Rosetta

I missed the demise of Rosetta out here in Seattle. Merck bought this company back in 2001 for 630 million dollars. http://seattlepi.nwsource.com/business/22771_rosetta12.shtml

Things were going well in 20004. http://community.seattletimes.nwsource.com/archive/?date=20040325&slug=rosetta25

Then they discontinued the project last October. http://seattletimes.nwsource.com/html/businesstechnology/2008300061_rosetta23.html

It's a classic Cargo Cult scenario. We have a technology that will change the way drugs are discovered. Where are the drugs? Who is talking about why Rosetta failed to do what it promised? Only the Cargo Cult Scientist is wondering why computer programmers couldn't turn human speculations (medical research) into the fountain of youth. Too much BS was piled too high. So long Rosetta. I know you'll get an office or two in New Jersey but you won't produce any drugs. Silly.

2009 Predictions

There are not many companies left in Seattle. There are more than the CCS is aware of but many of the big players went down or were at least knocked down a peg last year. 2007 was already covered at the beginning of 2008. Dismal. But what about the upcoming year? I know that people will have a bias that the CCS is optimistic about the upcoming year of scientific discovery among the scientists of Biotech. But wait, I've got to admit that I can be a little negative from time to time. For example:

Gilead is expanding and hiring: http://blog.seattlepi.nwsource.com/thelifesciencesblog/archives/141124.asp

I predict they will grow in the most foolish ways imaginable. They have the brass from the ruins of Corus and they have no idea what they are doing. They do have a lot of money to spend however and they will do so for the sole purpose of creating a Cargo Cult Airport. It will be a nice facility with lots of promises presented on all of the lastest equipment available from Dell and software from Microsoft.

But I can also be positive. For example:

Amgen will rebound. http://seattlepi.nwsource.com/xconomy/392982_xconomy7075.html
It's an untestable osteoporesis drug. No harm means no foul. Lots of money will be handed over and the leadership will go back to spending the profits on their own Cargo Cult airports within the organization. Their RNAi projects will quietly start to fade and antibody work will be pumped up using new technologies bought from smaller companies.

I'm not an insider. I'll find out what is going on nonetheless. It makes life in the biz much more interesting.

How Can You Lose?

"Harry is an experienced portfolio manager who has a proven track record of success."

So says Adam Banker, a spokesman for Fidelity Investments. Harry Lange runs Fidelity Investments' Magellan Fund. The Magellan Fund has seen assets decline 83 percent since reaching a peak eight years ago. The 18.6 billion dollar fund declined 52 percent this year, trailing 99 percent of competing funds.

Somebody had to finish towards rock bottom. It makes you wonder what funds trailed the Magellan Fund. Did their managers also have a proven track record of success?

My interest in the financial worlds folly is directly tied to Cargo Cult philosophy. Clearly the world has seen behind the Wizard of Ozs' curtain. They didn't see failure coming anymore than they saw success in the past. These are the same people who invest in Biotech. Someone points out that RNAi is a hot investment because SIRNA sold for over a billion dollars. Fund managers get their clients checkbooks out and go looking for RNAi companies. Meanwhile it is no certainty that any of these people know what RNA is, let alone RNAi.

I'll end with a funny story about a biotech investor. This person was looking for investments in a hot biotech field he had just heard about. He called the investor relations department. A very nice lady who had just started in the department answered the phone. She had just been promoted up from her previous position as receptionist. Before that she spent 7 years as a secretary at the local high school. The investor spoke authoritatively to the nice lady. "Yes, can you tell me if you have any research taking place involving monoclonal antibiotics?"

Wallstreet Logic and Biotech

Why is it that Treasury Secretary Henry Paulson didn't originally ask for 1.5 billion dollars for his bailout plan? The original amount of 700 billion was a shock. The 800 billion seemed to be less appalling. Not only is it 100 billion dollars more, it comes right on the heals of the 700 billion. The most likely answer is that Paulson knew he needed a blank check but knew better than to ask for one. So he went about it this way. Creating an illusion of stability is the plan. Investors will buy into illusions.

This is clearly a Cargo Cult approach. We've noticed that during more prosperous times our bankers were flush with cash. Now they are all facing annihilation. If we slather them with cash then they will appear to be well again. But what about the fact that they ran out of that cash? Will they run out again?

Biotech financing works this way as well. We don't know how much we'll need. Give us millions and we'll get started. Give us more millions and we'll keep up the good work. And just keep on giving until we succeed. But we rarely succeed. Now we are watching our government give billions to individuals who also have a promise.

Another issue is whether or not the meltdown is really bad for us. Gas is now 1.85 per gallon. Real estate is dropping which is bad for the profits I would have needed to make a downpayment on the next place. But I now get to select from a whole new set of properties for my next place. I'll have less to put down but I won't need as much. It appears that our economy is merely correcting for a decade or more of inflation.

If 100 people live on an island with only enough food to comfortably feed 100 people then you have to figure out how to ration the daily intake. If you do it wrong then some will have too much and some will have too little. It takes a special kind of person to admit that they are getting more than their share. They must also decide who gets their extra food. What is needed is a governing body on this island that knows how to ration. Some will gather the food, some will prepare the food and some will search for new sources. All will need food. The important thing for the governing body is to not make any one group of the team so important that another is eliminated.

The main point today is that money fuels wallstreet and it fuels biotech. It's great when you have it but humiliating when it's gone. So somewhere along the way to failure we have to take a look at how effectively were using our limited resource, money. Once again... Dr. Richard Feynman:

"So we really ought to look into theories that don't work, and science that isn't science."

And I might add, look into it sooner than later.

DOH!!!

http://health.msn.com/health-topics/colon-cancer/articlepage.aspx?cp-documentid=100220689

Chaulk up another swing-and-a-miss for medical science.

Back to RNAi

We recently put the flame of Nastech out. Tight junction technology didn't work!!! Nastech lit the side of our runway for many years. Then one day it ended. The name was changed, the CEO was replaced and the stock became a steal at 15 cents a share. The name of the company was changed to MDRNA, as in RNAi. The new CEO was in fact the old CEO of SIRNA, as in siRNA. The latest addition to the MDRNA staff is the old CSO of SIRNA. SIRNA was sold for 1.1 billion dollars to Merck. Can lightening strike twice?

The first question is, what has Merck done with their aquisition of SIRNA? Any regrets? 1.1 billion is a lot of money. One might hope to make that kind of money from an approved product. Merck did not buy an approved product. The second question is, what does MDRNAs new brain trust plan to do with the 12 million bucks left behind by Nastech? The SIRNA patents are in the hands of Merck leaving only the brain power behind SIRNA and the power of RNAi.

The brains behind this new flame along our runway have a major obstacle. Can they stay in business long enough to get a drug approved? The villagers must be very enthusiastic, but will they hand over their money? If not this latest RNAi project will not get off the ground. If they get funds they will be free to conduct the science. We are watching.

A Villager Speaks Up

One of the most outspoken villager, who looks up daily to spot the cargo planes, has detected a way to spot a false profit: http://www.thestreet.com/story/10443120/1/dont-get-burned-by-the-next-cell-genesys.html?puc=googlefi&cm_ven=GOOGLEFI&cm_cat=FREE&cm_ite=NA

Mr Feuerstein makes a living telling the other villagers, who look to the sky, what it is they should expect to see any day now. But he speaks from the investment perspective. The science is something he peppers into his columns. He doesn't know. It would be interesting to see an accounting of his ability to predict good from bad investments. Are his predictions best measured by his understanding of the science? Would a random stock pick make more or less?

