Latest / The BioHub - by Avetix / Episode 199 - Miles Gerson - Partner at SV Health Investors and Co-Lead of The Dementia Discovery Fund
Transcript
- 0:06Welcome back to the Bio Hub. Today, we're delighted to
- 0:09welcome Myles Garson, partner at SV Health Investors and Co lead
- 0:14of their Dementia Discovery Fund, one of the most important
- 0:17investment platforms focused on advancing new therapies in
- 0:20neurodegeneration. Prior to SV, he led to CADA
- 0:23Ventures, where he oversaw A broader life sciences investment
- 0:26portfolio and helped shape strategy across more than 60
- 0:29private and public company investments.
- 0:32What makes Miles especially interesting is the breadth of
- 0:34perspective he brings to the table, spanning venture
- 0:37investing, company building, business development and
- 0:40operating leadership across life sciences.
- 0:43He also brings a strong academic foundation with training in
- 0:47neuroscience, as well as IP and FDA law, which gives him a
- 0:50particularly thoughtful lens on how innovative science gets
- 0:53translated into companies and ultimately into medicines.
- 0:56Miles, it's great to have you with us today.
- 0:59Thank you very much. Appreciate being here and
- 1:01speaking with you. Yeah, no worries at all.
- 1:03I mean, just to begin with, Miles, you know, can you walk us
- 1:05through a little bit about your career path and how you got into
- 1:08venture capital and what really also LED you to focus so deeply
- 1:12on neurogeneration? Yeah, Yeah.
- 1:15I just had a conversation with another venture colleague about
- 1:19this and you know, for those looking to, you know, eventually
- 1:22get into this space or you know, rise towards, you know, being
- 1:26senior leadership within a fund, My comment is it was non linear
- 1:31in in the most extreme way. I think my background has just
- 1:36this extensive combination of good fortune to a degree,
- 1:41opportunities to expand skill sets and a willingness to take
- 1:46on challenges that I don't think I was necessarily prepared for
- 1:51at the time. But the, the nonlinearness adds
- 1:57a lot of skill sets that I can now deploy for our portfolio
- 2:00companies at the board level. So, you know, I, I started out
- 2:04as you mentioned in academia at the bench working on neuro
- 2:14related projects for my master's work, but really was interested
- 2:18in the protection of intellectual property around
- 2:22this space. So I went on to study in law
- 2:25school, but but very much realized that I was really drawn
- 2:29to the business aspects of developing novel technology and
- 2:34quickly added an MBA, which I was very fortunate to do at the
- 2:38time. And from there started looking
- 2:41at emergent science out of the technology transfer office at
- 2:44the University of Wisconsin where I was.
- 2:48So, you know, fortunately after consulting, you know, hanging my
- 2:53own shingle, helping small companies try to figure out
- 2:56their PNL, their project finance, all of the design of
- 3:01how they build a company. I was welcomed into a venture
- 3:05capital fund, but only for a very brief period of time when
- 3:08they then asked me to jump in as a first employee for one of
- 3:11their portfolio companies. So I was going to build a
- 3:13company and live that from there, moved into tech transfer
- 3:19at UCLA, moved back into private for a couple early stage
- 3:23companies and was fortunate to be drawn into a company that we
- 3:29pulled onto the NASDAQ in 2017, which was a tremendous
- 3:34experience. I actually operate as a general
- 3:36counsel and Head of Business development in that context and
- 3:40then joined Takeda Ventures. So all that sounds very linear,
- 3:44but it certainly was not. And the exposure over about 25
- 3:49years of different companies, different business models,
- 3:53different technologies, even ranging from medical devices all
- 3:57the way through to health tech exposed me to just a lot of
- 4:01different things that I that I try to deploy to the benefit of
- 4:04our portfolio. Yeah.
- 4:06And obviously neuroscience was a focus for you from the
- 4:08beginning. And what made neurodegeneration
- 4:11specifically a category that you wanted to spend time in?
- 4:14And why do you think now is a really, you know, important
- 4:16moment for the field? Yeah, now is really fascinating.
- 4:22So it's, it's a really difficult space for a lot of reasons.
