Monday, June 11, 2007

Biomed Notebook

Sirtris' path less traveled has made all the difference

By Ryan McBride

Imagine a drug that enables you to stay lean and mean without lifting a finger. That may sound surreal, yet it may be inching closer to reality at Cambridge's Sirtris Pharmaceuticals Inc., a biotech startup in Cambridge where more than one aspect of the business appears to be extraordinary.

Start with the company's recent initial public offering. Unlike the vast majority of biotechs to go public in the past few years, Sirtris sold its first common shares of stock within its projected range, which was $9 to $11 per share. The company also increased the amount of the IPO from $50 million to $69 million to satisfy demand for its stock.

Though Sirtris must clear major regulatory hurdles over the next several years before it sells its first drug, the company appears to be an exemplar in a biotech industry in which many firms barely scrape by, struggle to translate their science into a compelling story, and are forced to license proprietary technology to bigger businesses to stay afloat.

In fact, Sirtris went public primarily to avoid the need to make a deal with a larger firm to fund development of its small-molecule drugs, intended to treat diseases of aging such as Type 2 diabetes and cancer. "The major reason to go public was to control our destiny for the next couple of years," said CEO Christoph Westphal.

Now the company has about $140 million in the bank (it had $80 million from private investors prior to the maiden public offering), which is another atypical state of affairs for a 3-year-old biotech. Sirtris officials say the money in the bank will enable the company to fund several drugs through Phase 2 clinical trials -- all without corporate partners.

Arguably, Sirtris has one of the most compelling stories (and technologies) among biotechs today. The firm is developing small-molecule drugs that activate enzymes known as sirtuins, which have been found to restrict calories without a reduction in food intake or an increase in exercise. And that can resonate with investors and couch potatoes alike.

The company has also gained attention because it shares an owner in common with the Boston Red Sox: John Henry, principal owner of the Sox, who controls more than 2.2 million shares of Sirtris. Henry has no official title with the biotech, but he keeps in touch with Westphal by e-mail.

"I think (Henry's) goal is to do something important in life," said Westphal, "and I don't know if we're as important as the Red Sox, but hopefully we're almost as important as the Red Sox."

For sure, the founders of Sirtris are no average citizens, either. Westphal, an M.D. and Ph.D. from Harvard Medical School, also had a hand in founding Cambridge biotechs Alnylam Pharmaceuticals Inc., Acceleron Pharma Inc. and Momenta Pharmaceuticals Inc. David Sinclair, an associate professor of pathology at Harvard, is the resident expert on sirtuins and the science of aging.

The company also boasts some big-time names on its scientific advisory board. Take Phillip Sharp, a founder of $2.7 billion biotech Biogen Idec Inc., who also happens to be one of only several institute professors at MIT -- and a Nobel laureate to boot. And Robert Langer, another professor at MIT, has co-founded nine life sciences firms and invented technology for many more.

Even in going public, Westphal said he wants Sirtris to stay true to its startup roots and innovative spirit: The CEO and Sinclair still share a small office in the company's modest, 11,500-square-foot headquarters -- and the Friday "beer hour" toll will still sound for the company's 45 employees.