Keep looking up Mr. Feuerstein.

Once again, Feynman; "So they've arranged to imitate things like runways, to put fires along the sides of the runways, to make awooden hut for a man to sit in, with two wooden pieces on his headlike headphones and bars of bamboo sticking out like antennas--he's the controller--and they wait for the airplanes to land."

I will promote Feuerstain to control tower supervisor.

A Cancer in the Health Care System

What if there were doctors for the health care industry. A company like Pfizer goes to the doctors office compaining of a weakness in sales and a bleak outlook for the future of their research efforts. The doctor says, "take off your marketing department please."

Pfizer: Things like this keep happening to us:

http://ap.google.com/article/ALeqM5g--AosBLRVpNsiYYtzTePEXOUzoQD93S9NGG0

Doctor: Hmm. I see you have an honesty problem.

http://www.nytimes.com/2008/10/08/health/research/08drug.html

Pfizer: Well, we have to make money.


We continue to be shocked at the lack of outrage against these common practices. Which executives made the decisions that led to the conclusions in the second article? What about repeating such dishonesty over and over and occasionally getting caught? The industry has a disease. It is incapable of being honest when negative data presents itself. What is the cure?

Cargo Cult Scientist Gets Snubbed

The Nobel Prize committee for medicine has failed to honor Dr. Robert Gallo for his contributions to the HIV/AIDS hypothesis. While it's true that he appropriated the HIV virus from Luc Montagnier, he did convince the masses that this was the cause of HIV. A true Cargo Cult Scientist does not succeed by solving tough questions. He succeeds by convincing people that he knows how to make the airplanes come from the sky. The better the Cargo Cult Scientist the longer he can keep the masses looking up and waiting. The message from Stockholm today seems to say that it was not Dr. Gallo who started us all looking up.

Now would be a good time for the national media to explain why Dr. Gallo was snubbed. He was snubbed because he is a dishonest person. Many people know this yet he continues to work in science. Dr. Prusiner, the 1997 winner of the prize put it this way: http://aidscience.org/science/298(5599)1726b.html.

There are many prizes for the many promises.

Have a Plan

Lately I've been thinking about the way in which ideas become accepted. The Cargo Cult natives saw the cargo emerging from the big metal birds and a desired outcome was born. Now all they needed was a plan. They watched the Allied forces carefully and began piecing together their plan. The desired outcome however was the most important piece of the plan. The ideas of how to acheive the outcome took a back seat while the leaders dreamed of the cargo.

We recently experienced the Republican and Democratic national conventions. The mission was to convince the majority of America that one party will provide a better future than the other. The melt down of wall street however is an excellent example of our political and corporate leaders ability to predict and shape the future. Our government is going to put up 700 billion dollars (this week!) to "fix" the problem.

But what about 2 weeks ago? Was anyone preparing for the bailout? What was being done 2 months ago? When did this government bailout start to take shape? We now have our desired outcome. We want the economy to be strong. That is our cargo. What is our plan? Bail out the banks so they can go back to making loans.

How did the ideas that went into the bail out plan gain acceptance?

The 700 billion dollar bailout does not guarentee success. It is a plan however. For the politicians, a plan is all that is needed. Even if the plans spells the end to the great American era. It doesn't occur to the Cargo Cults that there plan is not working. Simply carrying out any plan gives off the impression that work is being done.

Only a proper scientific method will bring about a proper change. Compare the actual outcome to the desired outcome. The ideas that were accepted may have lead you astray.

The Psychology of RNAi

This summers reading brought me in contact with a most beautiful book on the subject of randomness. The book is called "The Black Swan". In it you will find heretical discussions such as, "Academic success is partly (but significantly) a lottery. It's easy to test the effect of reputation. One way would be to find papers that were written by famous scientists, had their authors identities changed by mistake and got rejected. You could verify how many of these rejections were subsequently overturned after the true identities of the authors were established."

The painful truth about science is that it is run on the most non-scientific means of judging a persons work. Reputations rule. Good solid science will do you no good if you cannot convince the powers that be that they have missed something. This is not an easy task due to the arrogance of power. If you dare challenge someone like a David Baltimore or Craig Mello you had better have a powerful group of cohorts willing to back you in your battle.

The CCS knows this and is under no delusions that he is actually battling the powers that be. This is rather an exercise in psychology. What does any person have to do to affectively be heard? Write a blog? Ha! Have a great idea? Ha again. Great ideas can have just as hard of a time being sold as bad ones. In fact, the scientific merits of an idea is not as important as its presentation. Who is presenting the idea. Are they confident? Is the idea presented in peer reviewed journals, scientific meetings or books? Does the idea fly in the face of current thinking?

Billions of dollars have been spent and many more are on their way out the door for RNAi to be used as a drug. Beyond that, RNAi has been the bane of many a research associate whose job it is to use RNAi to knock out genes. It's like using a feather to hammer nails. But no one is going to listen to a guy who wears a white lab coat daily. No one is going to publish a paper stating that RNAi has yet again failed to produce knockout data. The idea that it doesn't work is no longer being accepted. Like gene therapy however, it will cease to impress and thus be put on the back burner. One day the real story behind what happened in the early studies of RNAi will be known. Until then we must accept that we are in the middle of a common situation in the history of human reasoning. We are convinced that we know the truth. We no longer require evidence to the contrary. Yet the planes are not landing.

http://www-tech.mit.edu/V125/N50/50van_parijs.html

This is an old story. This marks a new chapter in the CCS. We will now make it our mission to explain why this (RNAi) happened and how it will end. We have learned much from gene therapy and the demise of hundreds of biotech companies. Tens of billions of dollars are gone but there is something to be learned.

Just for fun, we start with a Harvard PhD who is fired from MIT after a rather successful beginning to his career. As you read about this story please think about the environment that make it possible. Harvard? MIT!!! But... but... PhDs? 461 citations. But there was a Nobel prize awarded for the RNAi story. Why would anyone in such a world have to cheat?

One Flame Out, One Flame Close Behind

http://seattlepi.nwsource.com/business/366495_nastech11.html
http://blog.seattlepi.nwsource.com/thelifesciencesblog/archives/141684.asp

Nastech is no more. Therapeutics will be done soon as well. Notice the name change at Nastech however. Cell Therapeutics may do the same thing. There is much to learn from companies like these who promise the cures. They take until they can no longer get away with it. Then they change their names and go back for more.

Sirna Sold For 1.1 Billion!!!

As I mentioned in the last post, a company called PhaseRx boasted that they are an RNAi company. What's the big deal about that you ask? SIRNA SOLD FOR 1.1 BILLION DOLLARS! So let's give PhaseRx some money!

Do you think that is a silly thing to say? How can a bunch of grown men with PHDs and MDs get together and hoodwink investors so easily? Does PhaseRx not have to present the scientific merits of their RNAi company?

In more recent news, the notorious Dr. Quay of Nastech Pharmaceuticals discussed the ruins of his biotech company today. In an attempt to ease the suffering of his investors he spoke glowingly about his spin-off 'MDRNA' a new RNAi company. There wasn't much information about the last five years of RNAi research under the old banner of Nastech. But he did mention this interesting fact:

SIRNA SOLD FOR 1.1 BILLION DOLLARS!

Who will be the first to go? MDRNA or PhaseRx? Will Merck keep spending money on SIRNA projects? The CCS will be on the lookout. Our eyes cast to the skies, we look for the kind of cargo that only billions of dollars can summon.

Would You Work for This Company???