- 4:27I, I won't spend a lot of time talking about the challenges,
- 4:30but I think, you know, pharma all the way down to, you know,
- 4:33early stage investors have viewed that, you know, running
- 4:37clinical trials for these type of patients and understanding
- 4:40the outcomes and trying to ascribe some sort of
- 4:43understanding to the responsiveness of drugs in the
- 4:45brain on an individual basis is a, is a compounding risk on risk
- 4:51on risk that we really hadn't had chance to interrogate or
- 4:55elucidate, you know, early on. And we were adding, we're
- 4:57standing on the shoulders of all of us who went prior and tried
- 5:01things. We're now arriving at a time
- 5:04where there's huge data sets, people have started to aggregate
- 5:12even biomarker work in healthy individuals for comparison
- 5:16against neurodegenerative. But because of these challenges,
- 5:21it has definitely created a hurdle for innovation across the
- 5:27industry to really get good footing.
- 5:32However, now I, I do see tremendous momentum and we've
- 5:36seen this, you know, through M&A, we've seen this in the
- 5:39public markets, we've seen this through funding where
- 5:43undoubtedly there is deep interest in this white space
- 5:49that still you can, you can do tremendous things for patients
- 5:52with incremental improvements for disease modification.
- 5:55We really just have not fully gone to the depths that other
- 5:59therapeutic areas have. Simultaneously the impact on
- 6:03society, families, patients of neurodegeneration is massive.
- 6:09Dementia Dementia alone is one of the world's largest unmet
- 6:13medical needs and has branching impacts across societies and
- 6:17economies. Yeah, I mean it, it, it seems to
- 6:20be an area that's getting more and more attention as we as we
- 6:22go on. Obviously, you know, large farm
- 6:24Rex did for a while, but but it seems as though they're they're
- 6:27they're getting back into the swing of things, which is
- 6:29exciting, you know, for a lot of small companies, especially.
- 6:32Absolutely. Yeah.
- 6:34And Will and a willingness to explore.
- 6:38I think that that we've we've reached a point on a lot of
- 6:41levels that I think investors too have more comfort in
- 6:45exploring kind of early efforts because of again the data that
- 6:50we've generated over decades now of effort.
- 6:53Yeah, I mean, when when you look across the landscape nowadays,
- 6:57what are the biological themes that both you and SV are most,
- 7:01most excited by at the minute? Yeah.
- 7:04So one of the biggest challenges I think is a blood brain barrier
- 7:08for for a lot of these modalities, there's a lot of
- 7:12focus on brain penetrance. And I think there's some
- 7:16incredible efforts that are being made to examine how we
- 7:20take chemistry that we we probably understand and can
- 7:24manipulate really well. And that's small molecule, but
- 7:28really understand how well the brain penetrant and and fine
- 7:34tune the the brain penetrant of those types of modalities can
- 7:41achieve. But secondarily, I think we're
- 7:43getting really good at Target deconvolution, target
- 7:46engagement. The biggest challenge I think
- 7:50you know, once your passive blood brain barriers actually
- 7:52distribution to the relevant brain areas that are sufficient
- 7:55quantum of the drug itself. So obviously we've gotten much
- 8:00better at understanding how how well we're engaging.
- 8:03We're getting better even at surrogate, surrogate biomarkers,
- 8:07even digital biomarkers and understanding patient impact.
- 8:11But this is actually, you know, blood brain barrier is a big
- 8:14challenge. Novel modalities.
- 8:16We're looking at how one gets, for example, oligos into the
- 8:21brain, novel shuttles. There are some really, you know,
- 8:27brave and I think valiant efforts that have come to bear
- 8:31in terms of delivering to deep brain caudate and seeing the
- 8:35effects in patients which have been, which have been phenomenal
- 8:38to see. It's opening up areas for
- 8:41neurodegenerative patients who previously thought that it was,
- 8:45you know, almost virtually impossible for them to
- 8:47adequately treat their disease. So it's an interesting
- 8:51combination where, like, even the medical device world is
- 8:53starting to converge. But for me, the biggest
- 9:00challenge that I face in evaluating novel technologies
- 9:04now is what I consider moving targets as it relates to
- 9:08biomarkers. There's a number of kind of
- 9:11leading candidates for a number of diseases that we work within.
