January 8, 2015
By Riley McDermid, BioSpace.com Breaking News Sr. Editor
The worst has come to pass for some workers at biotech darling InterMune , who will be losing their jobs after new acquirer Roche said it will be consolidating its operations and will lay off 170 of the company’s workers by mid-February. Roche did not comment on what other operations may be streamlined in the process.
That will leave InterMune with around Brisbane, Calif.-based 280 workers, most of whom are waiting anxiously to see if Roche, the parent company of another Bay Area biotech favorite, Genentech, will keep them on in their current positions. Analysts and investors alike have lauded the acquisition as a good fit and haven’t had any problems with possible consolidations across silos.
“I think a major game-changer in 2014 was Genentech/Roche complementing their outstanding discovery capabilities with a solid M&A strategy, focused around Seragon, InterMune, and NewLink,” told BioPharma Dive in December.
In related news, InterMune Chief Executive Officer Dan Welch hasn’t wasted any time capitalizing on the company’s $8.3 billion sale to Swiss drugmaking giant Roche, announcing Thursday that he would become an executive partner at Silicon Valley venture capital shop Sofinnova Ventures, which specializes in VC investments all across the biotech and healthcare sectors.
“I have had the opportunity to work with many members of the Sofinnova team throughout my career. We share a strong commitment to developing innovative therapeutics and companies that can address unmet medical needs and create value for investors,” said Welch in a statement. “I’m very pleased to join them and look forward to contributing to the firm’s continued success.”
InterMune began attracted interested from Big Biotech companies two years ago for its pipeline, and Roche’s bet on it paid off when the U.S. Food and Drug Administration gave idiopathic pulmonary fibrosis drug Esbriet the stamp of approval a scant two weeks after the sale in October. A course of Esbriet, which helps provide significant relief for patients with the fatal lung disease, costs around $94,000 annually.
That’s a process that will come in handy for Sofinnova, which recently completed the fundraising effort for its ninth healthcare fund, Sofinnova Ventures IX, which now weighs in at a hefty $500 million. Welch will undoubtedly be involved in deciding which companies receive investments from that fund and his contacts in the sector will be valuable.
“We are excited to have Dan join the Sofinnova team. His knowledge and experience are valued across critical areas of our industry, from clinical stage drug development through to large-scale commercialization, as well as operations and building international businesses. We are confident that our portfolio and performance will benefit from his expertise,” said Jim Healy, Sofinnova General Partner, former InterMune board member and current chairman of Hyperion.
Welch began his biotech career at Adria Laboratories and then joined Sanofi-Synthelabo, eventually becoming chief operating officer and overseeing the launch of Plavix. After that he became president of biopharmaceuticals and diagnostics at Elan Corporation in 2000, including raking in 2002 revenues of over $1.2 billion and over 2,400 employees globally. From there, Welch leapt to Triangle Pharmaceuticals as chairman and CEO where he shepherded HIV drug Emtriva through the regulatory process, before Triangle was acquired by Gilead Sciences, Inc. for $464 million.
Those qualifications will make him a good fit at Sofinnova, said the venture capitalists who will be working with him Thursday.
“We have known and worked with Dan as board members and as business colleagues through a variety of companies and investments. It will be terrific to leverage his business skills, sharp mind and deep network as we support our existing investments and expand our portfolio,” commented Srini Akkaraju, Sofinnova general partner and Seattle Genetics board member.