Seattle Biotech has a new management team that has been sued by their investors. http://seattletimes.nwsource.com/html/businesstechnology/2004127544_cellcyte16.html

Okay, so that is old news. We also have a new fire to light our runway. And they specialize in RNAi!!! They have the old Nastech CSO who was "resigned" recently after years of not making RNAi work there.
http://seattletimes.nwsource.com/html/businesstechnology/2004247523_biovc28.html

Welcome to the airport.

What's in the News

'In the South Seas there is a cargo cult of people. During the war they saw airplanes with lots of good materials, and they want the same thing to happen now. So they've arranged to make things like runways, to put fires along the sides of the runways..."


We here at the CCS look at each biotech hub as a cargo cult airport. Seatte, the bay area, San Diego, Boston, North Carolina are all airports. The fires along the runways are small biotech companies.

The seattle cargo cults had a bad week.

Cell Therapeutics throws a 30K$ party after laying off 31 employees to save money.
http://seattlepi.nwsource.com/business/351048_cti13.html?source=rss
Amgen lays off 130 employees... up from the 50 they anticipated. They found more useless people than they originally thought they had hired?
http://seattlepi.nwsource.com/business/351138_amgen14.html
Dendreon can't get a break!
http://seattlepi.nwsource.com/business/351210_dendreon14.html
Nastech is one step closer to the end.
http://seattlepi.nwsource.com/business/350985_nastech13.html
Zymogenetics has layoffs after finally getting a drug approved.
http://seattlepi.nwsource.com/business/351223_zymogenetics14.html
CellCyte is a ridiculous company!!!
http://seattlepi.nwsource.com/business/351230_cellcyte15.html
The CellCyte CEO did lied?
http://www.sequence-inc.com/fraudfiles/2008/01/13/usana-executives-arent-the-only-ones-lying-about-their-credentials/

Sheesh!!!

A Burning Flame Going Dim

We think of biotech companies as bright burning flames that illuminate the runway of our Cargo Cult airport. We think of technologies such as RNAi as the fuel for the flames. Today we are concerned about our Nastech flame.

On January 16, 2008, Novo Nordisk A/S ("Novo") advised Nastech Pharmaceutical Company Inc. that Novo intends to cease development under the feasibility study agreement that the parties entered into in March 2006.

Jan 22 (Reuters) - Nastech Pharmaceutical Company Inc (NSTK.O: Quote, Profile, Research) said it may periodically sell up to $50 million in debt securities, common and preferred stock, warrants and units.

The company said it intends to use the proceeds in part to fund its clinical research and development programs.

Is the end coming soon? How will it end? Will they rebound??? We are watching.

A New Set of Questions for Scientists

Merck and Schering Plough make a drug called Vytorin which combines Zocor, a cholesterol lowering statin, with Zetia, a drug that limits cholesterol's absorption into the body. The ran a trial that was hoped to show that this drug was more effective than Zocor alone in slowing the growth of arterial plaque, which can lead to heart attacks. It wasn't. Vytorin users did see a larger drop ini cholesterol than Zocor users. The decline however didn't result in a improved arterial health. http://www.revolutionhealth.com/news/?id=hd-611715&s_kwcid=vytorin934891494

Shocking news to the scientists and doctors working for the drug companies. They just had no clue this would happen.

Folkmans Delivery Problems

Dr. Judah Folkman was a rising star with several publications and patents on anti-angiogenisis factors. The problem was that no one was able to reproduce his results. From his book "Dr. Folkmans War":

Soon after he began shipping endostatin to researchers around the country, Folkman heard that the drug had become inactive by the time it got to some of the laboratories... The recipients reported that the drugs were having little or no effect on cancer-bearing animals. Folkman was alarmed, needless to say. Any such report carries with it the suggestion that somehow the original research was wrong, or worse, that the results had been embellished.

Folkman and his colleagues soon noticed that the problem seemed to be only with batches that were shipped to distant places. The endostatin being tested in local labs was fine. So the problem, in all likelihood, was in the shipping.Like many drugs or biomedical compounds, the endostatin was being frozen in small plastic vials, packed in dry ice, and was sent out via Fed Ex. Folkman began doing experiments to figure out what might be going wrong. First, they found that the problem was not caused by freezing. When they froze a vial of endostatin, then thawed it, the drug worked normally. So how could transportation hurt it? Hoping to find clues they packed a sample in dry ice, stowed it in the trunk of a car, and drove around Boston with it. Sure enough, when they brought it back into the lab and thawed it, the endostatin didn't work. But why?"

The answer they later came up with was that the dry ice that the drug was packed in bathed the solution in carbon dioxide that had seeped through the vials. The result was the lowering of the pH that inactivated the drug. The solution to the problem was to put the drug into glass vials for shipping. The results of this experiment were not covered in the book.

Judah Folkman Is Dead

No sacred cows here. Dr. Juday Folkman died of a heart attack this past week at the airport in Denver. He had a great career in medicine. He was an MD surgeon who had a second career as a PI in a laboratory that explored the involvement of blood vessel in tumor growth.

The CCS does respect Dr. Folkman for offering up a new idea to the establishment and proving that tumors need blood. But then all cells need blood for oxygen and to carry away their waste. This should have been less heresy than it was. The real issue we have with Dr. Folkman however is his role in bringing corporate america into academia.

Dr. Folkman had spent a long time looking for a tumor angiogenesis factor that he decided had to be secreted by the tumor. What he needed was money to grow up large amounts of tumor cells to increase the odds of finding the factor. Monsanto was eager to give him what he wanted. The grant he was given and the terms of the deal swung the academic doors wide open for the corporate world. Their money could now buy access to the usefulness of our university system.

What they wanted of course were patents. They wanted to lay claim to the good work being done, not in their laboratories, but in the superior labs of university scientists. In my next post I will recount a humorous ending to one of Dr. Folkmans corporate sponsored R&D projects. For now I will end with the moral of this story:

The introduction of corporate minds and money into the world of science has been a disaster. In many ways, it began with Dr. Folkmans desire to become a scientist.

Is It Dishonest?

Nastech Pharmaceutical Company Inc. (Nasdaq: NSTK) announced today that the U.S. Patent and Trademark Office (USPTO) has issued a Notice of Allowance for U.S. patent application No. 10/976,942, entitled "Phage Displayed Trp Cage Ligands." The patent application has claims that relate to a novel, high-throughput method for identifying peptides which can bind to specific cell types.

"A major obstacle in the development of safe and effective medicines today is the inability to target the therapeutic directly to the cells of interest," stated Steven C. Quay, M.D., Ph.D., Chairman and CEO of Nastech. "The technology of this allowed patent provides Nastech with a process for rapidly identifying peptides that target specific cells. These targeting peptides can then be combined with therapeutics to enhance overall delivery and overcome this key challenge in drug development."

Why then did Nastech sack the Phage Display group in 2006. The Cargo Cult Scientist knew members of this team and the reason they were given was contrary to the above quote from the CEO. It just wasn't working. The question then is simple. Is this dishonest?

In Cargo Cult terms, yes this is dishonest. They stood at the airport and employed their technology. They looked to the sky and no planes came. They sent the staff home. A couple of years later they still talk about the technology. Their government has given them a nod of approval but no planes have come.

FDA Science

Does Dendreons cancer drug Provenge really work? After hundreds of millions of dollars spent on research and careful analysis from the MDs and PhDs of the medical science community, it's now up to the United States Congress to analyze the analyzers.