- 9:15You know, our fund focuses on neurodegenerative, so it's, you
- 9:18know, Alzheimer's, dementia, broadly Parkinson's, ALS,
- 9:23Huntington's and you know, there's a variety of other
- 9:27diseases that fall into that context.
- 9:30But, but we really do look deeply at biomarker effect
- 9:36because sometimes those are the only things that you can
- 9:39evaluate to to understand and assess drug activity.
- 9:44However, I think our understanding of biomarkers is
- 9:47vastly incomplete. I think each individual patient
- 9:52carries a bit of a fingerprint of biomarkers and to more
- 9:56complicate it more, it's actually on a time or even
- 10:00circadian basis. OK.
- 10:03So, you know, you may assess somebody, you may take ACSF
- 10:06sample at one time point, but it's really difficult to have
- 10:11repetitive Spinal Tap CSF samples and really get a sense
- 10:15for where these biomarkers sit not just on a time basis, but
- 10:19relative to each other. That's the biggest thing is I
- 10:22actually think biomarkers are moving up and down on a
- 10:25circadian basis, even on a environmental basis.
- 10:29You know, sometimes you bump your head hard and that can
- 10:32actually send some of these biomarkers in a different
- 10:34direction and all of a sudden what you thought was a read on
- 10:38your drugs activity is more an environmental effect.
- 10:42So a lot of my conversations relate to people who are really
- 10:48trying to find ways to chart and track and understand the
- 10:53relative movement of biomarkers and new biomarkers as well over
- 10:59time. In in some cases, this has been
- 11:01a graveyard, to be frank, blood, blood biomarkers as it relates
- 11:05to the brain, not an easy task, right?
- 11:08And, and how do we deconvolute it?
- 11:10Fortunately, I think we are at a compute time in our scientific
- 11:15trajectory where we have tools that are particularly good at
- 11:22searching, identifying patterns and providing potential insights
- 11:28for us to consider. I don't rely ever 100% on these
- 11:32types of insights, but I think we have a technological point.
- 11:35Where we may. Be able to start exploring this
- 11:38in more depth across these really big data sets.
- 11:42So that's. That's where I look a lot at.
- 11:44Yeah, within sort of neurodegeneration as a broader
- 11:47category, neuro inflammation feels as though it's an area of
- 11:51rising conviction. I mean, what, what are you most
- 11:53interested then there and what evidence do you really need to
- 11:57see to, to be, you know, to start getting excited about
- 11:59those areas? Well, yeah.
- 12:03So obviously the evidence ties back to how well we understand,
- 12:06you know, differences in cognitive impact all the way
- 12:09through to, you know, surrogate biomarker or not even surrogate,
- 12:14but just traceable biomarker as it relates to, you know, those
- 12:17important changes for patients. And depending on the disease,
- 12:21this varies. Obviously, neuroinflammation is
- 12:24very interesting. It has been on everyone's radar.
- 12:27So it's not, you know, absolutely brand new.
- 12:30But again, this is one of those things where we have to stand
- 12:32upon the shoulders of grates to get to where we're going.
- 12:36But the reason I find it particularly interesting is
- 12:40again, we have this challenge where we we talk about
- 12:43entanglements, we talk about protein aggregates or just
- 12:47aggregates generally in the the brain cells of these patients.
- 12:54And you do have to ask the question, because these these
- 12:58things happen over long periods of time, how do we look at
- 13:03mechanisms that may be driving things earlier than we can
- 13:07recognize? And I think neuro inflammation
- 13:10falls into that space. It drives a lot of dynamics as
- 13:15it relates to cellular activity with the brain that has to do
- 13:17with repair mechanisms, even cellular activity that can be
- 13:21deleterious. And so neuro inflammation from
- 13:24my perspective, offers some interesting pathways that we
- 13:28really do need to explore beyond just going direct towards the,
- 13:32the Physiology and trying to, you know, break up aggregates
- 13:38or, or entanglements and try to intervene or find ways to
- 13:43intervene meaningfully before these things start occurring.
