Novo Moves Into Seattle: Part 2

Yesterday, I reported that the Seattle Post-Intelligencer reported that Danish insulin giant, Novo Nordisk A/S was setting up a research facility there aimed at developing autoimmunity drugs meant for type 1 diabetes. Today, the paper featured a follow-up blog posting and an interview with the guy who will be running the show at the newest addition to Novo's research facilities. I thought was worth sharing both of these, so here they are:

Blog Posting

In an interview Wednesday, Don Foster, who will head the Seattle site, said that Novo Nordisk decided to open the center here in part because other companies with operations here, including ZymoGenetics and Amgen (which makes the rheumatoid arthritis drug Enbrel), were already working in the field.

Among the indications Novo Nordisk hopes to target in Seattle are autoimmune and inflammatory diseases, including multiple sclerosis, rheumatoid arthritis, inflammatory bowel disease and systemic lupus erythmatosus.

"There is a pool of talent in Seattle and a track record of therapeutic discovery here," Foster said. "I think the idea is that Seattle has got some infrastructure. It is a nucleus for research in this area."

Novo Nordisk is best known for its diabetes drugs. But in the early part of this decade, the company said it would build a presence in oncology and inflammation.

In January, the company reworked that strategy, saying it would "increase and focus activities on inflammatory diseases." It said it would terminate its oncology program and use those resources to move ahead its inflammation programs.

Foster said the new Seattle operations – which will open in the next several months and are expected to employ 80 by 2010 – are part of that plan. Another Novo Nordisk group, based in Denmark, is also working in the area.

"The hope is that we build very dynamic research in this area by combining forces with both groups," he said. "Novo Nordisk is in this for the long run. A piece of what we will be doing in Seattle will be target-discovery programs. As much as possible we are going to try to tailor those and differentiate them from the kind of approaches (that other) people are doing."

He said that Novo Nordisk would not directly compete with other companies here.

"Some of the best track records for biologics are in autoimmune (disease). Drugs like Enbrel (have) had life changing effects, but in spite of that there are huge numbers of patients that have had unmet medical needs," he said. "I see tremendous opportunity for as many players as possible."

Foster started working for Novo Nordisk in July after spending 22 years at ZymoGenetics, where he most recently was a vice president of research, responsible in part for bringing projects forward in autoimmune disease and oncology.

He said that relationship would not be a conflict because he saw Novo Nordisk's Seattle site "heading into areas that are very non-overlapping."

In an interview Tuesday, ZymoGenetics CEO Bruce Carter hailed Novo Nordisk's entry into Seattle and said the two companies would simply be "chums."

Novo Nordisk has other ties to ZymoGenetics.

The company spun off ZymoGenetics eight years ago and still owns a 30 percent stake in it.

Also, among the programs impacted by Novo Nordisk's decision to exit oncology to focus on inflammatory disease was a partnership with ZymoGenetics to develop Interleukin 21, a cancer drug.

Novo Nordisk said it would outlicense its rights to Interleukin 21 to another company. So far, a new partner for ZymoGenetics has not been announced.



Newspaper story
Foster on Novo Nordisk's plans for Seattle
August 7, 2008

As I reported yesterday, Novo Nordisk, the Danish drug company, is setting up an autoimmune and inflammation research center in Seattle. By 2010, Novo Nordisk hopes to have 80 employees here. The site will be headed by Don Foster, previously a vice president of research at ZymoGenetics.

I interviewed Foster this afternoon. Below are some excerpts from the conversation.

On why Novo Nordisk decided to open its new research site here:

I think they chose Seattle because Seattle has a history of involvement in the discovery of therapeutics in (inflammation and autoimmune disease).

There is a pool of talent in Seattle and a track record of therapeutic discovery here.

I think the idea is that Seattle has got some infrastructure. It is a nucleus for research in this area.

On Novo Nordisk's current work in autoimmune and inflammatory disease:

Novo Nordisk is probably known most widely for diabetes drug development but ... they have a division called biopharmaceuticals that includes the development of drugs in several classes that go beyond diabetes ... (including) a growing commitment to autoimmune (disease) and inflammation that includes this Seattle program. There is an even larger group in Denmark (working in this area).

On the links between the groups in Seattle and Denmark:

Easiest way to describe this is a lot of what we will do in Seattle will be things that we initiate here. The hope is that we build a very dynamic research in this area by combining forces with both groups.

Novo Nordisk is in this for the long run. A piece of what we will be doing in Seattle will be target discovery programs. As much as possible we are going to try to tailor those and differentiate them from the kind of approaches (that other) people are doing.

On any overlap that will exist between his work at ZymoGenetics and now at Novo Nordisk:

I was in charge of groups that were responsible for discovery processes and bringing projects forward in autoimmune (disease) and oncology.

There are an amazing number of therapeutic discovery approaches that are open for exploration in this area and ZymoGenetics has a commitment to certain of those processes for therapeutic discovery and development, and yet there are many, many additional opportunities for more discovery processes and more therapeutic lead categories. I don't expect significant overlap in programs we undertake and anything going on at ZymoGenetics.

I have a legal obligation not to disclose anything going on at ZymoGenetics. But I don't really foresee any potential for that to be a problem because I see us heading into areas that are very non-overlapping.

Some of the best track records for biologics are in autoimmune (disease). Drugs like Enbrel (have) had life changing effects, but in spite of that there are huge numbers of patients that have had unmet medical needs. ... I see tremendous opportunity for as many players as possible.

I see very little potential for overlap for programs we are imagining with existing programs in the Seattle area and anywhere else, for that matter.

On where Novo Nordisk's Seattle site will be located:

We're just going through the site selection process. We're not really finished with that.

It's our preference to locate in downtown (or the) South Lake Union area. I can't rule anything out. We don't have any agreements.

On when the site will open:

I was hired July 1, and I expect and hope that we will have building space to begin putting people into place sometime in the next two months.

On employment:

I think it's a challenge to build something from 0 to 80 people. It's going to come in stages. I can't describe the timing of the phases. The end goal is to have something like 80 people in place by ... 2010.

I have been very pleased with the robust interest that is coming in response to the ads we've been posting.

And I just think people find it very appealing to have a company that has the resources and long-term horizon that Novo Nordisk brings -- the commitment to the disease area and the expertise in protein biologics and long-term track record and long-range vision instead of short-term. It's very appealing.

On Novo Nordisk's investment in the research site:

I don't think I can comment on the numbers. (It's) a very substantial financial commitment.

On the impact the site will have on Seattle's biotech community:

I think the overriding message from my point of view is this is a tremendous opportunity ... for Novo Nordisk. ... I also see it as a great opportunity for the Seattle biotech world to have a world class company with the resources of Novo Nordisk building a long-term focus to a disease area.