treatment in communities outside Boston’s Longwood Medical Area.

Dana-Farber is dedicated to a unique, 50/50 balance between cancer research and care, and much of the Institute’s work is dedicated to translating the results of its discovery into new treatments for patients locally and around the world.

About Deerfield

Deerfield is an investment management firm committed to advancing healthcare through investment, information and philanthropy.

For more information, please visit www.deerfield.com

Contacts

Dana-Farber Cancer Institute
Ellen Berlin, 617-632-4090
[email protected]

Deerfield Management Company
Karen Heidelberger, 212-551-1600
[email protected]

Deerfield and Stan Rowe Create a Next Generation Therapeutic Device Incubator, NXT Biomedical

Up to $275 million committed to the development of cutting edge technologies.

New York, NY and Irvine, CA – September 20, 2018 – Deerfield Management and Stan Rowe announce the creation of a next generation therapeutic device incubator, NXT Biomedical. NXT Biomedical expects to invest up to $25 million in cutting edge technologies over the next 5 years.  Deerfield has allotted up to an additional $250 million for the formation and development of five to eight startup companies that emerge from the incubator. 

NXT Biomedical will develop and advance novel therapeutic devices in diseases with significant unmet needs.  Using innovative medical technology development processes, the incubator is designed to develop and de-risk technologies in a highly capital efficient manner.

Prior to cofounding NXT Biomedical, Stan Rowe was Chief Scientific Officer at Edwards Life sciences.  At Edwards, Stan developed and led the Advanced Technology group, which is focused on rapid device iteration, novel research and projects to enhance the pipeline of the Edwards patient-focused innovation portfolio and discovery efforts.  In his new role, Stan will continue as a consultant to Edwards.

“I am thrilled to be leading this incubator with a broad mandate for development of varying types of therapeutic devices, which brings together the expert skill sets of the founding contributors and provides an environment for creativity, innovation and professional management. I have worked with Edwards over the last several months to ensure a smooth transition from my role as CSO at the company to my next chapter leading NXT Biomedical, and I believe this collaborative effort engaging many bright and experienced innovators may spark the success of many technologies,” stated Stan Rowe, CEO of NXT Biomedical.

Stan will be joined by Robert Schwartz, MD, an interventional cardiologist who has been a prominent inventor as well, and a team of experienced engineers with unique expertise in early stage device design and development. 

Andrew ElBardissi, MD, Principal at Deerfield said, “In an era of dwindling medical device early stage investment, we continue to see major unmet needs that can be optimally treated with next generation medical technologies.  We are elated to join Stan and his team to develop and advance clinically meaningful devices that are poised to improve outcomes and reduce cost to the healthcare system.”

Steve Hochberg, Partner at Deerfield said, “NXT Biomedical provides an exciting new pathway for exceptional science to be incubated with the world-renowned leadership of Stan Rowe and Robert Schwartz, MD.  In addition, given some of the therapeutic areas of interest to NXT Biomedical, we are also exploring potential collaborations with unnamed strategic partners.  As we advance these opportunities, we are looking forward to supporting each project with financial, operational and managerial expertise.”

NXT Biomedical is based in Irvine, California at the Cove @ UCI Applied Innovation.

About Deerfield

Deerfield is an investment management firm committed to advancing healthcare through investment, information and philanthropy.

For more information, please visit www.deerfield.com

Contacts

Deerfield Management Company
Karen Heidelberger, 212-692-7140
[email protected]

Deerfield and EuropaBio Publish a Report on Regulatory and HTA Scientific Advice for Small and Medium Enterprises

NEW YORK & BRUSSELS–(BUSINESS WIRE)– EuropaBio, the European Association for Bioindustries, and the Deerfield Institute have partnered to carry out a survey on the current state of regulatory and health technology assessment (HTA) advice with a special focus on small and medium sized enterprises (SMEs). The findings suggest early regulatory scientific and HTA advice may help SMEs to better prepare and manage their clinical programs toward facilitating both regulatory approval and positive HTA recommendations,and therefore contribute to their increased competitiveness.

Main findings

“Despite agreement amongst all stakeholders that early interactions between regulatory, HTA authorities and SMEs would be positive, ensuring that these interactions actually take place is not straightforward. Given that many SMEs focus on the early stage of development and can be quite limited in terms of personnel and resources, the process of seeking such advice can be perceived as lengthy,formal, and cumbersome”, said Miriam Gargesi, Director for Healthcare Biotechnology at EuropaBio. However, the findings also show that both the authorities and the SMEs acknowledged the need to become more flexible, and to diversify and increase the number of interactions between them.

“Early dialogue activities have the potential to reduce drug development uncertainties related to regulatory and HTA assessments. While existing HTA scientific advice programs have made a good start and EuropaBio member companies have reported positive experiences so far, there are a number of other needs to be met,particularly in the areas of information, training and coordination”, said Paolo Morgese, Director of European Research for the Deerfield Institute and Chair of EuropaBio’s HTA Topic Group.

Background

Phase III clinical trials are the last and vital development step before submitting healthcare biotech products for approval. While the costs for these trials are rising, the success rate is still 50% at phase III, according to the UK’s Centre for Medicines Research. Success at phase III clinical trials is not the end of the story, as drugs will still have to go through regulatory and HTA evaluation processes before being accessible to European patients. Reviews from the European Medicines Agency, and to a larger extent from HTA authorities,have proven to be a significant challenge for biotech SMEs, often resulting in very limited access to new biotech drugs.

Against this context and the resulting significant financial burden incurred during phase III clinical trials, companies, regulatory and HTA authorities are starting to work together at earlier stages of drug development in order to make drug development more efficient. This could eventually help companies better understand what data the authorities need earlier in the process, thus leading to better designed clinical trials and fewer drugs failing at the approval stage, or not being reimbursed.

The full report is available on the websites of Deerfield (http://goo.gl/hR1aUM) and Europabio (http://goo.gl/VkdpZZ

About EuropaBio

EuropaBio is the European Association of Bio Industries. EuropaBio members are involved in research, development, testing, manufacturing and commercialization of biotech products and processes in human and animal healthcare, diagnostics, bioinformatics, chemicals, crop protection, agriculture, food and environmental products and services. EuropaBio also counts a number of National Biotech Associations in its membership, who in turn represent more than 1800 biotech SMEs.

For more information, please visit: www.europabio.org

About Deerfield

The Deerfield Institute is the research and analytics group of Deerfield, an investment organization with the mission of advancing healthcare through investment, information and philanthropy. Comprised of over 30 researchers based in the US, Switzerland and China, the Deerfield Institute focuses on analyzing the healthcare industry through many dimensions including market research, market access, biostatistics, intellectual property, clinical and regulatory evaluation.For more information on the Deerfield Institute, please visit: http://www.deerfield.com/DI

Contacts

Deerfield Management Company
Karen Heidelberger, 212-692-7140
[email protected]