- 13:47I've heard other scientists make the argument that sometimes when
- 13:52we see aggregation, perhaps the, the horses have already left the
- 13:56barn, so to speak, right. I don't know if that's 100% true
- 14:00because I think there's some combinatorial effects.
- 14:02It becomes, you know, a self feeding cycle.
- 14:06Sometimes these aggregates may drive some of these mechanisms
- 14:10as well. So it's something that we're
- 14:12starting to explore again, this, this goes back to how do you
- 14:16measure and what, what do we get confident in, in terms of
- 14:21neuroinflammation affect on disease modification.
- 14:24And that obviously goes back to biomarker strategy, patient
- 14:28enrichment plan. So we really can see within a
- 14:31unique group of patients on trial in effect and and have
- 14:35some understanding individual differences for these long
- 14:38standing diseases can be really challenging to you know
- 14:41delineate. Yeah.
- 14:42And it feels as though within neuroscience as a whole, you
- 14:47know, conversations with more generalist investors around CNS
- 14:52opportunities are starting to happen more often.
- 14:54And you know, it's sort of follows that theme of large
- 14:56pharma getting getting back into neuroscience and is, is that
- 14:59something that you're seeing too?
- 15:00And what really do you think, you know, brings back that
- 15:03demand within that space? Yeah, without a doubt.
- 15:06So I, you know, I, I think there's a number of human
- 15:12elements that are pushing this. We have a number of
- 15:15international communities that are facing aging workforce and
- 15:21declining population. Yeah, we we have a very good
- 15:25understanding of the impact on world economies as a relates to
- 15:31those effects. And in particular with
- 15:33neurodegenerative, you know, the, the impact of even dementia
- 15:39on the ability of not just one person, but all the caregivers
- 15:44in the, in the close circle around that one person and, and
- 15:47the healthcare system and the costs to really help these
- 15:52people. It, it's, it's a big financial
- 15:56number. And so when you look at
- 15:59generalists, what, how do they assess opportunity?
- 16:03This is a market that has huge potential, of course, for
- 16:10patient impact, huge potential for society impact, and huge
- 16:14potential for solutions that have not yet emerged.
- 16:20That combination sounds like a recipe for very good investment
- 16:25thesis. And, and I think that's why you
- 16:28see generalists looking at this. It is a white space.
- 16:32At the same time, I think there's there's encouraging
- 16:37scientific discovery and frankly clinical outcomes that are
- 16:41making people more comfortable to engage in finances because
- 16:45the numbers are quite large. If you're purely a financial
- 16:48investor, if you can make incremental improvements and
- 16:52really show impacts at a healthcare and patient level,
- 16:58there's a very good investment thesis.
- 17:00Yeah. And you know, the the upside
- 17:02potential is, is obviously huge, but but alongside that and what
- 17:05comes with it is it is obviously a massive area of risk.
- 17:08I mean CNS is, is one of the areas that that is, you know
- 17:12that arguably the hardest to to develop new drugs in.
- 17:14There are so many different challenges that are that are
- 17:17nuanced to CNS that you know, whilst there is massive
- 17:20potential upside, that there is also a much bigger risk of risk.
- 17:23Of failure. Yeah, I, I, I agree.
- 17:28And I think that's what also we're getting better at.
- 17:31I, you know, I, I mentioned this patient enrichment strategy, you
- 17:36know, really understanding disease dynamics and you know,
- 17:39each, each effort that is made adds to our knowledge.
- 17:44It's, it's extremely high risk, but in, in the same regard, we
- 17:47have to think about what these patients are facing.
- 17:51And so you have a very motivated, a clinician
- 17:55population, a very motivated patient population, you have
- 17:59families that are pushing very hard.
- 18:03And I think that combination really enables as long as it's
- 18:08thoughtfully done, safely done and logically done right.
- 18:18We, we have a, a convergence of many different aspects to
- 18:24address that risk. And I think that makes it
- 18:30tolerable from the risk perspective.
- 18:34You always have to think about risk tolerance when you're
- 18:36driving these things. We, we spent a lot of time
- 18:38talking about this within, within our group.