"two members of the FDA's advisory committee who opposed the drug's approval -- Howard Scher of the Memorial Sloan-Kettering Cancer Center and Maha Hussain of the University of Michigan -- had conflicts of interest.
"There is reason to believe that serious ethics rules were violated by two FDA advisory panel members in their decision, and that these violations played a role in the subsequent FDA decision to not approve Provenge at this time," said the letter, signed by Reps. Mike Michaud, D-Maine; Dan Burton, R-Ind.; and Tim Ryan, D-Ohio.
The congressmen said Scher was a lead investigator for a competing cancer drug..."

http://seattlepi.nwsource.com/business/343479_dendreon14.html

CTI Kicks Off a New Cargo Cult Season

Viewpoint #1

SEATTLE, Nov 21, 2007 /PRNewswire-FirstCall via COMTEX/ -- Systems Medicine, LLC (SM), a wholly-owned subsidiary of Cell Therapeutics, Inc. (CTI) , announced that cumulative preliminary results of a phase I trial combining cisplatin with brostallicin in patients with solid tumors that had relapsed or were resistant to front-line treatment were presented at the Highlights in Oncology meeting in Naples, Italy, on Tuesday, November 20, 2007. Cristina Geroni, Ph.D. of Nerviano Medical Sciences (NMS), which developed brostallicin, summarized the basis for the phase I trial design. The trial is based on data demonstrating tumors with high levels of GSH/GST, common in platinum-resistant disease, are more susceptible to the killing effects of brostallicin. High levels of GSH and GST are associated with resistance to most standard chemotherapy drugs
"Our phase I and II experience with brostallicin in over 160 patients demonstrates encouraging anti-tumor activity in a variety of solid tumors, with more than 50% of the patients experiencing at least disease stabilization," said Steven Weitman, M.D., of Systems Medicine.
The preliminary results from the first 21 patients treated in the phase I combination trial with cisplatin showed similar results, with 14 of the patients experiencing stable disease and half (50%) of those 14 patients having durable stable disease for more than six cycles of therapy. Toxicities were mainly hematological and were manageable and reversible in this heavily pretreated patient population

Viewpoint #2

Cell Therapeutics stock falls on treatment study results

Seattle's Cell Therapeutics Inc. reported the results of an early-stage study of a cancer treatment, which combines two drugs, brostallicin and cisplatin, Wednesday. Of the 21 patients with tumors treated in the study, 14 did not show any changes -- positive or negative -- in the progression of their cancer. Cell Therapeutics said side effects were manageable and the company expected to advance its studies. The company's stock fell about 17 cents, or about 6 percent, to close at $2.38 on the Nasdaq stock market.

I believe it was John Allen Paulos who pointed out the medical science can be easily corrupted by psuedoscience. Sick people can either get better, stay the same or get worse. The first 2 situations can be attributed to your drug. Once you apply statistics you have protected yourself with "science". Two thirds of the patients in the Cell Therapeutics study stayed the same. They did not get better. Is this positive news?

More on CTI

http://seattletimes.nwsource.com/html/businesstechnology/2003670653_cell18.html

The Year Gone By

I'll let the Seattle Times lay it all out for you. They are so much nicer than me.

http://archives.seattletimes.nwsource.com/cgi-bin/texis.cgi/web/vortex/display?slug=biotech12&date=20071112&query=biotech

I've been silent for so long waiting for one big write-up and here the Seattle Times has done it for me. But I will make a few comments regarding the future of Seattle Biotech. The Accelerator companies will soon be facing tougher customers now that they have obtained multi-million dollar payoffs. Of course their investors assume they are just taking off. Cargo Culters know that the main goal is to get paid. The secondary goal is to get out before the S hits the fan. 2008 will be a critical time for VLST and Spaltudaq. Homestead may have already disappeared without any official notice. No thoughts on the others.

So I raise a glass and toast the Cargo Cult Airport otherwise known as Seattle Biotechnology. Many a flight was cancelled or delayed this year. But we'll keep looking up. The Cargo Cult Scientist is always on the lookout.

Video - CNBC.com

Video - CNBC.com

Nastech

RNAi has finally been mentioned in a Nastech press release. They are spinning of the RNAi research into a subsidiary company called MDRNA. And the stock went up on this news!

While Nastech themselves had 5 years to create an RNAi drug, they are now claiming that the new company, MDRNA, will be seeking funding in the near future. Nastech screwed up the rest of their company so badly that they must now cut out RNAi research in order to survive. In the process they intend to send out their business people to ask for more money.

We here at the CCS would like to meet the people who intend to invest in MDRNA. We got a nice bridge we'd like to sell them.

Philosophy

Oh what a tangled web we weave...

Annonymous qoute from an annomymous boss at my annonymouse biotech job.

"We can't use that control because it might not work out how we want it to. If it casts a shadow over our drug candidate we're screwed."

Ah the joy of science.

And now for a countdown of some of the consequences for leaving out proper controls.

Point Therapeutics (POTP) Cuts 76% of Work Force. Recent interim clinical results led the Company's Independent Monitoring Committee to recommend stopping the Company's two Phase 3 talabostat studies as a potential treatment for patients in advanced non-small cell lung cancer, and the talabostat clinical development program was subsequently put on clinical hold by the FDA.

ImClone Systems Incorporated (IMCL) Says Erbitux Fails in Lung Cancer Trial More...
Endo Pharmaceuticals (ENDP) Says Patch Fails 2 Late-Stage Trials; Shares Fall More...
Antisoma PLC (ASM.L) and Novartis Corporation (NVS) Drug Fails in Ovarian Cancer More...
Amgen (AMGN) (Jobs) and Daiichi Sankyo, Inc. Reach Deal on Bone Antibody More...

I threw in the Amgen story because I used to work with RANK ligand and one of the lead scientists at Amgen on the RANK ligand project. Amgen sent this scientist packing back in 2001. They didn't believe in the drug. This would never stop them from making a deal however. Good people.

Controls in the early stages of research would only put us out of work faster. Sorry cancer patients but we're going to keep trying to make these old drugs work. We don't have the time nor money to find new ones. Keep your fingers crossed. We do the same things when working without proper controls.

Cargo Cult Promotions

I mentioned the unusual deal between Zymogenetics and Bayer.

ZymoGenetics Establishes Global Collaboration With Bayer HealthCare for Development and Commercialization of Recombinant Human Thrombin6/19/2007
ZymoGenetics to receive up to $198 million plus royalties, including up to $70 million in 2007
Bayer HealthCare acquires product rights in all markets outside the U.S..

Not a very good deal considering Zymogenetics reported net losses of 130 million in 2006, 78 million in 2005 and 88 million in 2004. I mentioned a possible Cargo Cult connection of creating the illusion of a company on the move. The executives thus position themselves for rewards.

SEATTLE, July 2 /PRNewswire-FirstCall/ -- ZymoGenetics, Inc. today announced that Douglas E. Williams, Ph.D. has been named President of the company. Bruce L.A. Carter, Ph.D. will continue as ZymoGenetics' Chief Executive Officer and Chairman of the Board. James A. Johnson has been promoted to Executive Vice President and will remain Chief Financial Officer and Treasurer. Darren R. Hamby has been promoted to Senior Vice President, Human Resources. All three promotions were made effective July 1, 2007.

Promoted into jobs that didn't exist yesterday? Pay increases? When will Zymogenetics turn a profit? Now that senior management is now more... um... successful, perhaps the company will follow in their footsteps.

