Cincinnati Children’s inks biggest commercialization deal ever

By Barrett J. Brunsman  – Staff reporter, Cincinnati Business Courier

Cincinnati Children’s officials disclosed today that research on gene therapy for sickle cell disease has resulted in the hospital’s biggest commercialization deal ever.

The hospital and Roivant Sciences launched as a joint venture a biopharmaceutical company called Aruvant Sciences, which will focus on developing innovative gene therapies for hematological conditions such as sickle cell and beta thalassemia.

Financial terms weren’t disclosed, but the deal includes “a very large upfront payment,” milestone payments, royalties and stock in Aruvant, said Andrew Wooten, vice president of Cincinnati Children’s Innovation Ventures, which until recently was called the hospital’s Center for Technology Commercialization. 

The new company licensed children’s intellectual property. Roivant is majority shareholder and Children’s is a minority shareholder of Aruvant. 

The deal involves the investigational gene therapy RVT-1801, which was developed in the laboratory of Dr. Punam Malik, director of the Cincinnati Comprehensive Sickle Cell Center.

Dr. Punam Malik is director of the Cincinnati Comprehensive Sickle Cell Center at Cincinnati Children’s Hospital

Sickle cell is a progressively debilitating and life-threatening inherited red blood cell disorder that causes oxygen-carrying cells to be abnormally inflexible and sickle-shaped. Beta thalassemia, or β-thalassemia, is also an inherited red blood cell disorder. RVT-1801 uses proprietary technology intended to increase functioning red blood cells by inserting a modified fetal hemoglobin gene into autologous stem cells through a lentiviral vector. 

“I am excited to work with the team at Roivant to rapidly advance the development of this potentially transformative therapy,” said Malik, chief scientific adviser to Aruvant. “A critical reason why we chose to work with Roivant on this program was their authentic commitment to patients globally.”

In addition to establishing Aruvant, Roivant created the nonprofit Roivant Foundation to improve access to therapies for sickle cell disease for patients in the developing world. More than 70 percent of people with sickle cell live in Sub-Saharan Africa.

While Roivant is based in Basel, Switzerland, the company’s founder and CEO is Cincinnati native Vivek Ramaswamy, 33, who graduated as valedictorian of St. Xavier High School in 2003. He grew up in Evendale, where his father, V.G., spent much of his career working for GE Aviation. His mother, Geetha, was a geriatric psychiatrist in local nursing homes.

Roivant Sciences founder and CEO Vivek Ramaswamy, 33

Roivant did a smaller deal with Cincinnati Children’s in the past, but Ramaswamy has been familiar with the hospital since middle school, when he underwent hip surgery there. 

“I subsequently worked there as a student in bioinformatics (before earning a biology degree from Harvard), and I am grateful for what the institution did for me through both of those experiences,” Ramaswamy said.

Before founding Roivant in May 2014, Ramaswamy was an investor in the biotechnology sector. Roivant is now a $7 billion firm focused on building biotech companies to develop innovative medicines. 

Aruvant is the first Roivant subsidiary in Cincinnati. A headquarters site hasn’t been determined, but the startup hopes to locate in the Uptown Innovation Corridor. A management team will be hired. 

“It is my hope that Aruvant delivers a significant advance in the treatment of sickle cell disease and has a positive impact on the economy of Cincinnati through high-paying jobs in biomedical research,” Ramaswamy said.