- 18:41How are we managing the risk? What are acceptable risks, but
- 18:46additionally, you know, what are risks that we should be taking?
- 18:49You know, the inception of the DDF was dating back to I think
- 18:542015. There was a discussion that no
- 18:57one was taking these risks. And the driving force behind
- 19:02forming this fund was to to actually push forward science
- 19:06and technology in the dementia space.
- 19:09That just wasn't happening, but yet societal impact was being
- 19:13felt. You know, extremely.
- 19:16We've formed 11 of 22 companies. I mean that if you want to take
- 19:19out a risk forming a company from the start, being a very
- 19:22early investor that presents the least amount of information to.
- 19:26Yeah, Yeah, 100%. I mean, when when you are
- 19:31assessing these potential opportunities, weighing up, you
- 19:33know, risks versus rewards, what separates A genuinely investable
- 19:38neurodegenerate, neurodegeneration focused
- 19:40company from one that just tells a really good, you know,
- 19:43scientific story? Yeah, it, you know, this is
- 19:46something that we, we face probably every day, we, we
- 19:49discuss on, on a, on a different basis scientifically, the things
- 19:53that come to mind consistently. You know, we really do want to
- 19:58make sure we understand the mechanism of action.
- 20:02And that's a a tall order in this.
- 20:04Context. So being able to if, if, if
- 20:10someone comes to us and has done the work in both, you know,
- 20:16relevant models and have have gotten frankly, I, I this is not
- 20:20a requirement, but you know, non human primate data is, is really
- 20:25powerful, but but you don't have to get to that extent to
- 20:30necessarily understand the mechanism.
- 20:34But what where we get stuck sometimes is where there are
- 20:38leaps of faith that are too big and or we are looking at things
- 20:46that are so upstream and really just have pathway effect without
- 20:50ascribable impact down to at least a narrow set of actions.
- 20:57You know, if it's just too broad based.
- 20:59So we talked about neuroinflammation.
- 21:01You know, there've, there've been plenty of efforts for broad
- 21:03based anti-inflammatory, right. And what we're really trying to
- 21:09move more towards is precision medicine where we really do
- 21:12understand the impact we're having biologically.
- 21:16That's probably the first thing we we look at closely if there's
- 21:20anything in the clinic that has, you know, lessons for us if
- 21:24there's clinically validated pathways, but it's a non
- 21:26modality and we we do see that there's innovation on shuttles,
- 21:31there's innovation on different ways to hit targets.
- 21:34So clinically validated pathways is is actually, you know, a very
- 21:38helpful starting point trying to think what else you know makes
- 21:45it absolutely investable on front end.
- 21:47You know, we can go, you know, deep into, you know, how venture
- 21:50capitalists think about what is investable or not, but they
- 21:52don't think so. Enough time.
- 21:56Yeah, I, I think, I think 1 area that is probably slightly under
- 22:02represented or or at least, you know, not thought about enough
- 22:04is, is that around 70% of dementia patients are women.
- 22:09I mean, you know, how should investors and companies start
- 22:13thinking about this more seriously?
- 22:14But both in understanding disease biology, but also in
- 22:17designing therapeutics. This is a topic I have a number
- 22:22of friends locally here that I have this discussion with
- 22:26consistently. We have to be really aware of a
- 22:33population that I that has differential biology, right?
- 22:37It's just there, there are different factors at play.
- 22:42From a sex difference perspective, you're absolutely
- 22:45correct. I think the, the figure is
- 22:47somewhere between 60 to 70% of dementia patients are female.
- 22:51It's an, it's an interesting parallel, but something like the
- 22:54same percent, 70% of autoimmune patients are female, right?
- 23:00So we have to acknowledge that perhaps there is something
- 23:04differential that we should be paying not only paying attention
- 23:07to, but you know, if you're if you're being a thoughtful
- 23:11investor, you think about patient populations that you can
- 23:14be impactful for. And perhaps, you know, if we dig
- 23:18into the data and I actually think we are arriving at a time
- 23:21point where there's both increasing focus on this,
- 23:26there's the ability to, to striate and, and, and
- 23:30interpolate data on this basis. There may be some very
- 23:38meaningful druggable differences that we should be aware of, or
- 23:44at least from a perspective of a, of a, a protocol or a, a
- 23:52therapeutic regimen that varies that would be impactful between
- 23:57the two. You know, I think it's been long
- 24:01ignored, frankly. And you know, please, please
- 24:03don't laugh at this example, but it, it's, it's one that kind of
- 24:06shocked me. This is not my fact.