Back

I took some time off after starting my latest job in the biotech industry. A lot has gone on. Dendreon received a favorable evaluation from an advisory panel evaluating their Provenge drug. The stock from 7 bucks a share to over 20. Then the FDA asked decided more trials were in order sending the stock back down to 7 bucks again. Later a grass roots effort was put in motion where investors and prostate cancer advocacy groups started lobbying to get the FDA to change their minds. Hmm. Cramer (Mad Money) has stopped touting Nastech now that the stock has been sinking slowly but surely for the past month. Luckily Cramer picks stocks left and right and never has to discuss the ones that tank. He reminds the one of John Edwards amazing ability to speak with dead people. I'm seeing a hot company. Nazzzzzz... a nasal spray company... anyone??? Zymogenetics signed a deal with Bayer to market their Thrombin drug which will be competing with the already approved Thrombin drug from King Pharmaceutical. The deal was amazingly underwhelming financially leading one to wonder if the executive staff has a clause in their contracts to bring a drug to market or else. In general, nothing scientifically interesting has happened, just the same old tricks.

The real excitement for the Cargo Cult Scientist is to be around industry insiders who have their own stories to tell. Forging data, hoodwinking investors, and all of the usual subjects are alive and well. In the future I will try to get a few good stories. We have the GE Healthcare sales staff who point out the lack of activity coming from Amgen. We have the ex-Icos employees struggling to find new work. We have the re-structuring of R&D at a couple companies. We have plenty to work out.

Cinders

In honor of Mr. Cinders:

"My relationship with cats has saved me from a deadly, pervasive ignorance." -William S. Burroughs

"Do you have a cat? Or cats? They sleep baby. They can sleep 20 hours a day and they look beautiful. They know there's nothing to get excited about. The next meal. And a little something to kill now and then. When I'm being torn by forces, I just look at one or more of my cats. There are 9 of them. I just look at one of them sleeping or half-sleeping and I relax." -Charles Bukowski 4/16/92 12:39 a.m.

Couldn't find a good quote but Jack loved his cats!

Cinders came to me on a rainy day in fall. He was hiding from the cruel world on the cold pavement underneath my truck. When I stepped out to go to work he came up to me. He seemed to be asking for help. I sat down and let him warm up on my lap. When I got up the next day he was there again. He eventually came into the house through the dog door. He had a good end to his life. We did not force him to live and die slowly like we do with humans. I said good-bye and went home without him. This was very hard but it reminded me to take more time with the people (and animals) that I love. Life is not about quantity it is about quality. Cinders added a certain quality to this life.

As Tough Times Loom...

SAN DIEGO--(BUSINESS WIRE)--Ligand Pharmaceuticals Incorporated (NASDAQ:LGND - News) announced today that it is restructuring its business, pursuant to its new business model, by reducing its workforce by about 267 positions or approximately 76 percent.

LONDON, Feb 1 (Reuters) - AstraZeneca Plc (AZN.L: Quote, Profile , Research) plans to cut some 3,000 jobs, or 4.6 percent of its global workforce, to ensure future profit growth as generic competition bites and some key drugs start to mature, the company said on Thursday.

ZURICH, Feb 5 (Reuters) - Swiss drug maker Roche (ROG.VX: Quote, Profile , Research) plans to restructure its research and development activities around therapeutic areas to speed up decisions and increase efficiency.

A hard rain is falling. The scientists that are chucked out of the universities are not getting the job done. They are failing time and time again. They are using their scientific credentials to become businessmen. They are leaving the hardest part up to underlings.

A new paradigm must take shape. Scientists must return to the laboratory. They must figure out how to run clinical trials. The age of scientists as businessmen must end. Science is the way. The old way has brought about a hard rain, as Bob Dylan would say. A weeding out process must take place. Those who survive must emerge as scientists.

If Only There Was A Way...

LONDON, Jan 29 (Reuters) - GlaxoSmithKline Plc (GSK.L: Quote, Profile , Research) was accused on Monday of distorting clinical trial results of its antidepressant Seroxat, or Paxil, and covering up a link with suicide in teenagers.

http://www.ahrp.org/cms/content/view/444/29/

A classic study in career survival in the wild kingdom of a global corporation.

E. Howard Hunt,

MIAMI -- E. Howard Hunt, who helped organize the Watergate break-in, leading to the greatest scandal in American political history and the downfall of Richard Nixon's presidency, has died. He was 88.

Hunt eventually spent 33 months in prison on a conspiracy charge, and said he was bitter that he was sent to jail while Nixon was allowed to resign.

Scooter Libby is still alive, awaiting his punishment for carefully following the orders of Karl Rove and Dick Cheney and leaking certain information to the press. Rove and Cheney hatched the idea of outing Valerie Plame as a punishment for her husband Joe Wilson. Wilson, you will recall, had the audacity to release information from his fact finding mission to Nigeria to determine if they sold yellowcake to Saddam Hussein.

It's about dishonesty. Supressing information can be as bad as lying. It all began with supressing Joe Wilsons information. He (Wilson) wrote an article that was published in the New York Times thus working against the white house efforts to start a war. They (the white house) made the decision to release information that we (the American people) need to supress, the identity of our CIA agents. Plame and Wilson and the press wanted to know who released this information to the public. Then Libby and Rove and Cheney and all the rest of them began lying.

It is indeed a tangled web. The lesson for the science minded person is that honesty is not just about fact and fiction. It's about selecting data that fits your bias. You may begin by ingoring a piece of data that doesn't fit your hypothesis. Next you may get more agressive and try to discredit people who disagree with you. If that fails you will end up lying. A true scientist must work very hard from the beginning to stay off of this path. At all points you must keep your eyes open to make sure you haven't strayed onto it. Otherwise you are no better than a politician.

RIP Howard Hunt. Libby will carry the torch of dirty rotten scoundrels like yourself who lie and cheat to protect our highest ranking politicians. Let's hope Scooter gets at least 33 months for his part in starting the Iraq war. At least you, Howard, didn't do as much harm as Scooter.

Dead Investors Walking

The CEO of Cell Therapeutics had a stipulation written into his contract stating that he had to put a drug onto the market prior to 2000 or he would not receive a huge bonus for his services. Just prior to that date Dr. Bianco bought Trisenox, which was destined to be approved but not destined to earn much money. It satisfied Dr. Biancos contract but did not earn the foolish investors of CTI any money.

Now CTI, a desperate company, is vying for DOR BioPharma, Inc.

Under the proposed terms, Cell Therapeutics would issue the Company's shareholders 29,000,000 shares of Cell Therapeutics' common stock, representing 19.9% of Cell Therapeutics' outstanding shares of common stock. Warrant and option holders would receive shares of Cell Therapeutics' common stock in an amount determined using the Black Scholes pricing model. Cell Therapeutics has reserved the right to offer cash as consideration for the warrants instead of Cell Therapeutics' common stock. In addition, Cell Therapeutics is also offering the potential for an additional $15 million payment (in stock or cash at the Company's option) upon receipt of the approval of the U.S. Food & Drug Administration of the Company's new drug application for orBec®. The proposal from Cell Therapeutics is subject to, among other things, the completion of satisfactory due diligence regarding clinical, regulatory, manufacturing and proprietary positioning for orBec®.

What is Dr. Bianco up to now? DOR is trading for less than a dollar a share. They are currently at 40 cents a share, down 27% on the news of being taken over by the esteemed Dr. Bianco. They could make a movie out of CTI. As boring as science is, you could create the greatest film noir out of the life lead by Dr. Bianco. Just don't try to create a profitable investment from this person.

Pfizer Falls

Pfizer came up with a new plan. Take ten percent of the work force and get rid of them. Ten thousand human beings working on the Cargo Cult Airport known as Pfizer are going to be set free.

