UH and CWRU Biotech Startup Rodeo Therapeutics Corp. Sold to Amgen Inc.

CLEVELAND, Ohio – Drug-development startup Rodeo Therapeutics Corp. has been sold to Amgen Inc., a publicly traded, international, biopharmaceutical company. University Hospitals (UH) and Case Western Reserve University (CWRU) own equal shares of the institutional intellectual property.

Based in Seattle, Rodeo Therapeutics is a privately held biopharmaceutical company that develops small-molecule therapies designed to promote repair and regeneration of multiple tissues. The therapies create the potential to help with colitis, stem cell reconstitution following bone marrow transplant, liver regeneration and other conditions.

Rodeo was co-founded by Sanford “Sandy” Markowitz, MD, PhD and Stanton “Stan” Gerson, MD. But before Rodeo was launched, Harrington Discovery Institute (HDI) provided the initial grant funding for the project. The grant also included engagement with pharmaceutical veterans, who provided insight about how to de-risk the technology and attract additional investment. HDI’s funding allowed Dr. Markowitz to attract additional support from an NIH program that aimed to accelerate innovation and from the venture community.

“It’s easy to claim credit at this stage of the game, but HDI provided grant funding and startup support when no one else would, because we saw the potential for impact,” said Jonathan S. Stamler, MD, President of HDI at UH. “We ensured third party investment in beautiful science, if you will, and now returns from the sale to Amgen will enable funding of future life-saving discoveries, creating a virtuous cycle.”

Daniel I. Simon, MD, Chief Clinical & Scientific Officer at UH, added “The HDI program that helped build Rodeo Therapeutics Corp. exemplifies how UH fulfills its discovery mission on the one hand, and its commitment to our community on the other hand. We truly offer world-leading, drug development capability through HDI.”

Based on Dr. Markowitz and team’s findings published in Science, Rodeo's lead drugs (15-prostaglandin dehydrogenase modulators) play key roles in processes like stem cell self-renewal and epithelial barrier repair. The drugs strategically fit within Amgen's portfolio and efforts to develop therapeutics for patients.

“The company was based on work our team published in Science, but in truth, the crucial catalytic step was the support I first received from HDI that provided the financial resources and indispensable mentoring and guidance in how to move an idea from the lab into the drug development pipeline,” said Dr. Markowitz. “I will be forever indebted to the HDI team for making this milestone possible, and hope that this will be only the first of many celebrations we will all enjoy together as the program matures and ultimately enables us to see this new therapy benefit patients, some with illnesses that are currently untreatable.”

Based in Thousand Oaks, California, Amgen focuses on areas of high unmet medical need and has grown to be one of the world's leading independent biotechnology companies. Amgen has reached millions of patients around the world and is developing a pipeline of medicines with breakaway potential.

Within the deal, Amgen will acquire all outstanding shares of Rodeo for $55 million, as well as the original license for Rodeo-developed technologies. Amgen will also acquire the rights to related technology developed by UH and CWRU researchers within the company.

The final payout will be based on reaching specific milestones that are tied to the drug’s clinical and commercial success. The milestones are currently undisclosed, but payment could potentially be worth $666 million in cash. Total consideration to Rodeo stakeholders could potentially be worth up to $721 million in cash. Dr. Markowitz will continue to be involved in the work as a consultant.

This tremendous payoff comes after ten years of collaborative research and partnership between UH, HDI and CWRU.