- 24:10This was shared with me. So apologies if someone proves
- 24:12it absolutely wrong, but I think it's accurate.
- 24:16You'll laugh. So the the United States at a
- 24:21certain time point not require that women be in clinical
- 24:24trials. Wow.
- 24:26It was not a legal requirement and not until the premiere of
- 24:29ATV show that I grew up watching Fresh Prince of Bel Air.
- 24:36That premiered. Before it was legally required
- 24:38for women to be in clinical trials.
- 24:41Wow. So that sets of like a stamp, a
- 24:45timestamp of, of, you know, how far away we were from evaluating
- 24:49us from a, from a broader time stamp perspective.
- 24:54It's, it's, I think an interesting opportunity.
- 24:58It's something we can't ignore. And, you know, I encourage
- 25:02others to engage in this conversation.
- 25:04I encourage, you know, scientists who are looking at
- 25:07these, these differences biologically because I, I do
- 25:13think this could be very meaningful for, for both sex
- 25:20base differences from both men and women, there could be
- 25:22differential treatment that's meaningful.
- 25:26So I think it's quite interesting.
- 25:28No 100%. And I think it's it's definitely
- 25:30an area that that firstly has to be considered, but, but also, I
- 25:34mean, looking forward to the future, if there are ways to
- 25:37differentiate between between treatments dependent on sex, it
- 25:40the benefits that come with it are astronomical.
- 25:43And if you're an investor, you have 51% of the population that
- 25:46is unaddressed right now. Yeah.
- 25:49Yeah, exactly. I mean, just to sort of wrap,
- 25:52wrap things up as as we typically do on on this podcast,
- 25:55I mean, if you could have dinner with any scientist or innovator,
- 25:59past or present, who would it be and why?
- 26:01Yeah. So I thought about this.
- 26:03I had some childhood scientist that I I really was impressed
- 26:07with. But you know what?
- 26:08This is a trick question in my mind.
- 26:10OK. Right.
- 26:12And maybe. That I I hope I'm not the first
- 26:15to think of this, but apology as if I'm a avoidant in my
- 26:18response. I actually don't think that we
- 26:21should be picking just one person who could be informative
- 26:27or exciting. Part of my job is talking to so
- 26:29many brilliant people across. The board.
- 26:33And the way I get better at my job, the way that I grow as an
- 26:36individual, the way that I get excited about things is actually
- 26:41having dinner or chatting with brilliant people over and over
- 26:46and over again. And so This is why I struggle.
- 26:48I say, OK, I could name one scientist, right?
- 26:51And I probably would have, you know, an amazing dinner, a
- 26:54conversation. But truthfully, I think the
- 26:58human condition requires us to talk to as many brilliant people
- 27:03as we can. And so my goal would not to be
- 27:07to focus on just one, it would be to seek out every single
- 27:10person I could talk to. So I it's totally avoided, but
- 27:15that's the honest answer. Yeah, complete, completely fine.
- 27:19Yeah, we'll have to book out, book out a pretty large room to
- 27:23be able to fit that one in. But it it takes a.
- 27:25Lifetime, right? And that's what we're here for.
- 27:27Yeah, 100. Percent, but like it's been a
- 27:29been a pleasure having you joining me today, Miles.
- 27:31I've really enjoyed our conversation.
- 27:34Super. Thank you for having me.
- 27:35Great questions. Again, this is, this is a very
- 27:39expansive and interesting space. I'm excited to be working and
- 27:42and look forward again to talking to everyone who I can to
- 27:46try to address, you know, the challenges these patients,
- 27:49families and communities face. Yeah.
- 27:52And thank you to everyone for for watching or listening along.
- 27:55Make sure you you drop a like and and subscribe for future
- 27:58episodes that are coming out. Thank you and goodbye.