Pfizer, the world’s largest pharmaceutical company, said it would cut manufacturing sites in Brooklyn and in Omaha and would seek to sell a third site in Germany. It would close three research sites in Michigan and said it hopes to close one in Japan and another France.

Pharmaceutical industry analysts have generally been welcoming cutbacks by Pfizer but have said that while cost-cutting is beneficial, the company needs to resume growth by bringing new products to market. Still, Pfizer’s shares were trading down about 1 percent this afternoon.

Pfizer has been suffering from the loss of patent protection on key drugs like the antidepressant Zoloft and the antibiotic Zithromax. Sales of both drugs plummeted more than 70 percent in the fourth quarter of 2006, the company reported today.

At the same time its laboratories have had difficulty coming up with new hits. The company suffered a huge blow in December when safety concerns prompted it to halt development of torcetrapib, a cardiovascular drug that it considered the most promising experimental drug in its pipeline.

The number one drug company in the world today, with billions and billions of dollars cannot come up with new useful drugs. With all of the advances in biological science over the past few decades you would think it would be easier.

The truth about drug science is that scientists all work in cubicles, attend meetings and write reports. They do not go into the lab. After obtaining their PhDs they go out and do what they do best; they talk. They are trained to write grant proposals. They are trained to defend popular notions that they most likely did not think of themselves. They learn to take a certain tone of voice that makes people think they know what they're talking about.

The Cargo Cult Scientist spent a year interpreting DNA data to PhD scientists in the drug industry. These "experts" were too old to have learned molecular biology software. If, for example, they wanted to know if there was a mutation in a clone they had to ask me. The only way they could know the truth was if I told them. And then they had to trust me. Others, less important, could easily bring up the files in Vector NTI software and compare for themselves. They would be able to come up with the mutation if there was one. It's easy if you take the time to learn new things.

Senior scientists have put themselves in positions where they do not need white lab coats. This disconnect between how data is obtained and how it is talked about has created a lull in the productivity of new drugs. Arrogance is a factor. There is also a culture of accepting failure as the norm. So ten thousand people are losing their jobs at Pfizer. This is perhaps a good thing for the industry. Some of us need to find more productive careers. If that means putting on a Home Depot apron and helping people with home impovement projects, then so be it. Society needs helpers more than they do useless scientists desperately clinging on to their jobs. The receptionists, lawyers, accountants and all of the other "carpet walkers" did their jobs. The scientists did not. They failed and Pfizer has fallen.

Ironically, it will be scientists who help Pfizer get back on its feet. Can Jeff Kindler find the right people? Getting rid of the wrong people is a good start.

Give Til It Hurts

BOTHELL, Wash., Jan. 18 /PRNewswire-FirstCall/ -- Nastech Pharmaceutical Company Inc. (Nasdaq: NSTK) today announced the pricing of an underwritten public offering of 3.25 million shares of its common stock at an estimated total public offering price of up to approximately $42.9 million.

On this news Nastechs stock plunged 94 cents (down 6.69%) to finish the day at 13.12. I'm no stock market genius but offering a stock currently valued at 13.12 for 13.20 might be a hard sell. Time to learn about the old stock market and how it works. Lets keep an eye on this deal.

Think of Nastech as a Cargo Cult airline that carries piles of cash for the investors who are waiting in the Cargo Cult airport lobby. Each of their flights, PYY, PTH, calcitonin, have been delayed. The siRNA airplane is still waiting for take off at an undisclosed location (does this plane really exist?). The investors see someone making their way to the information booth. What could it be? Positive clinical trial results? A new break through in siRNA research? Ewww the anticipation!!!

They want more money? Son of a...

The 6 months stock chart tells the story of investor patience.

P.S. Nastech seems to be good at raising the stock price when it's desparately needed. Day traders should take a risk and buy in the morning and sell by the end of the day.

Baby Chair Research Mistake

Consumer Reports withdraws its recent claim that most infant car seats failed the magazine's front- and side-crash tests.

“Our (the National Highway Traffic Safety Administration) initial review of the Consumer Reports testing procedures showed a significant error in the manner in which it conducted and reported on its side-impact tests. The organization’s data show its side-impact tests were actually conducted under conditions that would represent being struck in excess of 70 mph, twice as fast as the group claimed. When NHTSA tested the same child seats in conditions representing the 38.5 mph conditions claimed by Consumer Reports, the seats stayed in their bases as they should, instead of failing dramatically.”

You've got one job, to smash cars with baby seats in them and report the results!

Is it not possible to visualize the difference between a 70 mph smash versus a 38 mph smash? My guess is that by the time the report was ready to be presented none of the white lab coat scientists were allowed to be seen. It was show time!

Measure of a Measurement

A New York Times analysis of census results in 2005 claims that 51 percent of women in the US are living without a spouse. This is up from 35 percent in 1950 and 49 percent in 2000.

This is a cargo cult analysis!

If there are always 50% men and 50% women then a study of men should also indicate that 51% of men live without a spouse as well. In a third and seperate study of married people we should find that 49% of the people who respond to the survey are married.

It's probably true that a greater percentage of Americans are not married these days. You can just look around however and add up your married and single friends and family. Then go back to a previous generation. What generation had a higher population of married people. Then go talk to everyone you can about why they think they are single. Talk to the old people about why they stayed married or why the never married. Wouldn't that be more informative?

The Duke Lacrosse Story

I watched George W. Bush last night on 60 Minutes. As much as he disgusts me I must listen. I listen because the real threat to our way of life is not swarthy tough guys hiding in caves in the middle east. The threat to the American way of life comes from people like George.

Mike Nifong, the prosecuter behind the Duke lacrosse sexual assault case is the type of person who worries me. He was six weeks away from an election when the Duke case came up. Durham voters are divided between black and white. Nifong promised black voters that he would not let the Duke case drop. He indicted two of the players two weeks before the election and narrowly won.

Nifong had the accuser chose from photos of the 46 white lacrosse players on the team—a multiple-choice test with no wrong answers. He was also aware that there was no DNA evidence linking any of the men to this woman. What he wanted however, was to get re-elected. He acheived his goal.

So how does this relate to Cargo Cult Science. It is about human ambitions. If there is a Cargo Cult airport there are going to people running the airport. How does one get to be an authority when no airplanes have ever landed? In Biotechnology we rely on college degrees, patents, publications and a number of other achievements losely related to scientific work. We often times run into problems discovering new drugs so we change the rules. We set up a long list of candidates and select a few to hammer through. This is just like the 46 pictures of the Lacrosse team. There were no decoys set up to shed light on the decision process. The DNA evidence handling is another method used. When negative data comes up you just don't talk about it. Gone. Simple.

Some people get caught like Mike Nifong. His Cargo Cult leadership skills were too obvious. He wasn't powerful enough to ignore his critics. The lesson is for the public. When we see George and his ilk lying and cheating we must insist that the system be changed. People will never change. If we change the system people like Bush and Nifong will cease to rise up the chain of command.

Cargo Cult President

The decision to send in more troops to Iraq is bad for the future of the USA. It is good for George W. Bush however. The president knows that his plans will not improve the situation in Iraq. It will however improve his chances of getting out of his last term with higher approval ratings. How could he do worse?

If the American public thought like Richard Feynman there would have been a whole bunch of questions after last nights speech. Here is what Feynman thought about a questionable belief systems:

"But then I began to think, what else is there that we believe? (AndI thought then about the witch doctors, and how easy it would have been to check on them by noticing that nothing really worked.) So I found things that even more people believe, such as that we have some knowledge of how to educate. There are big schools of reading methods and mathematics methods, and so forth, but if you notice,you'll see the reading scores keep going down--or hardly going up in spite of the fact that we continually use these same people to improve the methods. There's a witch doctor remedy that doesn't work. It ought to be looked into; how do they know that their method should work? Another example is how to treat criminals. We obviously have made no progress--lots of theory, but no progress--in decreasing the amount of crime by the method that we use to handle criminals."

