The $495 million innovation collaboration between GlaxoSmithKline and early-stage investor Avalon Ventures has produced its first fruits in the form of a company initially focused on treating celiac disease.
Sitari Pharmaceuticals launched today with a $10 million Series A from Avalon and GSK and technology from Stanford University.
It’s still in the early discovery phase, but the technology targets a protein called transglutaminase 2 that appears to be activated when someone with celiac disease ingests gluten. Celiac is a chronic condition characterized by an immune reaction to gluten, a protein found in wheat, rye and barley. The immune response damages the small intestine and interferes with the body’s ability to absorb nutrients from food. Sitari is working on developing target inhibitors of TG2 that would suppress that autoimmune response.
With the Rise of AI, What IP Disputes in Healthcare Are Likely to Emerge?
Munck Wilson Mandala Partner Greg Howison shared his perspective on some of the legal ramifications around AI, IP, connected devices and the data they generate, in response to emailed questions.
Jay Lichter, managing director of Avalon Ventures, said that the market opportunity for such a solution lies in the fact that the only existing treatment for celiac is for people to maintain a gluten-free diet. That might be doable at home, but dining out is impossible and even most well-managed patients still have flare-ups, he said.
It’s a surprising first bet for the collaboration with GSK, whose pipeline is heavy especially in cancer and respiratory disease. But the market does seem to be heating up in celiac, with AbbVie/Alvine, ImmusanT and Alba Therapeutics all in clinical trials.
Under the Avalon-GSK deal, Avalon will put forth $30 million to fund up to 10 drug discovery startups in San Diego over the next three years. GSK, which will provide up to $465 million, will have the first rights to buy each new company.
Lichter said the goal is to select opportunities that would add breadth to the pharma company’s pipeline of early discovery assets. “Most of these things fail, so you need to have a lot of good ideas,” he explained.
A Personalized Approach to Medication Nonadherence
At the Abarca Forward conference earlier this year, George Van Antwerp, managing director at Deloitte, discussed how social determinants of health and a personalized member experience can improve medication adherence and health outcomes.
To support Sitari and the other companies that come out of the deal, Avalon has also established an entity called COI Pharmaceuticals that will provide operational support, executive leadership and an R&D facility.
Lichter said he anticipates having four or five “really good ideas that we hope will turn into companies within the next few months.”
[Image credit: Avalon Ventures]