Does George W. Bush really know what it will take to decrease the violence in Iraq? Should we trust him on this? Why not ask a few questions and make a promise to revisit his decisions six months from now?

I really don't believe that George W. Bush cares about the soldiers in Iraq. His problem is his popularity and his legacy. He wants to leave office on a high note. The surge in troops is buying him time. Can things possibly get worse? If, by the time he leaves office, things in Iraq get better then he can attribute it to the decsions he outlined yesterday. If things get worse it is because the Iraqi government failed on their end. Its a perfect plan.

Biotech Leadership

Biotech Leadership:

BOSTON - Former Massachusetts House Speaker Thomas Finneran on Tuesday resigned from his $416,000-a-year job as president of a biotech industry trade group, days after he pleaded guilty to obstructing justice during a redistricting lawsuit.

The board of the Massachusetts Biotechnology Council accepted his resignation, effective immediately. Finneran had taken the job in 2004 after resigning his legislative position.
In exchange for Finneran's guilty plea, prosecutors dropped three perjury charges.

As part of the deal, Finneran admitted making false and misleading statements under oath during his 2003 testimony in the voting rights lawsuit when he was asked whether he had seen and reviewed a redistricting plan before it was filed with the House clerk. Finneran had repeatedly denied doing so.

Oops

The way to successfully complete a research project for the drug industry is to tell the leaders what they want to hear. It's rare that you'll get caught practicing a cargo cult science. This story is an acception:


WASHINGTON, Jan 10 (Reuters) - The U.S. Food and Drug Administration on Wednesday urged a number of pharmaceutical companies to confirm or repeat some studies done for them by a unit of MDS Inc. (MDS.TO: Quote, Profile , Research) (MDZ.N: Quote, Profile , Research) from 2000 to 2004.

FDA said inspections of MDS Pharma Services had raised questions about the validity and accuracy of studies that measure the level of a drug in a patient's blood and could have been used as part of the basis for FDA approval.

Shouldn't the FDA conduct these types of audits before they approve a drug? Shouldn't they insist that the studies be repeated?

Nobel Prize Winner in Business

A blazing new flame has been put along side the Cargo Cult Airport of Biotechnology. Just check out the scientific advisory board.

LOS ANGELES & WORCESTER, Mass.--(BUSINESS WIRE)--CytRx Corporation

(NASDAQ:CYTR - News) today announced that it has contributed its RNA interference (RNAi) assets to RXi Pharmaceuticals Corporation (RXi), which is co-owned by CytRx and several world leaders in RNAi technology. RNAi has been shown to effectively interfere with the expression of targeted disease-associated genes with great specificity and potency. Subsequent to this contribution, CytRx owns approximately 85% of the outstanding stock of RXi, with the remainder owned by RXi's anticipated scientific advisory team. RXi is a "pure play" RNAi company dedicated to developing proprietary RNAi therapeutics and, in addition to current industry leader Alnylam Pharmaceuticals, RXi will be one of the few companies focused exclusively on developing and commercializing products based on RNAi technology. Pending consent from their research institutions, RXi's scientific advisory board will include four leading scientists who have played major roles in discovering and defining the RNAi field:

Craig C. Mello, Ph.D. received the 2006 Nobel Prize in Physiology or Medicine for his co-discovery of RNAi. He is the Blais University Chair in Molecular Medicine at the University of Massachusetts Medical School (UMMS), a Howard Hughes Medical Institute Investigator and a member of the National Academy of Sciences. His RNAi findings were recognized as the 2002 "Breakthrough of the Year" by Science magazine. Gregory J. Hannon, Ph.D. is a Howard Hughes Medical Institute Investigator at Cold Spring Harbor Laboratory. His laboratory is credited with discovering the mechanism of RNAi in human cells (RISC/siRNA) as well as discovering short hairpin RNAi (shRNAi). Dr. Hannon is also a leading expert on oncogene pathways and was formerly an advisor to Alnylam Pharmaceuticals.

Tariq M. Rana, Ph.D., is Professor of Biochemistry and Molecular Pharmacology and Founding Director of the Program in Chemical Biology at UMMS, and has previously advised a number of biotechnology companies including Sirna Therapeutics, where he served as a member of their Scientific Advisory Board. Dr. Rana discovered key technology for the chemical stabilization of RNAi and has obtained RNAi activity in animals by local and systemic delivery.

Michael P. Czech, Ph.D., is Professor and Chair of the Program in Molecular Medicine at UMMS. He has authored more than 250 papers in the field of insulin action, and was awarded the American Diabetes Association's Banting Medal for Scientific Achievement in 2000 as well as the ADA's Albert Renold Award in 2004. He has used RNAi to discover a number of genes involved in diabetes and obesity.

RXi intends to build on CytRx's RNAi therapeutics programs for the treatment of human diseases, initially focusing on neurodegenerative disease, oncology, type 2 diabetes and obesity. (biotech cargo cult most popular diseases!) The contributed assets from CytRx consist primarily of several key licenses to early fundamental RNAi technologies from the University of Massachusetts Medical School (UMMS) and the Carnegie Institution of Washington, as well as equipment and other tangible assets from CytRx's Worcester, Massachusetts laboratory. The licensed technologies include pending patents on RNAi target sequences, chemical modifications and delivery to cells, and field-specific licenses to a seminal patent application on chemical modification of RNAi filed in 1992 by UMMS and invented by Tariq M. Rana, and to the "Tuschl I" patent. The technologies also include exclusive licenses to patent applications that disclose gene targets for diabetes and obesity, including RIP140, which has been shown to be a master regulatory gene for metabolism in fat cells.

"CytRx has been acquiring, developing and consolidating its RNAi therapeutic assets since 2003. These assets have been created by research performed at UMMS and CytRx's laboratories from 1998 through 2006. We are now moving these assets into an RNAi company exclusively committed to accelerating the commercialization of second-generation RNAi-based therapeutics addressing important diseases, including type 2 diabetes and obesity. We believe this transaction represents the best strategy for CytRx and its shareholders to benefit from the potential value of these RNAi assets, as RXi will have a single, focused purpose positioned to compete directly with other leaders in the industry," said Steven A. Kriegsman, President and Chief Executive Officer of CytRx. The Cargo Cult Scientist believes the CytRx's RNAi program was dragging along with no real results. They are dumping it off in a business way.

Tod Woolf, Ph.D. will serve as Chief Executive Officer of RXi. Dr. Woolf has 20 years of experience developing and commercializing innovative biomedical technologies, and is a recognized leader in RNA therapeutics. He previously worked at numerous biotechnology companies including Ribozyme Pharmaceuticals (now Sirna Therapeutics), where he co-developed a number of lead therapeutic RNA compounds and developed Genbloc(TM) RNA technology, which was spun out to create Atugen. He founded and served as Chief Executive Officer of Sequitur, an RNAi company acquired by Invitrogen in 2003. At Sequitur, Dr. Woolf co-invented and commercialized STEALTH RNAi, one of the most widely used second-generation RNAi research products. Also at Sequitur, he established collaborations with over a dozen major pharmaceutical companies. More recently, Dr. Woolf served as an advisor to Signet Laboratories prior to its acquisition by Covance, and has advised ProNai, Praecis Pharmaceuticals and Invitrogen. Dr. Woolf earned his Ph.D. in biology at Harvard University where he performed seminal work in the then-nascent field of RNA therapeutics. He has recently been serving as a consultant to CytRx in connection with the formation of RXi.
"I have been impressed with Craig Mello's insight and integrity since we met during our graduate program at Harvard and during our work together at Sequitur. It will be an honor to work with him and Drs. Rana, Czech and Hannon. A void was created in the industry by Merck's acquisition of Sirna Therapeutics. RXi intends to fill that void," said Dr. Woolf. "The announcement of our extraordinary scientific advisors and senior management team is the first step in our quest to lead the RNAi therapeutics field," added Dr. Woolf.
RXi has named James Warren, MBA as Chief Financial Officer. Mr. Warren has more than 30 years of experience in financial and general management in rapidly evolving technology-based companies. From 1991 to 1998 he served as Vice President and Corporate Controller for Genzyme Corporation, where he managed an international staff of 120 finance professionals. He also served as CFO of Aquila Biopharmaceuticals, Inc., Harvard BioScience, and ActivBiotics, Inc.. He has been involved in raising over $1 billion at the various biotechnology companies where he was employed. Mr. Warren earned his MBA in operations and research at Boston University, and has recently been serving as a consultant to CytRx in connection with the formation of RXi.

"The clinical potential of RNAi technology is garnering strong attention from the pharmaceutical industry, making the timing excellent to acquire these RNAi assets from CytRx. We believe that RXi's unique assets and pure-play structure make it well-suited to pursue collaborations and compete directly with other leading RNAi companies," noted Dr. Woolf.

So many scientists, so much money, so... where are the drugs?

Another Interview

The interview was not unlike any other. I always think they go well. The uncomfortable part was the last 15 minutes where I talked to the lab staff. Between them they had been in the U.S. for less than a year. The conversation was slow and awkward.

I decided not to drive to the interview. I got a ride and headed downtown afterwards. Rain was coming down sideways as I tried to find windblocks in the wasteland of Paul Allens biotech hub of south Lake Union. I ducked into the Whole Foods at 2200 Westlake. I didn't buy any food or coffee, I just took a seat by the window to watch the rain. I could see that no one had moved in to the biotech hub. The U of W was building and so was Vulcan. Vulcan is Paul Allens company. They are the ones who are to deliver the dream of south Lake Union becoming an urban oasis of affluent people. Above the Whole Foods was the Pan Pacific hotel where rooms start at over $200 a night. The condos at 2200 Westlake went as high as $2 million and they were all sold out. But there were no companies moving in. A little further east is 1616 Eastlake and the Hutch but they too thrive on low paid foreign nationals who did not move to the U.S. to pay $600 per square foot for their home. The oasis was doing okay with affluent people buying up the residential space but those people weren't coming from the biotechnology companies.

The problem is that Paul Allen wanted an industry that will make money and feed into his other plans. Instead he got affluent people who feed on people like Paul Allen. If an engineer develops a new mouse trap and the whole world wants one there will be a lot of jobs. The jobs will put money into the pockets of locals who will spend at the shops. Doctors and dentists and mechanics will have to move in and the next thing you know you've got a community. What we are seeing in South Lake Union is an unbalanced community. The new buildings are soothing to the tastes of Paul Allen but those who work inside are not paid enough to live in the neighborhood. Artists could never live there. Bars and restaurants could never survive. The future is looking dim, but maybe it was just me sitting there in the rain.

The interview was fine. I wouldn't be able to eat at Smoke'n Joes BBQ or have coffee at the corner shop due to the pay. I would be able to stick around and see what will become of the biotech hub of Seattle however. For that reason I hope I do get this job. As for curing Malaria... we'll see about that.

A Monster to Fight Our Wars

Let's not pretend that ruthless leaders of other countries are the only ones who use death and destruction to acheive their goals.

Enough

The presidents plan to add more troops in spite of his generals advice is indicative of cargo cult leadership. The concept is that by sending more troops we are fighting harder to achieve victory. The decision was made after extensive meetings. More meetings means better decision making. Get the concept here. More is always better.

A similar form of flawed thinking takes place among pharmaceutical industry scientists. If we can make a molecule bind tighter to its target we say we have a better drug. How tight? They don't know, but they know it needs to be as tight as they can get it.

To me, true science and art are the same. Knowing just how much color to add, how long to hold a note, or how much sky to include in a landscape is part of it. When starting a war you should know what your objectives are so you'll know when you are done. President Bush is not a practicioner of true art and science. He is a cargo cult scientist! He started a war and made a list of 50 bad guys in Iraq that needed to die. Number one on the list will die this weekend. But that airplane carrying peace in the middle east isn't coming. Do we need to kill more leaders? More fighters? Maybe less killing would help.

Obesity

PYY 3-36, one of the many flames along the runway of our cargo cult airport, will live on in 2007.

BOTHELL, Wash., Dec. 21 /PRNewswire-FirstCall/ -- Nastech Pharmaceutical Company Inc. (Nasdaq: NSTK) today reported positive results from a dose ranging study designed to evaluate the pharmacokinetic parameters, appetite, food intake and safety of various doses of Nastech's proprietary PYY(3-36) nasal spray in obese subjects. The study identified doses for a long-term Phase 2 efficacy and safety clinical trial.

Now let's go back in time to see where PYY was in 2004.

86th Annual Meeting of The Endocrine Society (ENDO 2004), New Orleans, LA,

Nasal Peptide YY3-36: Phase 1 Dose Ranging & Safety Studies in Healthy Human Subjects. Download Poster (PDF)

13th European Congress on Obesity, Prague, Czech Republic, May, 2004

Nasal Peptide YY 3-36: Phase 1 Dose Ranging and Safety Study in Healthy Human Subjects. Download Poster (PDF)

So we are back to a point that seemed to be established back in 2004. At that time Nastech was partnered up with Merck to advance PYY. In March of 2006 Merck pulled out of the collaboration after it decided data from a "Preliminary Proof of Concept Study" of the intra-nasal formulation of PYY didn't demonstrate efficacy. Merck didn't want to play The Beer and Pizza Diet so Nastech went back to a happier time, 2004.

From the NSTK website: To date, Nastech has completed three Phase I trials of PYY. These trials have enrolled over 60 subjects and administered in excess of 900 doses in the Nastech PYY program. Results from the PYY Phase I clinical trials indicate the investigational product is safe, well-tolerated and shows evidence of reducing caloric intake, moderating appetite and demonstrating weight loss in human subjects. Unless you ask Merck

Steven C. Quay, M.D., Ph.D., Chairman, President and CEO of Nastech. "These results support a decision (#4 on The Five Dumbest Things On Wallstreet This Week by Colin Barr, 3/3/2006) to advance this program toward a long-term Phase 2 Weight Loss Clinical Trial. With obesity reaching epidemic levels worldwide, the need for a safe and effective product that promotes weight loss has become critically important."

Never ask a drug company CEO if there is a need for a safe and effective product that has become critically important. It's guarenteed that he/she's got one and it works.

A Poem

but they've left us a bit of music
and a spiked show in the corner,
a jigger of scotch, a blue necktie,
a small volume of poems by rimbuaud,
a horse running as if the devil
were twisting his tail
over bluegrass and screaming,
and then,
love again
like a streetcar turning the corner
on time,
the city waiting,
the wine and the flowers,
the water walking across the lake
and summer and winter
and summer and summer
and winter again

--from the poem, " If We Take"
Written by Charles Bukowski